Osaka Exchange set to list Shanghai natural rubber futures

Osaka, Japan – Osaka Exchange (OSE) has confirmed that is launch new OSE Shanghai natural rubber futures, starting 26 May.

OSE announced the decision earlier in January, stating that offerings would be “cash-settled futures whose underlier is the price of NR futures listed on the Shanghai Futures Exchange (SHFE).

At the time, OSE said it expected that the new product to provide “hedging tools” to manage price fluctuation risks with Japanese and overseas corporations holding NR inventories in China.

The service will also provide “new arbitrage trading ecosystems” between Japanese and Chinese rubber futures markets.

The licensing agreement signed in January allows SHFE and OSE to leverage their market and industry positions to deliver Chinese prices to producers and consumers in Japan and beyond.

This, said Lu Dongsheng, CEO of SHFE, provides companies around the globe with additional price information and risk management tools.

Japan’s NR futures, according to OSE president and CEO Yokoyama Ryusuke, is “used by many stakeholders, including the demand side and the supply side… as one of the international benchmarks of RSS3.”

On the other hand, SHFE natural rubber futures have “the most liquidity” in the world and play an important role in procurement and price hedging, the OSE leader added.

The deal between “OSE, which has the world's oldest rubber market, and SHFE, which has the world's largest rubber market is extremely significant in the development of the world's rubber futures market,” he added.