ERJ staff report (TP)
Jakarta − The Jakarta Futures Exchange has received government backing to launch a rubber futures contract as Indonesia moves to secure itself a bigger role in pricing commodities, reported Yayat Supriatna for Reuters.
In recent years Southeast Asia's largest economy has launched several commodity contracts, with limited success due to a failure to attract liquidity. But a 30 August rule forcing tin producers to trade on a domestic exchange before shipping could change this.
“Commodity Futures Trading Regulatory Agency (COFTRA) will boost commodity futures trading at local exchanges in an effort to create price references locally and to provide services for commodity business people in hedging their commodities,” Sutriono Edi, head of Indonesia's COFTRA,” said.
”For this we have approved two new commodity contracts − coffee and rubber − to be traded on the Jakarta Futures Exchange,” he added.
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Full story from Reuters