Today, Osaka Exchange, Inc. (OSE) listed Shanghai Natural Rubber Futures.
Shanghai Natural Rubber Futures are cash-settled futures whose underlier is the price of Natural Rubber Futures listed on the Shanghai Futures Exchange (SHFE).
In connection with the product’s listing, a ceremony was held at the Atrium on the 1st Floor of the Osaka Securities Exchange Building.
OSE believes that this product can provide a hedging tool for Japanese and overseas corporations to manage price fluctuation risks in their natural rubber inventories in the People’s Republic of China as well as contribute to improving the liquidity of OSE’s existing rubber futures through arbitrage trading that takes advantage of price differences between the Chinese and Japanese natural rubber futures markets.
Lu Dongsheng, CEO of SHFE, commented:
“This collaboration between SHFE and OSE is a concrete step taken by the Chinese futures market toward high-standard opening up. The “Shanghai Rubber” price creates new risk management possibilities for rubber industries around the world. SHFE looks forward to further enhance the futures market’s ability to serve the real economy”.
