The Reliance ADAG-anchored Indian Commodity Exchange (ICEX) has started world’s first diamond futures exchange mock trading in India on Monday.
The exchange began the trading sessions from noon, with a pre-open session extending a maximum of 20 minutes. The mock trading session will continue till 7 pm for five days.
The move is aimed to clear the air of doubts in these trade. However, the actual trade would reportedly take place in the end of August or the first week of September.
“Mock trading will help diamond processors, traders and dealers to understand and experience price hedging methodology, by practically doing it in a near-live environment,” said Sanjit Prasad, chief executive officer at ICEX.
The diamond industry consists of manufacturers or ‘diamantaires’ (the term for owners of cutting and polishing units), wholesalers, traders, brokers, retailers and jewellery fabricators. All these parties are expected to make use of the platform to get better hedge price risks.
Surat in Gujarat is considered to be the global centre for diamond cutting and polishing.
Around 90% of ‘rough’ diamonds from the world are sent here for assortment and then its distribution among members in the value chain.
