Increasing market volumes and democratising capital market access for all market participants
SINGAPORE, May 10, 2022 — Helixtap Technologies, the pioneers of groundbreaking, AI-driven price and market intelligence for the rubber industry, today announces a partnership with ICDX, the Indonesia Commodity and Derivatives Exchange, to create an exchange traded rubber product. The partnership will address the growing need for improved capital market access and connectivity for all market participants, to improve trading volumes. As Indonesia is the second largest rubber producing nation globally , the rubber futures contract will be international by coverage and priced in US dollars.
This new derivatives product will allow rubber market participants more accuracy in hedging their products. It will be linked to Helixtap’s SIR20 FOB Belawan/Surabaya index, which will be used by ICDX as a basis for its settlement prices. Helixtap has been assessing physical rubber prices since January 2021, with pricing data dating back to 2015.
The contract has been approved by Indonesia’s Commodity Futures Trading Regulatory Agency (BAPPEBTI).
Rubber and commodities prices have been volatile in 2021 with increasing crude oil prices and exacerbating pre-existing COVID-19 aftereffects, such as supply chain disruptions. Effects have spanned from producers and tyre manufacturers to financial institutions and the automotive industry.
The Helixtap-ICDX derivatives product illustrates the rubber industry’s demand for innovative solutions adapting to changing market needs, allowing participants to manage volatility and more accurately price contracts.
“The depth of expertise that Helixtap brings, across price assessments, data, and credibility in the rubber industry, made them our natural partner of choice for the development of this new financial product and to support innovation in the rubber industry with better future contract terms and improved pricing, enabling wider market participation.” Lamon Rutten, CEO of ICDX.
Farah Miller, CEO of Helixtap Technologies, adds: “We are committed to supporting a more inclusive rubber industry. Working with ICDX to create a new product, focusing on the use of real-time data, and increasing the ability for all market participants to connect and benefit from rubber market activities, is at the core of our company’s mission.”