Osaka Exchange: Launch Of Shanghai Natural Rubber Futures

Osaka Exchange ("OSE") will list Shanghai Natural Rubber Futures, which are cash-settled futures whose underlier is the price of Natural Rubber Futures listed on the Shanghai Futures Exchange (SHFE) on May 26, 2025 (planned). And SHFE and OSE held a signing ceremony for License Agreement regarding the Shanghai Natural Rubber Futures Delivery Settlement Prices between SHFE and OSE in Shanghai.

OSE believes by introducing this product, OSE can provide hedging tools to manage price fluctuation risks with Japanese and overseas corporations holding natural rubber inventories in the People's Republic of China as well as new arbitrage trading ecosystems between Japanese and Chinese rubber futures markets.
※OSE is accepting public comments regarding this matter.

Comments by Lu Dongsheng, CEO of SHFE

The year 2024 marked the 50 years anniversary of official friendship between the city of Shanghai and the city of Osaka, a friendship that continues to thrive and also long exists between Shanghai Futures Exchange and Osaka Exchange.

Today’s licensing agreement allows SHFE and OSE to leverage their market and industry positions to deliver Chinese prices to producers and consumers in Japan and beyond. This provides companies around the globe with additional price information and risk management tools.

It also promises to further strengthen the ties between Shanghai and Osaka and between SHFE and OSE.
Wish the listing of the Shanghai natural rubber futures contract on Osaka Exchange on May 26, 2025 a great success!

Comments from Yokoyama Ryusuke, President & CEO of OSE

I am very glad to announce that OSE will list Shanghai natural rubber futures on May 26 as a result of long-term friendship between SHFE and OSE.
The center of the global natural rubber futures market is Asia and Japan's natural rubber futures market, which starting trading in 1952 has the longest history among the world. It is used by many stakeholders, including the demand side and the supply side, and is recognized as one of the international benchmarks of RSS3. On the other hand, natural rubber futures on Shanghai Futures Exchange have the most liquidity among the world. It plays an important role in procurement and price hedging.

In this way, I believe that deepening the relationship 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.

I believe that listing Shanghai natural rubber futures will expand trading opportunities for various market participants, resulting in further liquidity expansion and market development in the rubber futures markets of both countries.