Big market news! On Monday, the Shanghai natural rubber futures were officially listed on Japan's Osaka Exchange, marking a milestone in collaboration between the Chinese mainland and Japan. This move brings transparent Chinese pricing to the global stage and is already sparking excitement among traders and industry watchers. 🚀
The new contract is designed for simplicity and efficiency. It is cash-settled using the delivery settlement price from the Shanghai Futures Exchange multiplied by 100 Japanese yen (approximately $0.7). This approach cuts out the need for exchange rate conversions and duty calculations, offering a clear and accessible risk management tool for hedging, cross-market arbitrage, and investment strategies worldwide.
Lu Dongsheng, CEO of the Shanghai Futures Exchange, highlighted at the listing ceremony that this cooperation is a concrete step toward high-standard opening-up. He pointed out that the Shanghai rubber price now creates exciting new possibilities for risk management in the global rubber industry, paving the way for more cross-border partnerships.
The listing debuted with three monthly contracts expiring in September 2025, January 2026, and May 2026. On the first trading day, the cumulative trading volume reached 322 lots with an open interest of 152 lots, underlining strong initial interest.
With supportive guidelines from the State Council in 2024 encouraging such domestic and overseas collaborations, this breakthrough not only strengthens market integration but also sets the stage for future innovations in international finance. Stay tuned for more updates in this dynamic financial landscape!
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Shanghai natural rubber futures listed on Japan's Osaka Exchange
cgtn.com
