The diamond contracts which were launched on Monday are the first commodities derivatives contracts approved by Sebi after it took over the regulatory responsibilities from the erstwhile Forward Markets Commission (FMC) almost two years ago. “ICEX will start its trading operations on Monday, August 28 in Diamond Futures contracts”.
The Reliance ADAG-anchored Indian Commodity Exchange (ICEX) has started world’s first diamond futures exchange mock trading in India on Monday. They also launched world’s first derivatives contracts in diamonds known as Diamond Future.
SK Mohanty, Executive Director, SEBI, said it has received the application from MCX to launch diamond contract but is still under consideration.
The establishment of the futures exchange is the result of two-and-a-half years of planning and talks with the Ministry of Finance and the Securities and Exchange Board of India, Prasad said in the report.
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”.
The diamond industry consists of manufacturers or “diamantaires” (the term for owners of cutting and polishing units), wholesalers, traders, brokers, retailers and jewellery fabricators.
Initially, ICEX has launched one carat diamond contract expiring in November, December and January with a delivery centre in Surat.
On the first day of trading, till 9pm, more than 3,000 contracts were traded, implying trades aggregating over 30 carat equivalent of diamonds.
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