The Osaka Exchange, a part of the Japan Exchange Group, is set to introduce Shanghai Natural Rubber Futures on May 26, 2025. These cash-settled futures will be based on the price of Natural Rubber Futures listed on the Shanghai Futures Exchange (SHFE). The agreement for this initiative was formalized through a signing ceremony for the License Agreement between SHFE and Osaka Exchange in Shanghai.

By launching the Shanghai Natural Rubber Futures, Osaka Exchange aims to offer hedging instruments to mitigate price volatility risks for Japanese and international companies holding natural rubber stocks in China. Additionally, this move is anticipated to create new arbitrage trading opportunities between the Japanese and Chinese rubber futures markets. Public feedback on this development is currently being solicited by Osaka Exchange.

Lu Dongsheng, the CEO of SHFE, highlighted the strong historical ties between Shanghai and Osaka, emphasizing the enduring friendship between the two cities and their respective exchanges. The collaboration between SHFE and Osaka Exchange is expected to facilitate the dissemination of Chinese price data to businesses in Japan and globally, enhancing access to pricing information and risk management tools for companies worldwide. This partnership is poised to strengthen the bond between Shanghai and Osaka, as well as between SHFE and Osaka Exchange.

Yokoyama Ryusuke, President & CEO of Osaka Exchange, expressed his satisfaction with the upcoming listing of Shanghai natural rubber futures, attributing it to the longstanding relationship between SHFE and Osaka Exchange. He emphasized the significance of Asia, particularly Japan, in the global natural rubber futures market, noting Japan’s extensive history in rubber trading since 1952. The liquidity of natural rubber futures on the Shanghai Futures Exchange was underscored as pivotal for procurement and price hedging activities.

The collaboration between Osaka Exchange, boasting the world’s oldest rubber market, and SHFE, renowned for having the largest rubber market globally, is deemed crucial for advancing the global rubber futures market. The introduction of Shanghai natural rubber futures is expected to broaden trading opportunities for various market participants, fostering increased liquidity and market growth in the rubber futures sectors of both countries.

In conclusion, the launch of Shanghai Natural Rubber Futures by the Osaka Exchange signifies a significant step towards enhancing risk management tools, fostering international collaborations, and expanding trading opportunities in the rubber futures markets of Japan and China.