On the Agenda

A recently established Antwerp-based firm named DODAQ says it is the first online certified diamond exchange offering electronic two-way auctions for buyers and sellers to trade individual diamond categories based on real time tradable spot prices. The company says it is transforming the polished diamond industry from its existing weekly price sheet standard to a real time, automated pricing mechanism.
 

All diamonds published on the DODAQ (Dealers Organization for Diamond Automated Quotes) platform have been graded by a recognized gemological grading laboratory and are received with their original certificates into the DODAQ vault. There are strict guidelines which determine the eligibility of those wishing to issue new diamonds onto the exchange. Only round brilliant diamonds weighing between 0.3 and 1.09 carats are traded, although Chief Operating Officer Ben Spivack said that might be raised to 2 carats in the future.
 

"We are looking for the most liquid and high-volume areas of the market since our system is modeled on how a stock market operates," Spivack commented. "Our mechanism is different from other system which are inventory lists. We are developing a two-way auction where both buyers and sellers can bid. We have created categories of diamonds where we are creating spot prices. The entire system is transparent."
 

Incorporated in May 2008, the firm launched a beta, or demo version, of its site in October for potential users to get an understanding of what it can offer them. Trading will start in earnest when the site is officially launched in the first quarter of 2009. For now, users are able to "trade" on the simulated site with a fictional $500,000 provided by DODAQ.
 

DODAQ's vaulting and transportation services is carried out by Malca-Amit, and monetary settlement is executed via ABN AMRO Bank. DODAQ acts as a counter-party providing a seamless transaction between traders and other participants, guaranteeing that the physical and monetary transfer is executed instantaneously.
 

DODAQ's management team combines diamond industry, financial markets and electronic trading systems with qualified accounting and auditing expertise. Coupled with an advisory board providing invaluable experience in founding and running highly respected blue chip organizations, and a highly skilled technical team supporting ongoing development to increase the data product range and broaden the possibilities that diamonds offer both as an item of trade and an investment opportunity.