World’s First Di­a­mond De­riv­a­tives Ex­change Launched In Mum­bai

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Adding a new leaf to the his­tory of In­dia’s com­mod­ity mar­kets, In­dian Com­mod­ity Ex­change Limited (ICEX), a screen-based on­line de­riv­a­tives ex­change for com­modi­ties, went live on Au­gust 28th. ICEX com­menced op­er­a­tions with the launch of Di­a­mond Fu­tures, which will be the world’s first de­riv­a­tives con­tracts in di­a­monds.

The ex­change was for­mally in­au­gu­rated at a func­tion held in Mum­bai. The event was graced by sev­eral prom­i­nent dig­ni­taries from the di­a­mond in­dus­try and the ex­change in­dus­try ecosys­tem, in­clud­ing chief guest Praveen­shankar Pandya, chair­man, Gem & Jew­ellery Ex­port Pro­mo­tion Coun­cil. Also present were V.N. Kaul, ex-comptroller and au­di­tor gen­eral of In­dia and in­de­pen­dent di­rec­tor of Re­liance Cap­i­tal, which is one of the prom­i­nent share­hold­ers of ICEX, and Anoop Me­hta, pres­i­dent, Bharat Di­a­mond Bourse (BDB).

Speak­ing on the oc­ca­sion, Pandya said, “I con­grat­u­late ICEX for the launch. I am sure the new ex­change will be able to make a mean­ing­ful con­tri­bu­tion to­wards fur­ther de­vel­op­ment of In­dia’s com­mod­ity mar­kets.”

Ashok Sinha, chair­man, ICEX added, “The vi­sion be­hind ICEX has been to es­tab­lish a world-class plat­form that of­fers de-risk­ing av­enues against the price va­garies in not only the In­dian man­u­fac­tur­ing sec­tor, but also in the agri­cul­tural sec­tor. We want to see that the ben­e­fit of ‘one In­dia-one price’ helps even small farm­ers.”

San­jit Prasad, MD & CEO of ICEX, said: “ICEX shall of­fer a fair, trans­par­ent and na­tion­wide mar­ket, bring­ing in large mar­ket par­tic­i­pa­tion into the di­a­mond trade. It shall re­sult in ef­fi­cient price dis­cov­ery and pro­vide an ef­fec­tive hedg­ing plat­form for all stake­hold­ers of the di­a­mond in­dus­try.”

ICEX brings to­gether tech­nol­ogy in terms of a trad­ing plat­form from Mil­len­nium IT (MIT), part of the Lon­don Stock Ex­change Group, renowned vault­ing ser­vices of­fered by Malca- Amit, and grad­ing cer­ti­fi­ca­tion by De Beers’ In­ter­na­tional In­sti­tute of Di­a­mond Grad­ing & Re­search (IIDGR).

The di­a­mond con­tracts launched by ICEX will ini­tially be of 1 carat with com­pul­sory de­liv­ery. This will cre­ate an en­tirely new mar­ket for the di­a­mond in­dus­try play­ers where the sell­ers can de­liver their cer­ti­fied qual­ity di­a­monds to dif­fer­ent set of buy­ers from across the coun­try.

The launch of Di­a­mond Fu­tures trad­ing on ICEX will lead to ef­fi­cient price dis­cov­ery based on de­mand and sup­ply fun­da­men­tals and a na­tion­wide mar­ket par­tic­i­pa­tion. To date, more than 100 mem­bers and around 4,000 clients have reg­is­tered with the ex­change.

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