Increase market volumes and democratize capital market access for all market participants
SINGAPORE, May 10, 2022 /PRNewswire/ — Helixtap Technologies, the pioneers of breakthrough AI-based 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 to improve capital market access and connectivity for all market participants to improve trading volumes. As Indonesia is the second largest rubber producing country in the world the rubber futures contract will have international coverage and will be denominated in US dollars.
This new derivative product will allow players in the rubber market to be more precise in the coverage of their products. It will be connected to the SIR20 FOB Belawan of Helixtap/Surabaya index, which will be used by ICDX as the basis for its settlement prices. Helixtap has been evaluating physical rubber prices for January 2021with pricing data going back to 2015.
The contract was approved by indonesia Commodity Futures Regulatory Agency (BAPPEBTI).
Rubber and commodity prices have been volatile in 2021 with rising crude oil prices and exacerbate pre-existing sequelae of COVID-19, such as supply chain disruptions. The effects have spread from tire producers and manufacturers to financial institutions and the automotive industry.
The Helixtap-ICDX derivative illustrates the rubber industry’s demand for innovative solutions that adapt to changing market needs, enabling participants to manage volatility and price contracts more accurately.
“The depth of expertise that Helixtap brings, through price assessments, data and credibility in the rubber industry, has 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 greater market participation.” Lamon RuttenCEO of ICDX.
Farah MillerCEO 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 capacity of all market players to connect and benefit from rubber market activities, is at the heart of our company’s mission.”
SOURCE Helixtap Technologies