To help the Diamond industry limit losses when polished prices fluctuate. The Indian Commodity Exchange has launched the first diamond futures trading contract.
Diamond futures contracts work as price insurance, when fluctuations impact the value of inventories. With the futures trading traders agree on a price for a contract.
The new exchange platform gives investors a format similar to commodities exchanges such as Comex, Nymex and the London Metal Exchange.
Over 100 members and approximately 4,000 clients have registered with ICEX exchange.
The Indian government approved diamond futures trading in September 2016.