ICEX Launches World’s First Diamond Derivatives Exchange
Indian Commodity Exchange Ltd (ICEX) has launched a screen based online derivatives exchange for commodities on Monday (28 August). They also launched world’s first derivatives contracts in diamonds known as Diamond Future.
The diamond contracts launched by ICEX initially is in size of 1 carat with compulsory delivery. They aim to create a new market for the diamond industry players where the sellers can deliver their certified quality of diamonds to different set of buyers across the country.
The procedure of the Diamond Futures trading on ICEX can lead to efficient price discovery, based on demand and supply fundamentals, and can bring many players on board.
Sanjit Prasad, MD & CEO of ICEX, said, “ICEX shall offer a fair, transparent and nationwide market, bringing in efficient price discovery, large market participation into diamond trade, and an effective hedging platform for all stakeholders of the industry. ICEX brings together the best technology in terms of trading platform from MillenniumIT, renowned vaulting services offered by MALCA-AMIT and credible grading certification by IIDGR. This will fulfill the objectives and standards as set up by the regulator and the government of India.”
Securities and Exchange Board of India (SEBI) regulated Commodities Derivatives Exchange (ICEX) is set up by large public sector institutions – MMTC, KRIBHCO, Indian Potash Ltd and IDFC Bank and private sector institutions like Reliance Exchange Next Ltd and Indiabulls Housing Finance Services to provide a hedging platform to the commodities market.
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.”
Speaking at the occasion Praveen Shankar Pandya, Chairman, Gems & Jewellery Export Promotion Council, 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.”
