PTI: August 29, 2017
Mumbai: The Anil Ambani Group-anchored Indian Commodity Exchange (ICEX) today became the world's first derivatives exchange to launch diamond futures contract.
"We successfully launched diamond futures trading today The contracts are initially launched in size of 1 carat with compulsory delivery. This will create an entirely new market for the diamond players where sellers can deliver their certified diamonds to different buyers," ICEX managing director Sanjit Prasad told reporters.
The diamond futures contract has a potential of trading volume of Rs 5,000 crore per day, Prasad added.
The launch will also lead to efficient price discovery based on demand and supply and a nationwide market participation. Till date, over 100 members and around 4,000 clients have registered with the exchange.
The exchange will offer a fair, transparent and nationwide market, bringing in large market participation into diamond trade. It will result in efficient price discovery and provide an effective hedging platform for all stakeholders, exchange chairman Ashok Sinha said.
The new exchange will be able to make a meaningful contribution towards further development of commodity markets, Gems & Jewellery Export Promotion Council chairman Praveen Shankar Pandya said.
ICEX is powered by technology from MillenniumIT (MIT), part of the London Stock Exchange Group while International Institute of Diamond Grading & Research, a part of the DeBeers Group, certifies diamonds for the exchange delivery.
After launching monthly contracts, the exchange plans to launch contracts for 50 cents and 30 cents with compulsory delivery in electronic units in the near future, for which it has already received Sebi permission.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.