Core Viewpoint - The listing of Shanghai natural rubber futures in Osaka is expected to enhance the Japanese futures market and expand trading opportunities in the region [1] Group 1: Market Expansion - The introduction of Shanghai natural rubber futures in the Osaka market signifies a strategic move to broaden the scope of futures trading in Japan [1] - This development is anticipated to attract more investors and increase liquidity in the Japanese derivatives market [1] Group 2: Industry Impact - The listing is likely to create a more competitive environment for rubber trading, potentially benefiting both domestic and international traders [1] - It reflects a growing trend of cross-border collaboration in commodity markets, which may lead to more diversified investment options [1]

Core Viewpoint - The listing of the "Shanghai Natural Rubber Futures" contract on the Osaka Exchange (OSE) marks a significant milestone in the deepening cooperation between China and Japan's capital markets, facilitating the global service of "Chinese prices" [1][2]. Group 1: Contract Details - The first batch of listed contracts includes three monthly contracts expiring in September 2025, January 2026, and May 2026, with a total trading volume of 322 lots and an open interest of 152 lots on the first trading day [1]. - The contract is designed to use the settlement price of the Shanghai Futures Exchange (SHFE) natural rubber futures in Renminbi as the cash settlement benchmark, multiplied by 100 Japanese Yen, eliminating currency conversion and tax deductions [2]. Group 2: Market Impact - The collaboration is seen as a practical measure for the high-level opening of China's futures market, providing richer risk management options for global rubber industry chain enterprises [2]. - The OSE CEO highlighted that this contract combines Japan's diverse hedging tools with China's robust growth advantages, broadening hedging channels for Japanese industry clients and global investors [2]. Group 3: Industry Response - Notable rubber producers such as Lianrun Rubber and Shidong Rubber expressed that the direct linkage to "Shanghai rubber" prices and the convenient cash settlement method provide new pathways for risk management and asset allocation in international trade [2]. - Several international investment institutions plan to actively participate in the new contract to achieve cross-market resource integration [2].

Core Viewpoint - The listing of the "Shanghai Natural Rubber Futures" contract on the Osaka Exchange marks a significant milestone in the deepening cooperation between China and Japan's capital markets, facilitating the global service of "Chinese prices" [1][2]. Group 1: Contract Details - The "Shanghai Natural Rubber Futures" contract is linked to the Shanghai Futures Exchange's natural rubber futures prices and was officially listed on May 26 [1]. - The first batch of contracts includes three monthly contracts expiring in September 2025, January 2026, and May 2026, with a total trading volume of 322 lots and an open interest of 152 lots on the first day [1]. - The contract is designed to use the settlement price of the Shanghai Futures Exchange's natural rubber futures in RMB as the cash settlement benchmark, multiplied by 100 Japanese yen, eliminating currency conversion and tax deductions [1]. Group 2: Market Context and Implications - China is the world's largest importer and consumer of natural rubber, and the "Shanghai Natural Rubber Futures" contract has become the most liquid rubber futures contract globally, serving as a pricing benchmark for the rubber industry [2]. - Japan, as a major consumer and a strong player in the rubber industry, will benefit from this contract by providing diverse pricing information and risk management tools to both domestic and international enterprises [2]. - The contract is expected to cater to various market needs, including price risk management for overseas investors, arbitrage opportunities across different markets, asset allocation by overseas asset management institutions, and investment trading demands [2]. Group 3: Future Prospects and Strategic Goals - The collaboration is seen as a practical step towards high-level opening-up of China's futures market, aiming to provide richer risk management options for global rubber industry players [2][3]. - The listing is viewed as a breakthrough for the internationalization of Chinese futures standards, with plans for further cooperation with international institutions and the expansion of more products to align with global markets [3][4]. - The Shanghai Futures Exchange aims to enhance its cross-border delivery capabilities and improve the global investor participation mechanism in price formation [4].

