Key Value Proposition
· SDiX is developing a unique and innovative model – creating an entirely new market place through the world’sfirst global electronic regulated diamond exchange that provides a fully transparent market based on matching supply and demand in global scale.
Diamond industry needs to integrate global economic rules and faces a natural dilemma; “go big, or go out”.
· The platform creates access for financial investors, , having the following impact:
o Diamonds instruments/commodity products being developed will result in a larger transaction size resulting in larger traded volumes
o Financial traders trade fungible products/instruments – accordingly these products/instruments are traded multiple times
o On existing B2B or B2C platforms, trades result in outflow from the market through sales to the end consumer. SDiX will see diamonds traded on the Exchange on a number of occasions before exiting
· The Exchange will bring suppliers of diamonds together with financial investors with the price based on the offer and bid price stated meaning there is no negotiation and price being determined by market conditions. The pricing is transparent to all market participants promoting confidence and increasing liquidity.
· The Exchange will adhere to, and operate strictly in accordance with existing stock and commodity market regulations and act as a totally independent vehicle in relation to the diamond industry. It iscreated by a team including financial, stock market and commodity exchange expertsoperating outside the diamond industry. This regulation and the large number of committed suppliers willserve to remove the risk of manipulation
· The proposition is enhanced through trading of GIA, IGI and HRD certified and sealed or laser inscribed natural diamonds, providing confidence to market participants and removing the threat of synthetic diamonds being mixed with natural stones. Grading laboratories are being discussed resulting in the creation of a range of Commodity Trading Certificates – which are irrelevant for end users in the B2B and B2C markets, but needed for commodity traders.
· SDiX’s key strengths are its independence from the diamond trade, excluding the risk of manipulation, and its robust infrastructure, using leading players to develop state of the art technology for the exchange
· The creation of diamonds as an asset class opens up the opportunity to introduce Futures and other Diamond Derivatives Instruments
Business Model highlights
The Singapore diamond investment exchange is designed to deliver price transparency and liquidity to the market. It will provide a self-regulated marketplace for traders, investors and retailers to acquire stones at a market price that is driven by real transactional data. Further it will result in the homogenization of diamonds, simplifying the manner that they are valued and hence allowing them to be traded as a commodity – without interfering with the traditional way of trading diamonds in the diamond centres.. These factors will further stimulate additional liquidity and encourage additional market participants to participate.
The operation of an exchange results in the opportunity to establish complementary business operations. These are business operations that will operate alongside the Exchange, trading directly on the Exchange and providing stock financing to market participants. It will change the existing supply chain and provide the platform to allow diamonds to become a globally traded commodity. Through bringing the exchange concept to the diamond industry, a concept utilised to trade equities and commodities throughout the world, it will provide the industry with the potential to grow through additional transparency and decreased complexity.
Innovative business model
· A business model that is designed to change the way in which the existing market operates – bringing increased transparency, liquidity, instant transactions at spot prices, and decreased complexity
· A model that opens the market to new participants, primarily investors and traders, and provides the ability to monetize investments made
Market requirement
· With the continued supply-demand imbalance prices are forecast to rise. Therefore there is a market need for transparent pricing as the market comes under increasing industry pressure
· The increasing prevalence of laboratory grown diamonds presents a risk to the demand for smaller natural diamonds. The creation of a marketplace where only certified natural diamonds are traded will maintain the identity and demand of this product
· Banks currently lending to the diamond industry are increasingly restricting the supply of finance. Consequently, the Exchange will allow stock financing operations and provide new funding at a time when funding is becoming increasingly constrained
Experienced Management and Advisory teams
· A highly experienced and skilled management team with a significant depth of knowledge of the diamond, stock and commodity exchange and trading markets
· An Advisory Committee consisting of highly prominent figures with a depth of expertise across the diamond and commodity trading sectors
· A hand selected team of external providers signed up bringing considerable experience in a number of fields including IT, pricing and banking
Key management
Alain Vandenborre - Executive Chairman & Chief Financial Officer
· Founder and main shareholder of SDiX
· Co-Founder and shareholder of the Singapore Freeport
· Serial entrepreneur and private investor with 25 years of experience
· Has previously held a number of senior positions in the private equity and venture capital industry
Ilya Polner - Chief Executive Officer
· Executive Partner and second largest shareholder of SDiX
· Former co-owner of the Russian consulting business, KSK Group
· Engineer by training and has been responsible for managing business efficiency with 13 years of managerial experience
Romain Meraud – Chief Information Officer
· Eight years of senior technical experience in IT Systems Management, in particular within companies in the finance industry
· Has previously held the senior position as Regional IT Director for APAC for MCI Group SA
· Master Degree in IT Systems Engineering with Entrepreneurship and Innovation minor
Daniel Tan - Head of Technology & MarketGrid
· In-depth knowledge of exchange systems resulting from a 25 year career at the SGX where he held various senior positions including Executive Vice President and Head of Technology and was an Executive Committee member
· Previously a member of the SWIFT Asia Pacific Advisory Group
Linus Koh - Head of Products
· Former President and Chief Operating Officer of the SMX
· Has held several senior positions at SGX including Chief Financial Officer and Head of Strategy, as well as leadership roles in capital markets and investment banking at Citibank, UBS, and Deutsche Bank, where he served as COO for its Global Foreign Exchange, based in London
· Responsibilities included leading the development and management of listed securities, derivative products and exchange services
Lai Eng Keat - Regulatory, Compliance and Audit
· Executive Director and Head of Compliance of ED&F Man Capital Markets
· Over 25 years of in-depth knowledge in regulatory, compliance and surveillance integrations having worked as Head of Compliance and Head of Participant Supervision with SIMEX and SGX respectively
Key Consultants and Advisors
Paul Phillips - MarketGrid
· Over 30 years of experience in the IT industry, focusing on financial markets
· Founded Financial Market Software Consultants which developed the ASTS trading system that has been deployed across 25 exchanges worldwide
· Designed and implemented the world’s first fully automated order matching system for the SGX
Philip Haynes - MarketGrid
· Has developed software for the securities trading industry for over 20 years
· Prominent projects include The Jakarta Stock Exchange, Oslo Bors, ICAP iSwap, The Swiss Exchange and the Dubai Financial Market
· An expert in communications and protocols used in the financial services industry
Rob Hodgkinson - MarketGrid
· Co-developed ASTS, ASTS trading system that has been deployed across 25 exchanges worldwide and was acquired by NASDAQ-OMX
· Director of First Derivatives, leading its APAC operations
· Has over 35 years in financial markets combining IT, mathematics and statistics
Charles Wyndham - PolishedPrices.com
· Co-founder of PolishedPrices.com – the only independent price list for polished diamonds using transactional data
· Has operated in the diamond industry for over 30 years with past experience including Chief Sales Officer at De Beer’s company
Emma Muller - PolishedPrices.com
· Co-founder of PolishedPrices.com
· Founder and owner of BOTM Pty - a boutique advisory firm offering sustainable investment advice in the diamond and luxury goods industry
· Worked as correspondent for Reuters in Amsterdam, covering equity markets, construction and luxury goods industries
Richard Platt – PolishedPrices.com
· Managing Director of WWW Diamond Forecasts Ltd, and Director of U2 Diamonds (Owner of PolishedPrices.com), and RJP Diamond Forecasts Ltd
· Over 30 years of experience in the diamond industry, having spent 22 years at De Beers in various departments including Management Information, Scenario Planning, Market Research, and Sales & Marketing
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