The exchange, meanwhile, will launch mock sessions for diamond futures trading on its platform from tomorrow.
In order to help traders and investors gear up for the actual trading, which is likely to start towards the end of August or first week of September, the exchange will be launching mock trading sessions from August 7 to 11, ICEX said in a statement here.
The sessions will begin from 12 noon, with the pre-open session extending from 12.10 pm to 12.20 pm. The mock trading session will then commence at 12.20 pm until 7 pm.
“The mock trading will help diamond manufacturers and traders to understand and experience price hedging by practically doing it in a near live environment,” ICEX CEO Sanjit Prasad said.
The mock sessions will help participants from across the diamond industry, which consists of ‘manufacturers’ or ‘diamantaires’ (as owners of cutting and polishing units are called), wholesalers, traders, brokers, retailers and jewellery fabricators to utilise the platform as an effective tool of hedging their physical trades.
It will also help them to see how the exchange will be the price setter of the exotic commodity.
Surat is considered to be the global centre for diamond cutting and polishing. Around 90 per cent of the ‘rough’ diamonds mined across the world is sent to Surat.
The Bharat Diamond Bourse (BDB) on the other hand is where most of the physical diamond trades happen in India.
The mock trading programme is aimed at educating the physical diamond players on how to utilise the mechanism of futures trading to manage price-related business risk in the diamond trade, Prasad said.
Reliance Capital, part of Anil Ambani-led Reliance Group, is the largest investor in the exchange.
ICEX is promoted by a mix of public-private partnership comprising PSUs including MMTC, Indian Potash, Krishak Bharti Cooperative (Kribhco) and IDFC Bank, among others.
The Reliance Group has been able to understand the issues related to the diamond industry and gone for offering the solution, a release said.
The commencement of diamond futures trading would help them to manage price risk in a much better manner, it added.