DODAQ offers first ever online cash market for diamonds

Antwerp, Belgium, after leading the world diamond industry, Antwerp has pioneered the concept of the world’s first online electronic diamond exchange. The exchange, being operated out of Antwerp, will enable polished diamonds to be globally traded like other commodities through the url www.exchange.dodaq.com. The intent is to create an exchange where diamonds can be traded like any other commodity. The innovation of the exchange was propelled by the changes in the diamond industry and support of evolving technology. Simon Okuniew said: "In recent years certifying diamonds has become an industry standard. By standardising diamonds we are realistically able to call them a commodity and therefore trade them as such. All global markets are traded electronically so the logical next step was to create a fully automated electronic exchange for diamonds." The rules that apply to other exchanges are also found here.

DODAQ (Dealers Organisation for Diamond Automated Quotes) offers two-way auctions for individual categories of polished diamonds, thus creating real time spot prices and the first cash market for diamonds. The two-way auction mechanism gives the advantage of price transparency and allows the market to decide fair value, behaving similar to the markets for stocks, currencies and other commodities.

The trading platform is open to all, both within and outside of the industry, enabling diamonds to be realised for the first time as an asset class, and an alternative investment opportunity to gold. It provides both a liquid entry and resale point for investors, launching a sort of revolutionary step for the global diamond industry, updating it with 21st Century trading practices. It also provides the necessary vaulting to solve the burden of physical ownership.

All client funds are held by ABN AMRO Bank and DODAQ uniquely offers instantaneous settlement, steering the industry away from the current reliance on credit. CEO Simon Okuniew said: "DODAQ is a cash market. For us to guarantee settlement we need to be satisfied that the diamond is real and this is achieved through certification. The system calls for the original certificate which will then be checked to verify that the certificate and diamond match. They are then sealed so that at no stage can they be handled. The diamonds are then sent to our specialist vault in the Freeport of Geneva which is run by our professional custodian Malca-Amit, one of the most respected security and storage operators in the world with a 21-year proven track record."

DODAQ is currently offering online webinars for those wishing to understand the trading platform which can be arranged on the homepage at www.DODAQ.com where a simulator version of the exchange is available.