At present, with the acceleration of the reform of the electricity market, the integration of the demand side manage?ment and the financial derivative market will promote the develop?ment of the electricity market.Based on the analysis of the develop?ment of the European electricity financial derivative market, the inte?gration of financial derivatives and demand side management is stud?ied.On the basis of the successful experience of the development of the financial derivative market in Europe, the realization path of the development of China’s electricity financial derivative market is de?signed, providing a reference for the development of China’s elec?tricity financial derivative market.