Singapore firm SDiX to launch world’s 1st electronic exchange for diamond market


Singapore Diamond Investment Exchange Pte Ltd (SDiX) announced today the upcoming launch of the world’s first commodities exchange in physically settled diamonds in Singapore, targeted to go ‘live’ in September 2015.

The SDiX platform, the first of its kind globally, will utilize proven exchange technology to create a new marketplace for the global diamond trade, and 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.

This new exchange is founded by Alain Vandenborre with a team of seasoned professionals in financial, stock and commodity markets. The new exchange is backed by Vertex Ventures Holdings, a fully-owned venture capital subsidiary of Temasek Holdings, and the second largest shareholder of SDiX.

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.

Commenting on the Vertex investment in the Exchange, Mr. Chua Kee Lock, Group President & CEO of Vertex Ventures Holdings, a fully-owned venture capital subsidiary of Temasek Holdings, said: “At Vertex, we seek out promising, disruptive and transformational technologies and leaders, to build them into global champions. With its innovative exchange-based business model, SDiX is set to transform the way diamonds are traded and potentially jumpstart the growth of the polished diamonds industry globally. The excellent infrastructure and strong leadership team experienced in managing stock and commodity exchanges give SDiX a great head-start in making this venture a success.”

Singapore Poised to be a Global Diamond Trading Hub

Mr. Linus Koh, Chief Executive Officer of SDiX, said: “With real time transactional data readily accessible, SDiX aims to become the authoritative source of price information in diamond trading. SDiX is several steps beyond e-commerce. Our best practice exchange price discovery platform and post-trade processes will be another venue for the diamond industry to channel transactions, but its inclusion of a broad diversity of other participants deepens liquidity and instills confidence as diamonds become established as a financial asset. Looking ahead, the Exchange platform can be extended with new instruments such as futures and diamond derivatives, under regulatory oversight acknowledged as among the best in the world, giving SDiX the flexibility to grow in scope and scale in a trusted environment.”

The exchange is positioned geographically in Singapore, the most transparent and business friendly jurisdiction in Asia, and a globally recognized financial center.

For further information regarding this new exchange, click here.

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Singapore firm SDiX to launch world’s 1st electronic exchange for diamond market

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