Abstract

This study aimed to measure the level of Amman Financial Market efficiency and show the role of financial derivatives in improving Markets’ efficiency. Generally, financial derivatives are considered an essential source of financing an economy. In addition, diversification of financial derivatives’ instruments which are circulated in a stock market as the main standard of measuring its development and efficiency, called as engineering. For the purpose of achieving the objectives of the study, the researcher selected some of the financial analysts’ that represent institutions in Amman Stock Exchange in Jordan, to serve as the sample of the study. Simple Random Sampling was used to select the sample to represent the whole population. Furthermore, the researcher developed a questionnaire to judge the respondents opinions and test the validity of the hypotheses. The questionnaire was designed by using a five -point -Likert scale (strongly agree, agree, neutral, disagree, strongly disagree). In total, the researcher distributed 100 questionnaires and 85 were returned from the selected sample of the study (85% from the whole questionnaires distributed). Results of the study showed that there was a strong bond between financial derivatives and efficiency of Amman Stock Market. Moreover, findings indicated that there is a statistical significant sign between financial analysts’ interests in returns of financial derivatives with their tools and efficiency of these markets.

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