SDiX Launching ‘World’s First Commodities Exchange in Physically Settled Diamonds’

(IDEX Online News) – Singapore Diamond Investment Exchange Pte Ltd (SDiX) has announced that it is launching the world’s first commodities exchange in physically settled diamonds in Singapore. The exchange is planned to operate from September 2015.

In a physically settled exchange, the buyer must take delivery of the commodity rather than cash upon the expiration or exercise of commodity futures contracts.

The fully electronic spot commodity exchange is designed to deliver price transparency and liquidity to the market. “It will provide a self-regulated marketplace for both diamond and financial traders as well as accredited investors to acquire stones at a market price that is driven by real time transactional data,” said founder, executive chairman and controlling shareholder Alain Vandenborre.

“This will result in the homogenization of diamonds, simplifying the manner in which they are valued and hence allowing them to be traded as a commodity.”

As part of its drive to secure a wide network of approved diamond suppliers, SDiX has established what it terms “a key strategic relationship with the Bharat Diamond Bourse (BDB)."

“SDiX’s exchange offers our members an additional channel to access diamond traders, including direct access to accredited financial investors and traders, and help generate additional revenue streams for our members,” said BDB president Anoop Mehta. “SDiX’s exchange platform will enable our members to better tap the opportunities in the market.”

SDiX will start with two dedicated physical vaults, both operated by Malca-Amit, in Singapore Le Freeport and within the BDB All of the diamonds listed on the SDiX will be graded by GIA.

The exchange said it potentially has more than 25 “Pioneer Members” for the launch, comprising both approved suppliers and broker members. They include: Paragon Diamonds, Kiran Gems Pvt. Ltd., SRK, Hari Krishna Exports Pvt. Ltd., Rosy Blue, Sheetal Group, Leo Schachter Diamonds, KP Sanghvi, Kapu Gems and UOB Kay Hian.

SDiX is not a World Federation of Diamond Bourses-affiliated exchange.