Osaka Exchange (OSE) is gearing up for the launch of Shanghai Natural Rubber Futures, a move set to introduce cash-settled futures linked to the price of Natural Rubber Futures on the Shanghai Futures Exchange (SHFE) on May 26, 2025. The collaboration between SHFE and OSE was solidified through a License Agreement signing ceremony in Shanghai, paving the way for a new avenue of risk management for Japanese and overseas entities holding natural rubber stocks in China.
This strategic initiative by OSE is viewed as a pivotal step in fostering arbitrage trading opportunities between Japanese and Chinese rubber futures markets, offering a platform for hedging against price fluctuations. The introduction of Shanghai Natural Rubber Futures is anticipated to cater to the diverse needs of corporations seeking risk mitigation tools within the natural rubber sector.
Lu Dongsheng, CEO of SHFE, emphasized the historic ties between Shanghai and Osaka, cities that have enjoyed a flourishing friendship for over 50 years. The licensing agreement between SHFE and OSE is poised to leverage their respective market strengths to disseminate Chinese price data to stakeholders in Japan and beyond, enhancing global companies’ access to price information and risk management mechanisms.
Yokoyama Ryusuke, President & CEO of OSE, expressed his delight in unveiling the forthcoming listing of Shanghai natural rubber futures, underscoring the profound relationship between SHFE and OSE. The collaboration between OSE, boasting the world’s oldest rubber market, and SHFE, renowned for its robust rubber market liquidity, holds significant promise for advancing the global rubber futures landscape.
The Asia-Pacific region has long been a focal point for the natural rubber futures market, with Japan’s market tracing back to 1952, making it a venerable player in the industry. The Shanghai Futures Exchange stands out for its substantial liquidity, playing a critical role in procurement and price risk mitigation. The convergence of these two market leaders is expected to unlock fresh trading opportunities for a diverse array of market participants, fostering increased liquidity and market growth in both countries’ rubber futures sectors.
As OSE prepares to list Shanghai Natural Rubber Futures, the stage is set for an innovative chapter in the realm of rubber futures trading, offering stakeholders a sophisticated platform for managing risks and exploring new market dynamics. The partnership between SHFE and OSE not only symbolizes a convergence of markets but also signifies a step towards enhancing global trade connections and fortifying the backbone of the rubber industry.
The collaboration between these exchanges holds the promise of deepening ties between Japan and China, two key players in the global commodities market, and sets a precedent for future cross-border partnerships that could shape the trajectory of the commodities trading landscape. With the launch of Shanghai Natural Rubber Futures on the horizon, the industry is poised for a transformative shift, heralding a new era of opportunities for market participants seeking to navigate the intricacies of the natural rubber market.