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Straits Financial: Positive outlook for INE’s internationalised TSR20 rubber futures

Feb 27, 2020

On February 24, INE successfully completed the first delivery of the TSR 20 rubber futures. Mr. Roger Quek, Managing Director of Straits Financial (Singapore), shared his views in an interview with Futures Daily. “As the first batch of overseas intermediaries for INE, Straits Financial has been actively marketing the INE TSR 20 rubber futures contract to international market participants. Major overseas rubber producers and trading companies have expressed strong interest and we are seeing traction in the INE TSR20 futures contract.”  

At the interview, Mr Roger Quek also shared that the INE TSR20 rubber futures has its own unique characteristics and advantages. The contract has shorter delivery time and multiple settlement specifications, with delivery warehouses network in Qingdao, Shanghai and Hainan, are specifications which provide convenience for physical players to participate. In addition, the INE TSR20 warehouse receipt can be pledged as margin, which strengthens the financial function of the warehouse receipt and reduces cash flow pressures for producers and trading companies.

However, foreign investors must familiarize with certain unique features concerning INE’s trading, settlement, risk control and delivery systems. We are confident that with more publicity in the international markets and training, participation from overseas companies, institutions and investors are likely to increase. This is where we value add by guiding our customers through the regulatory hurdles and requirements.

Straits Financial is among the first batch to successfully execute its first transaction for the TSR20 rubber futures contract, upon launch on the Shanghai International Energy Exchange (“INE”) in August 2019. Straits Financial has also successfully secured the first trades for other internationalized contracts including the INE crude oil future, DCE iron ore futures and ZCE PTA futures.

Mr. Chen Ming, Chairman of Guangdong Guangken Rubber Group, Mr. Chen Zujing, Chairman of Hainan Rubber Group Shanghai Longking International, Mr. Robert Meyer, CEO of Halcyon Agri and Mr. David Low, Executive Director of DBS Bank also gave their views and comments to Futures Daily. Read full article in Chinese here.

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.

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