Osaka Exchange, a subsidiary of Japan Exchange Group, is set to introduce Shanghai Natural Rubber Futures on May 26, 2025. This move comes following a signing ceremony between the Shanghai Futures Exchange (SHFE) and Osaka Exchange, solidifying a License Agreement for the Shanghai Natural Rubber Futures Delivery Settlement Prices.

The introduction of these cash-settled futures, linked to the prices of Natural Rubber Futures on the SHFE, opens up new avenues for hedging against price fluctuations for Japanese and international companies managing natural rubber inventories in China. Moreover, this initiative aims to foster arbitrage trading opportunities between the Japanese and Chinese rubber futures markets.

Lu Dongsheng, the CEO of SHFE, emphasized the significance of this agreement in enhancing market transparency and risk management tools for global companies. He highlighted the longstanding friendship between Shanghai and Osaka, mirroring the enduring relationship between the two exchanges. The collaboration between SHFE and OSE is poised to strengthen ties between the two cities and exchanges, ultimately benefiting market participants worldwide.

Yokoyama Ryusuke, President & CEO of Osaka Exchange, expressed enthusiasm about listing the Shanghai natural rubber futures, underscoring the historical importance of the Asian natural rubber futures market. With Japan’s natural rubber futures market boasting a rich legacy since 1952 and serving as an international benchmark, the partnership with SHFE, renowned for its market liquidity, holds strategic significance.

The convergence of OSE’s historical expertise in the rubber market with SHFE’s market dominance is expected to propel the global rubber futures market forward. The listing of Shanghai natural rubber futures is anticipated to create a more diverse trading landscape, attracting a broad spectrum of market participants and driving liquidity growth in both countries’ rubber futures markets.

This strategic move by Osaka Exchange aligns with Japan Exchange Group’s commitment to fostering market innovation and enhancing trading opportunities for market players. By expanding its product offerings to include Shanghai Natural Rubber Futures, Osaka Exchange is not only enriching its portfolio but also contributing to the evolution of the global rubber futures market.

In conclusion, the collaboration between SHFE and OSE signifies a milestone in the convergence of Asian rubber futures markets, promising increased market efficiency, risk management capabilities, and trading opportunities for stakeholders across borders. The listing of Shanghai Natural Rubber Futures on Osaka Exchange heralds a new era of cooperation and growth in the rubber futures landscape.