Indian Commodity Exchange Limited (ICEX), a screen-based online derivatives exchange for commodities, has commenced operations with the launch of Diamond Futures – the world’s first derivatives contract in diamonds.
Reliance Capital is a major stakeholder in ICEX, along with wider set of shareholders. The commodities derivatives exchange will be regulated by SEBI.
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The newly launched diamond contracts will initially be in 1 carat size 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,” ICEX said in a press note.
Over 100 members and nearly 4,000 clients have registered with the exchange till now.
Commenting on the launch, ICEX MD & CEO Sanjit Prasad 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 MALCAAMIT and credible grading certification by IIDGR. This will fulfill the objectives and standards as set up by the Regulator and the Government of India.”
