Adding a new leaf to the history of India’s commodity markets, Indian Commodity Exchange Limited (ICEX), a screen-based online derivatives exchange for commodities, went live on August 28th. ICEX commenced operations with the launch of Diamond Futures, which will be the world’s first derivatives contracts in diamonds.

The formal inauguration unfolded at a function held in Mumbai and attended by prominent dignitaries from the diamond industry and the exchange industry ecosystem. Mr. Praveen Shankar Pandya, Chairman, Gems & Jewellery Export Promotion Council was the chief guest at the event. Also present were, Mr. V N Kaul, Ex-Comptroller and Auditor General of India and Independent Director of Reliance Capital, which is one of the prominent shareholders of ICEX, and Mr. Anoop Mehta, President, Bharat Diamond Bourse (BDB).

Mr. Pandya congratulated ICEX on its launch and said, “I am sure the new exchange will be able to make a meaningful contribution towards further development of India’s commodity markets.”

Mr. Ashok Sinha, Chairman, ICEX added, “The vision behind ICEX has been to establish a world-class platform that offers de-risking avenues against the price vagaries in not only the Indian manufacturing sector but also in the agricultural sector. We want to see that the benefit of One India-One Price helps even small farmers.”

Highlighting the importance of the exchange, Mr. V N Kaul said, “Launch of ICEX will give a further fillip to Indian trade and commerce and help in harnessing the true potential of the Indian commodity derivatives market.”

Mr. Sanjit Prasad, MD & CEO of ICEX, said: “ICEX shall offer a fair, transparent and nationwide market, bringing in large market participation into diamond trade. It shall result in efficient price discovery and provide an effective hedging platform for all stakeholders of the diamond industry. ICEX brings together the best technology in terms of trading platform from MIT (Millennium IT - a leading innovative trading technology business), renowned vaulting services offered by MALCAAMIT and credible grading certification by IIDGR. This will fulfill the objectives and standards as set up by the Regulator and the Government of India.”

The diamond contracts launched by ICEX initially is in size of 1 carat with compulsory delivery. This will create an entirely new market for the diamond industry players where the sellers can deliver their certified quality diamonds to different set of buyers from across the country.

The launch of Diamond Futures trading on ICEX will lead to efficient price discovery based on demand and supply fundamentals and a nationwide market participation. Till date, 100+ members and around 4,000 clients have registered with the exchange.