ICEX completes settlement cycle!
Indian Commodity Exchange Limited (ICEX), which completed yet another successful settlement cycle in the first week of March, 2018, also continues to witnesses a consistent increase in turnover and volumes for both its diamond futures contracts of 1 CT and 0.50 CT, respectively. The Exchange had launched its 0.50 CT Diamond futures contract on 27th November 2017.
In the March 2018 expiry, 67.96 carats of 1CT diamond and 31.81 carats of 0.50CTof diamond were delivered by the exchange. Total 99.77 carats of diamonds in both the futures contracts put together valuing Rs.2.77 crore were delivered in the recently concluded settlement cycle.
Overall, the total traded quantity in March 2018 expiry of 1CT diamond since launch was 12,50,580 lots valuing at Rs 405.6 Crs. and in 0.50CT diamond total traded quantity was 3,70,111 lots valuing at Rs. 54.97 Crs. 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. Sanjit Prasad, MD & CEO commenting on the settlement cycle: “Successful completion of yet another settlement cycle with a consistently increasing turnover and volumes 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.”
