World's first diamond exchange will go live in Singapore in September

A file picture of a diamond ring being inspected. PHOTO: BLOOMBERG
A file picture of a diamond ring being inspected. PHOTO: BLOOMBERG

SINGAPORE - The Singapore Diamond Investment Exchange Pte Ltd (SdiX) on Wednesday announced it will launch the world's first commodities exchange in physically settled diamonds in Singapore. The exchange is targeted to go live in September 2015.

The SdiX said in a statement that the SDiX platform will utilise proven exchange technology to create a new marketplace for the global diamond trade.

The platform 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, it added.

Mr Alain Vandenborre, Executive Chairman, Founder and controlling shareholder of SDiX, said: "SDiX is a fully electronic spot commodity exchange which we developed over the past two years and 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.

"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."

jkoh@sph.com.sg