Core Viewpoint - The listing of the "Shanghai Natural Rubber Futures" contract on the Osaka Exchange (OSE) marks a significant step in the internationalization of "Chinese prices," providing diversified pricing information and risk management tools for enterprises in China and abroad [1][4]. Group 1: Market Development - The "Shanghai Natural Rubber Futures" contract is based on the settlement price of the Shanghai Futures Exchange (SHFE) and is settled in Japanese yen, utilizing a cash settlement method [1]. - The introduction of this contract allows the "Chinese price" to be transmitted to more countries and regions, enhancing the connectivity between the capital markets of China and Japan [1]. Group 2: Market Participation - OSE has received support from major brokers and market makers for the newly listed SHFE natural rubber futures product, with at least seven market makers registered to ensure smooth trading [2]. - Shenzhen Qianhai Jingyou Trading Co., a Chinese market maker, is among those participating, leveraging its proprietary trading risk control system for market-making activities [2]. Group 3: Opportunities and Challenges - The company involved in market-making sees significant potential in the internationalization of "Chinese prices" and has proactively engaged with OSE to establish market-making arrangements [3]. - Challenges include delays in market data transmission, coordination difficulties among international custodians, and technical bottlenecks due to a three-tier settlement structure [3]. Group 4: Internationalization Practices - The authorization of the futures delivery settlement price is a crucial practice for the internationalization of "Chinese prices," allowing foreign exchanges to directly use domestic futures contract settlement prices [4]. - The listing of the "Shanghai Natural Rubber Futures" contract on OSE is part of a broader trend, following similar initiatives with other commodities, enhancing global investors' ability to reference and utilize SHFE prices for investment and risk management [4].

Core Viewpoint - The listing of "Shanghai Natural Rubber Futures" on the Osaka Exchange marks a significant step in enhancing the international influence of Shanghai's pricing in the global rubber market [1][2]. Group 1: Market Development - Natural rubber is recognized as one of the four major industrial raw materials globally, alongside oil, steel, and coal [2]. - Since its launch in 1993, the Shanghai natural rubber futures market has seen substantial growth, becoming the world's leading market for natural rubber derivatives [2]. - In 2024, the cumulative trading volume of Shanghai natural rubber futures reached 108 million contracts, with a total trading value of 17.36 trillion yuan, reflecting year-on-year increases of 24.1% and 53.4%, respectively [2]. Group 2: International Collaboration - The collaboration with the Osaka Exchange is part of China's efforts to open its futures market to the world, providing more risk management options for global rubber industry players [2][4]. - The first contracts listed on the Osaka Exchange are for the months of September 2025, January 2026, and May 2026, with an initial trading volume of 322 contracts and an open interest of 152 contracts on the first day [3]. Group 3: Price Authorization - Price authorization has emerged as a key method for the Chinese futures market to expand internationally, allowing foreign exchanges to link to domestic futures prices [4][5]. - The Shanghai Futures Exchange previously authorized the settlement price for pulp futures to the Norwegian Pulp and Paper Exchange, marking the first direct application of Chinese futures prices in international financial markets [4]. - Experts believe that price authorization enhances the international dissemination and influence of Chinese futures prices, making "Chinese prices" a significant reference in global commodity trade [5].

Core Insights - The Osaka Exchange officially listed the "Shanghai Natural Rubber Futures" contract on May 26, 2025, marking a significant milestone in the cooperation between Chinese and Japanese capital markets [1][2] - The contract is linked to the Shanghai Futures Exchange's natural rubber futures price, facilitating international market participants to reference Chinese natural rubber prices [2][3] Group 1: Contract Details - The contract is designed to use the Shanghai Futures Exchange's natural rubber futures delivery settlement price in RMB as the cash settlement basis, multiplied by 100 yen for settlement [2] - This arrangement eliminates currency conversion and tax deductions, providing transparent pricing and convenient trading for global industry chain enterprises and investors [2] Group 2: Market Impact - The listing of the contract is seen as a practical measure for China's futures market to open up at a high level, offering richer risk management options for global rubber industry chain enterprises [2][3] - The first listed contracts are set to expire in September 2025, January 2026, and May 2026, with a total trading volume of 322 lots and an open interest of 152 lots on the first trading day [3] Group 3: Industry Reactions - Industry leaders, including the president of the China Rubber Industry Association, praised the collaboration for stabilizing the global natural rubber industry chain [3] - Notable rubber manufacturers expressed that the direct linkage to "Shanghai Rubber" prices and the convenient cash settlement method provide new pathways for risk management and asset allocation in international trade [3] Group 4: Future Prospects - The Shanghai Futures Exchange plans to continue strengthening practical cooperation with international institutions and expanding pathways for opening up [3] - The initiative aligns with the 2024 State Council's support for domestic and foreign exchanges to deepen cooperation and allow foreign markets to link with domestic futures prices [3]