Osaka Exchange: Listing Of Shanghai Natural Rubber Futures

Today, Osaka Exchange, Inc. (OSE) has 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, we held a ceremony 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.
OSE will continue to strive to operate a highly convenient market by providing risk hedging opportunities and tools to investors in Japan and overseas.

Comments from Lu Dongsheng, CEO of SHFE

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.

Comments from Yokoyama Ryusuke, President & CEO of OSE

I am very happy to announce the listing of Shanghai Natural Rubber Futures. It is a historic moment and a culmination of our long-time friendly relationship with SHFE. Japan is the world's sixth-largest consumer of natural rubber and was the first country to begin rubber futures trading in 1952. Its rubber futures are now established as an international benchmark for RSS rubber. Meanwhile, China's rubber futures market has grown significantly in tandem with the remarkable development of its real economy, and it is recognized as the world's most liquid rubber futures market, attracting the attention of many market participants. I believe that the listing of Shanghai Natural Rubber Futures not only provides investors with a new way of accessing Shanghai’s rubber futures market but also contributes to the stabilization of global natural rubber futures prices through arbitrage trading. Furthermore, while Shanghai and Osaka are official friendship cities, I believe that the listing of this product will not only strengthen the relationship between the two cities but also contribute to the advancement of internationalization in Osaka Prefecture and Osaka City.