- Brings exchange technology to the diamond market, creating a new global marketplace for fair, orderly and transparent trading of diamonds
- Diamond supply initially provided by key members of the Bharat Diamond Bourse, the world’s largest diamond market
- Founded by a team of visionary entrepreneurs and professionals with exceptional stock & commodity markets credentials, and totally independent of the diamond industry
- Backed by Vertex Ventures Holdings, a fully-owned venture capital subsidiary of Temasek Holdings, and the second largest shareholder of SDiX
Singapore, July 1, 2015 – Singapore Diamond Investment Exchange Pte Ltd (“SDiX”, or the “Exchange”) announced 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 utilise 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 (See Annex A): Linus Koh, Latika Kundu, Lai Eng Keat and supported by Jim Rogers and Hsieh Fu Hua as angel investors.
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.
SDiX’s cutting-edge technology and trading engine allows matching trades above 500,000 transactions per second and our business model opens the market to new participants from financial markets, primarily accredited financial investors and traders, and provides the ability to monetize investments made. We aim to provide a fair, orderly and transparent global marketplace in which diamonds may be acquired at real-time transactional, wholesale prices, thereby removing the need to go through private traders who have little or no regulation. With our innovative business model, SDiX aims to support the creation of diamonds as an asset class that will benefit both the diamond trade industry as well as the financial and commodity markets.”
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.”
Innovative Business Model Backed by an Established Ecosystem
As part of its drive to secure a wide network of approved diamond suppliers, SDiX is pleased to have established a key strategic relationship with the Bharat Diamond Bourse (“BDB”), the world’s largest diamond market. Having BDB’s members on board as approved suppliers ensures a steady supply of consignment diamonds ready for trade. Jointly envisioning significant trading volumes, SDiX has commissioned a dedicated physical vault for diamonds in BDB’s facilities in Mumbai.
Mr. Anoop Mehta, President of BDB, said, “SDiX’s Exchange offers our members an additional channel to access diamond traders, including direct access to accredited financial investors and traders, and help generate additional revenue streams for our members. SDiX’s exchange platform will enable our members to better tap the opportunities in the market. We are delighted to provide space for the vault to store diamonds within BDB premises and wish them all the success in this venture.”
(See Annex B for SDiX Ecosystem)
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.
International Enterprise Singapore (IE Singapore), the government agency promoting international trade and helping Singapore companies expand overseas, is assisting SDiX through its Global Company Partnership (GCP). The GCP will support the company in building up capabilities in manpower and branding, as well as overseas rental for marketing/representative offices.
Mr. Teo Eng Cheong, Chief Executive Officer of IE Singapore, said: “IE Singapore supports innovation in facilitating physical commodity trade from Singapore. The launch of SDiX’s platform represents a step towards increased transparency and liquidity for the trade of diamonds. This would enhance Singapore’s infrastructure for precious metals and minerals trading.”
All diamonds listed on the SDiX will be graded by the globally recognized (See Annex C) GIA (Gemological Institute of America) and will be safe kept under the custodial services of Malca-Amit – a global wealth management logistics company. UOB Bank is the initial Approved Settlement Bank.
SDiX has potentially more than 25 Pioneer Members for the launch, comprising Approved Suppliers and Broker Members. They include Paragon Diamonds, Kiran Gems Pvt. Ltd., SRK, Hari Krishna Exports Pvt. Ltd., Rosy Blue, Sheetal Group, Leo Schachter Diamonds, KP Sanghvi, Kapu Gems and UOB Kay Hian, representing participation across six countries: Singapore, India, Hong Kong, US, Belgium, and UK. SDiX will continue with business development activities and are looking to have further additions when it goes ‘live’.
SDiX will start with two dedicated physical vaults, one operated by Malca-Amit in Singapore Le Freeport and second operated by Malca-Amit within the Bharat Diamond Bourse, Mumbai.
About Singapore Diamond Investment Exchange (SDiX)
The Singapore Diamond Investment Exchange (SDiX), headquartered in Singapore, is the world’s first commodities exchange in physically settled diamonds. SDiX brings exchange technology to the diamond market, creating a price discovery mechanism where diamonds can be traded as a new asset class. Diamonds traded on SDiX are professionally graded by GIA.
Wholly independent from the diamond industry, the Exchange establishes its Rules based on the best practices and market regulations of the securities and commodities market. The SDiX trading platform provides a fair, orderly, transparent and regulated marketplace for traders and accredited investors to acquire polished diamonds at market prices driven by real time transactional data. For information please visit www.sdix.sg
NB: SDiX is not a member of or affiliated to the World Federation of Diamond Bourse
Vertex Venture Holdings Ltd (Vertex Group) is a wholly-owned subsidiary of Temasek Holdings, investing in emerging companies and leading venture capital funds throughout Greater Asia and the US. Since inception in 1988, Vertex has achieved substantial returns for its investors, while helping over 150 entrepreneurial companies realise their intrinsic value, through strategic listings on key capital markets in the US, Europe, Singapore, Hong Kong and Taiwan, and through key acquisitions by industry leaders. Vertex has successfully invested in more than 350 start-up companies in the Pan Pacific and other regions, primary fund commitments to over 90 third party venture capital and private equity funds in the US, Europe and Asia, with total deployed capital in excess of US$1.2 billion. For more information on Vertex please visit www.vertexmgt.com
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