Download Report - Polished Prices

Key Value Proposition

SDiX is developing a unique and innovative model – creating an entirely new market place through
the world’s first 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 is created by a team including financial, stock market and commodity exchange
experts operating outside the diamond industry. This regulation and the large number of committed
suppliers will serve 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
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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

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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
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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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