News

Mar 09, 2018

Increasing Turnover and Volumes of Traded Diamond Contracts Seen on ICEX Till March Settlement

Indian Commodity Exchange Limited (ICEX) has reported an increase in both turnover and volumes traded in its diamonds futures contracts after successfully completing its March settlement. The platform has now reached what it describes as the psychological 100 carat mark for delivery during this cycle.

ICEX reported that in the March 2018 expiry, 67.96 carats of 1 ct diamond and 31.81 carats of 0.50 ct of diamond were delivered by the exchange in the recently concluded settlement cycle for a total of 99.77 carats of diamonds in both the futures contracts put together valued at Rs.2.77 crore.

Overall, the total traded quantity in March 2018 expiry of 1 ct diamond since its launch was 12,50,580 lots valued at Rs 405.6 crore and for 0.50 ct diamond it was 3,70,111 lots valued at Rs. 54.97 crore.

The percentage of delivery against the total traded quantity combined together has been 0.61% at par with international market. During the time of March 2018 expiry, the spot and future price of diamonds converged, which is indicative of efficient price discovery of the underlying asset, ICEX reported.

Sanjit Prasad, MD & CEO said, “Successful completion of yet another settlement cycle with a consistently increasing turnover and volumes is indicative of the rising confidence of the industry in this organized market for diamonds, which is neutral, completely safe and transparent. ICEX reached the psychological 100 carat mark for delivery, with all open Interest positions towards contract expiry resulting in delivery at the end of March 2018 settlement cycle, which is a prove for the robustness of the platform.”