World’s First Diamond Derivatives Exchange Launched In Mumbai
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.