Singapore – August 12, 2019
Straits Financial Services Pte Ltd (“Straits Financial”) is among the first batch to successfully execute its first transaction for the TSR20 rubber futures contract, upon launch today on the Shanghai International Energy Exchange (“INE”). The trade was executed on behalf of R1 International Pte. Ltd., the world’s largest rubber trading company. The INE TSR20 rubber futures contract is yuan-denominated and physically settled. Similar to the INE crude oil futures, it is one of the few China-based contracts that allows international participation.
Straits Financial is actively engaged and abreast with China’s ambitions to internationalise its futures markets, by providing regulatory guidance to our clients and trading connectivity. We continue to receive strong demand and interest from our global customer base to trade the internationalised futures contracts. This is particularly significant in today’s international unilateralism and trade protectionism context.
Since the internationalisation of China’s future market, Straits Financial has successfully secured the first trades for new contract launched by INE, DCE and ZCE, despite stiff competition from international brokers. Xinhu Futures Co., Ltd. has played an indispensable role in our success story.
The TSR20 rubber has been a prominent grade of natural rubber in the global industry today, with 80% of the tire manufacturers using TSR 20 rubber. As the world’s largest tire manufacturer, China is the largest importer and consumer of TSR 20 rubber. The INE’s rubber contract launch signals Shanghai’s bid to enhance its global pricing power. The contract will provide new hedging and arbitrage opportunities for the rubber industry. Straits Financial has been an active member in the international rubber derivatives market for many years and commands a significant market share in the Singapore Exchange (SGX) and Tokyo Commodity Exchange (TOCOM) for rubber futures and options.
Mr. Sandana Dass, CEO of the R1 International, commented, “I believe that the TSR 20 futures contract introduction in SHFE in the world's biggest rubber consuming and meaningful rubber producing country will reflect a transparent, efficient and liquid price discovery mechanism for global rubber industry and benefit all its stakeholders.”
R1 International is the world market leader in the value chain management of Natural Rubber; offering a plethora of grades from diverse originations, to its customers globally; addressing their raw material needs in natural rubber and creating value through its risk management solutions. R1 is the international subsidiary company of China Hainan Rubber Industry Group, a China-based company principally engaged in planting, processing and distribution of NR and rubber products. R1 is headquartered in Singapore and operates with offices in 9 major rubber producing and consuming countries.
About Xinhu Futures
Founded in 1995 and based in Shanghai, China. Xinhu Futures Co.,Ltd. operates nationwide with 26 branches, as well as one risk management business subsidiary and a global business subsidiary based in HK. Xinhu Futures is the clearing member of the Dalian Commodity Exchange (DCE), Zhengzhou Commodity Exchange (ZCE), Shanghai Futures Exchange (SHFE) and Shanghai International Energy Exchange (INE). Xinhu Futures is also the general clearing member of China Financial Futures Exchange (CFFEX).
International business of Xinhu Futures is the core of its globalization strategy. Xinhu offers professional trading and consulting services of crude oil, iron ore, PTA and rubber futures to overseas investors.
About Straits Financial Group
Headquartered in Singapore, Straits Financial Group is the brokerage house under CWT Pte. Limited that offers a full spectrum of derivatives & OTC products, including trade facilitation for physical commodities. Established affiliate offices are in Chicago, New Jersey, Shanghai and in Jakarta. Straits Financial is a full Clearing Member of the Chicago Mercantile Exchange (CME), Chicago Board of Trade (CBOT), New York Mercantile Exchange (NYMEX), the Commodity Exchange (COMEX), CME Clearport, Dubai Mercantile Exchange (DME), New Zealand Exchange (NZX), CBOE Futures Exchange (CFE), Nasdaq Futures (NFX) and Asia Pacific Exchange (APEX). It is also the first batch of Overseas Broking Special Participant of the Shanghai International Energy Exchange (INE). Straits Financial offers clearing access to all major global commodity exchanges. For more information, visit www.straitsfinancial.com.
DISCLAIMER: This document is issued for information purposes only. This document is not intended, and should not under any circumstances to be construed as an offer or solicitation to buy or sell, nor financial advice or recommendation in relation to any capital market product. All the information contained herein is based on publicly available information and has been obtained from sources that Straits Financial believes to be reliable and correct at the time of publishing this document. Straits Financial will not be liable for any loss or damage of any kind (whether direct, indirect or consequential losses or other economic loss of any kind) suffered due to any omission, error, inaccuracy, incompleteness, or otherwise, any reliance on such information. Trading commodity futures and options products presents a high degree of risk, and losses in excess of your initial investment may occur. Past performance or historical record of futures contracts, derivatives contracts, and commodities is not indicative of the future performance. The information in this document is subject to change without notice. The impact on market prices due to seasonal or market cycles and current news events may already be reflected in market prices.