World's 1st diamond exchange to debut here in September
THE Singapore Diamond Investment Exchange (SDIX) yesterday announced the launch of the world's first commodities exchange in physically settled diamonds here, which is targeted to go live in September.
Vertex Ventures Holdings, a fully owned venture capital subsidiary of Temasek Holdings, is an investor in SDIX.
The SDIX platform will utilise proven exchange technology to create a new marketplace for the global diamond trade, and is designed to deliver price transparency and liquidity to the diamond market through a real-time price discovery mechanism, allowing diamonds to be traded as a commodity, thus enabling the creation of a new asset class, SDIX said in a statement.
The exchange will start with two dedicated physical vaults, one operated by Malca-Amit in Singapore Le Freeport and the other operated by Malca-Amit, within the Bharat Diamond Bourse in Mumbai.
It has potentially more than 25 pioneer members for the launch, comprising approved suppliers and broker members, including Paragon Diamonds, Kiran Gems and UOB Kay Hian.
SDIX chief executive Linus Koh said that the exchange aims to become the authoritative source of price information in diamond trading.
Looking ahead, Mr Koh said that the exchange platform can be extended with new instruments such as futures and diamond derivatives.
Said Chua Kee Lock, group president and CEO of Vertex: "With its innovative exchange-based business model, SDIX is set to transform the way diamonds are traded and potentially jump-start the growth of the polished diamonds industry globally."
THE BUSINESS TIMES