World's first synthetic rubber futures, options listed on Shanghai Futures Exchange

(ECNS) -- The Shanghai Futures Exchange (SFE) officially listed the world's first synthetic rubber futures and options for trading on Friday.

It is the first item with both futures and options listed on the SFE. Synthetic rubber futures were listed at 9 a.m., while synthetic rubber options are set to debut at 9 p.m. the same day.

China is the world's largest producer, consumer, and importer of synthetic rubber, according to the SFE. 

In 2022, China's synthetic rubber production and apparent consumption reached 4.84 million and 5.45 million metric tons, accounting for 23 percent and 35 percent of the global total, respectively.

The launch of synthetic rubber futures and options will help improve the market-oriented pricing mechanism and promote transformation and upgrading of the rubber and tire industry through market means, said Tian Xiangyang, head of the SFE at the listing ceremony.

The launch not only provides new market-oriented tools for enterprises in the synthetic rubber industry to conduct risk management and stabilize production and operations, but also further perfects the sequence of energy and chemical futures products, said Zhao Jungui, vice president of the China Petroleum and Chemical Industry Federation.

"Currently, the design of synthetic rubber futures and options contracts, as well as the establishment of related trading, delivery, and risk control rules, follow the operational rules of the industry and spot market. This provides a good institutional guarantee for real enterprises to better use the futures market to manage price risks," said Lao Hongbo, vice president of CIEC based in Hangzhou, Zhejiang Province.