The absence of an efficient “bond-currency-derivative” construct, so called BCD nexus, is sometimes held against the entire market development process. However, the conception of a synergistic, harmonized BCD nexus implies a perfect seamless market with enormous possibilities of risk-payoff combinations using some basic instruments. Implicit behind it is the efficient market hypothesis which itself is being reinterpreted.
Though it might seem that the Efficient Market Hypothesis was one of fundamental, sacrosanct tenets of finance, there is a long history of divided opinion among leading academics on this issue, eloquently captured in the book “The Myth of Rational Markets” by Justin Fox.