Core Insights - The article discusses the significant growth of the off-exchange derivatives trading business by risk management subsidiaries of futures companies in China, which has increased by 8.8% since the beginning of 2025, driven by the need for customized risk management solutions for real enterprises facing external shocks and market volatility [1][2]. Group 1: Market Trends - As of April 18, 2025, the nominal principal of commodity off-exchange derivatives held by risk management subsidiaries reached 228.03 billion yuan, reflecting an increase of 18.53 billion yuan since January 20, 2025, when Trump took office, marking an approximate growth of 8.8% [2]. - The demand for hedging has surged due to intensified market fluctuations caused by trade policies, with some companies reporting a 40% increase in their off-exchange derivatives positions in April 2025 [2][5]. Group 2: Client Demographics - The primary clientele for these off-exchange derivatives are real enterprises, with over 95% being private small and medium-sized enterprises (SMEs), which often struggle with the standardized nature of traditional futures contracts [2][3]. - Customized derivatives can address the specific needs of SMEs, providing tailored solutions for price fluctuations and exchange rate risks [2][4]. Group 3: Risk Management Solutions - Off-exchange derivatives have proven effective for SMEs, allowing them to manage risks without the high capital requirements and expertise typically needed for direct participation in futures markets [4][6]. - Examples include a petrochemical company using vanilla options to secure higher selling prices and a private steel mill locking in future prices to avoid rising procurement costs [3][5]. Group 4: Future Outlook - The market for off-exchange derivatives is expected to continue expanding, driven by the increasing complexity of the macroeconomic environment and the need for effective risk management strategies among enterprises [6]. - The unique advantages of off-exchange derivatives, such as preemptive risk control, position them as essential tools for enterprises aiming to enhance their competitiveness and navigate global market uncertainties [6].