The goal of this strategic alliance between SDiX and MCX is to develop, design and launch, with the relevant regulatory approvals, the first diamond derivatives contract of its kind anywhere in the world. The contracts will utilise actual traded spot prices for the daily and final settlement of diamond contracts.
The partnership aims to offer diamond market participants a tool to hedge their business risk and unveil new opportunities to unlock diamonds as an investible commodity. SDiX and MCX can offer domestic Indian diamond traders, jewellers and financial market participants access to Indian Rupee denominated derivatives products based on physically settled diamonds.
Alain Vandenborre, Executive Chairman & Founder of SDiX, commented: "SDiX is committed to working with MCX to offer this unique opportunity for jewellers and diamond traders, commodity market participants, and intermediaries to trade in diamonds in a transparent and regulated market".
Aruna Gaitonde, Editor-in-Chief of Asian Bureau, Rough & Polished