Monday, August 28, 2017

ICEX World's first diamond derivatives exchange

ICEX ( Indian Commodity Exchange ) commences operations with the launch of diamond futures contracts.  ICEX will provide fair price discovery and price hedging platform for the diamond industry. Nationwide trade participation shall lead to efficient price discovery based on demand and supply fundamentals. 

ICEX is powered by technology from MillenniumIT ( MIT ) , part of the London Stock Exchange group. 

INTERNATIONAL INSTITUTE OF DIAMOND GRADING & RESEARCH (IIDGR), part of DE BEERS Group , to certify diamonds for the exchange delivery .

MALCA-AMIT, a Global vaulting agency for diamonds shall handle vaulting and logistics.

 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 today. 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 today. The event was graced by several prominent dignitaries from the diamond industry and the exchange industry ecosystem, including Mr. Praveen Shankar Pandya, Chairman, Gems & Jewellery Export Promotion Council, who served as the chief guest. Also present were, Mr. 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 Mr. Anoop Mehta, President, Bharat Diamond Bourse (BDB).

Speaking on the occasion, Mr. 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.”
Mr. 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.”

Highlighting the importance of the exchange, Mr. V N Kaul said, “Launch of ICEX will give a further fillip to Indian trade and commerce and help in harnessing the true potential of the Indian commodity derivatives market.”

Mr. Sanjit Prasad, MD & CEO of ICEX, said: “ICEX shall offer a fair, transparent and nationwide market, bringing in large market participation into 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 the best technology in terms of trading platform from MIT, 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.”

The diamond contracts launched by ICEX initially is in size 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. Till date, 100+ members and around 4,000 clients have registered with the exchange.

MillenniumIT (MIT) : MillenniumIT is a leading innovative trading technology business. MillenniumIT's software platforms are fully fault tolerant where immediately available replica processes ensure uninterrupted trading even in the face of software or hardware outages. MillenniumIT’s systems are used by exchange businesses around the world including London Stock Exchange, the London Metal Exchange, Borsa Italiana, Oslo Børs, Turquoise, Johannesburg Stock Exchange and a series of emerging market exchanges.

Malca-Amit provides the highest standard of secure logistical solutions for the diamond and jewellery industries worldwide, and those dealing with valuable assets. Malca-Amit’s highly-secured, strategically located storage facilities are recognized as market leaders. Numerous facilities are located in free trade zones and others are strategically positioned around the globe- Bangkok, Hong Kong, London, New York, Shanghai, Singapore, Toronto and Zurich.

International Institute of Diamond Grading & Research (IIDGR) : Established in 2008, The International Institute of Diamond Grading & Research (IIDGR) is a DeBeers Group of Companies, the organisation most closely associated with the mystique and science of diamonds. IIDGR has laboratories in three global locations, Antwerp, Surat and Maidenhead. Each location provides first class services in diamond grading and testing. With over 125 years of expertise, the experts use comprehensive analysis using a variety of different in-house and proprietary equipment to ensure that every diamond assessed is naturally occurring and untreated.

 Indian Commodity Exchange (ICEX) Limited is a SEBI regulated Commodities Derivatives Exchange.
Reliance Capital, a part of Anil Ambani led Reliance Group, is a prominent shareholder in ICEX, along with wider and more diverse set of shareholders.

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