Singapore-based securities firm UOB Kay Hian Pte Ltd has joined the Singapore Diamond Investment Exchange (SDiX) platform as its pioneer broker. The SDiX is the world’s first and only commodity exchange trading in physically settled diamonds.

In its capacity as broker partner of the exchange, UOB Kay Hian will be able to offer its accredited investor clients the opportunity to diversify their portfolios through investments in diamonds as an asset class. Accredited investor clients of its affiliates will also enjoy the same access.

Alain Vandenborre, Chairman and Founder of the Singapore Diamond Investment Exchange, commented: “Partnerships with leading institutions such as these underline the rapidly growing demand among investors and investment managers globally for new opportunities in diamond-backed investments.”

The Singapore Diamond Investment Exchange has been established to provide the only transparent price discovery mechanism for the global diamond trade, giving banks, financial firms and investors a benchmark price to value diamonds as an asset. It aims to standardize global trading in diamonds as an asset class and to unlock new investment opportunities for global investors. Trading on the exchange is scheduled to commence in the second quarter of 2016.

The partnerships announced today will enable SDiX to leverage UOB Kay Hian’s networks in Singapore, Hong Kong, Malaysia, Indonesia and Thailand to bring accredited investors new opportunities to trade in immobilized single stones and ‘baskets’ which are fungible collections of investment-grade diamonds. Both single stones and baskets can be traded electronically on a price/time priority in a continuous market, and buyers can place indicative price bids by diamond category. All stones traded on SDiX are GIA-graded and buyers of single stones can examine certifications directly through the platform. All baskets have an identical number of stones and total weight, and contain stones of identical cut, clarity and colour.

Esmond Choo, Senior Executive Director of UOB Kay Hian Pte Ltd, said: “For the first time, diamonds can be traded with the security and efficiency expected of any financial asset using the SDiX platform. By bringing proven commodity exchange technology to the USD $22 billion per year polished diamond market, SDiX paves the way for new investment opportunities for our clients across the region.”