The Osaka Exchange (OSE) is set to list Shanghai Natural Rubber Futures on May 26, 2025. These cash-settled futures will track the price of Natural Rubber Futures listed on the Shanghai Futures Exchange (SHFE). To formalize the partnership, SHFE and OSE recently held a signing ceremony in Shanghai, establishing a License Agreement for the Shanghai Natural Rubber Futures Delivery Settlement Prices.
OSE views the introduction of this product as an opportunity to offer hedging tools to manage price fluctuation risks for both Japanese and international companies holding natural rubber inventories in China. The move is expected to foster a new arbitrage trading ecosystem between Japanese and Chinese rubber futures markets.
The exchange is currently accepting public comments on the new listing.
Statements from Key Figures
Lu Dongsheng, CEO of SHFE, highlighted the 50-year friendship between Shanghai and Osaka in 2024, emphasizing the long-standing relationship between SHFE and OSE. He expressed optimism about the licensing agreement, which will allow both exchanges to bring Chinese pricing to global producers and consumers, providing enhanced risk management tools and price information. He also noted that this move would further strengthen the ties between Shanghai and Osaka, as well as SHFE and OSE, wishing for the success of the listing in 2025.
Yokoyama Ryusuke, President & CEO of OSE, expressed his enthusiasm about the upcoming listing, emphasizing the historical significance of Japan’s rubber futures market, which has operated since 1952 and remains a global benchmark. He pointed out that SHFE’s rubber futures market is the most liquid in the world and plays a critical role in procurement and price hedging. According to Yokoyama, the deeper collaboration between OSE, the world’s oldest rubber market, and SHFE, the largest, will significantly contribute to the global development of the rubber futures market. He believes the listing of Shanghai Natural Rubber Futures will increase trading opportunities, thereby enhancing liquidity and market growth in both countries’ rubber futures markets.
