Report

Key Value Proposition

SDiX is developing a unique and innovative model creating an entirely new market place through the worldsfirst 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:

Diamonds instruments/commodity products being developed will result in a larger transaction size resulting in larger traded volumes

Financial traders trade fungible products/instruments accordingly these products/instruments are traded multiple times

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.

SDiXs 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 worlds 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 Beers 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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