The Indian Commodity Exchange Limited (ICEX), a Reliance ADAG-anchored platform, today announced that it will launch the world’s first diamond futures contracts on August 28. ICEX had earlier received approval from the market regulator Sebi to commence trading with diamond futures contracts. “We will start trading operations on August 28 in diamond futures contract. With the launch, ICEX will pave the way for creation of the world’s first organised, transparent and regulated derivatives market for diamonds, which will enable hedging and price discovery in the precious stone,” ICEX managing director and CEO Sanjit Prasad told PTI here.
Reliance Capital, part of the Anil Ambani-led Reliance Group, is the largest investor in the exchange. ICEX, a screen-based online derivatives exchange for commodities, said it has completed a pre-launch mock trading between August 7-11. During the week-long mock sessions, ICEX saw a nationwide participation with 62 members and their clients taking part from 388 terminals. Out of the 8,013 clients, who registered with the exchange, 5,119 clients participated for the mock trading.
Total trades during the week stood at 26,64,208. The average daily turnover touched Rs 3,590 crore and the highest daily turnover reported was Rs 7,855 crore, a release issued by ICEX said. “The mock trading helped diamond manufacturers and traders to understand and experience price hedging by practically doing it in a near live environment,” Prasad said. The exchange has put in place necessary infrastructure to handle deposits, grading and sealing, vaulting and delivery of diamonds as part of its preparation for the formal launch of the diamond futures contracts.