CHICAGO, Sept. 9, 2013 /PRNewswire/ -- GemShares, LLC, a pioneer in the delivery of physically-backed diamond investment products to regulated exchanges around the globe, and The NASDAQ OMX Group, Inc. today announced an agreement to develop the GemShares Global Investment Grade Standard (GIGS™) Diamond Basket Index. This transparent, rules-based index will provide a standardized pricing mechanism for valuing a diamond basket that could be used for the development of financial products.
The NASDAQ OMX Group and GemShares will develop the GemShares GIGS™ Diamond Basket Index to track the prices of diamonds that have met the patented standards for investment-grade certification developed by GemShares. Through this index, diamonds that have met the GIGS™ gemological, proportional, optical and light-behavior guidelines can be securitized for the creation of financial products to be listed and traded on regulated exchanges globally.
"The establishment of the GemShares GIGS™ Diamond Basket Index will lead to the securitization of diamonds by bringing a new and enhanced level of confidence through the addition of transparency and liquidity to the process of pricing these assets for investment purposes," said Dan Gramza, GemShares Partner. "This partnership is the first step toward creating a significant bridge between the financial and diamond industries that brings the benefits of investing in diamonds to investors around the globe. By opening new channels of distribution, GemShares will enable the diamond industry to reach a broader range of customers and increase revenue."
GemShares was founded in 2007 with the goal of creating a fungible global investment standard for diamonds and gemstones. GemShares was awarded a patent for the GIGS™ pricing mechanism in August 2012.
"NASDAQ OMX's collaboration with GemShares represents two innovators who are committed to enhancing transparency and providing investment solutions to investors," said John L. Jacobs, Executive Vice President of Global Information Services for NASDAQ OMX. "The introduction of the GIGS™ Diamond Basket Index is another indication we continuously strive to meet demand for a wide variety of investment opportunities through the design of relevant, objective indexes."
About GemShares GemShares, LLC is pioneering the delivery of physically-backed diamond products to regulated exchanges around the globe. The company has partnered with The NASDAQ OMX Group, Inc. to develop the GemShares Global Investment Grade Standard (GIGS™) Diamond Basket Index, a transparent, rules-based index that will offer a standardized pricing mechanism for valuing a diamond basket that could be used in the creation of financial products.
GemShares' management team spans the diamond and financial industries and is bridging the gap between the two sectors to make diamonds fungible through the patented GemShares Global Investment Grade Standard (GIGS™). GemShares is based in Chicago.
About NASDAQ OMX Group The inventor of the electronic exchange, The NASDAQ OMX Group, Inc., fuels economies and provides transformative technologies for the entire lifecycle of a trade — from risk management to trade to surveillance to clearing. In the U.S. and Europe, we own and operate 26 markets, 3 clearinghouses and 5 central securities depositories supporting equities, options, fixed income, derivatives, commodities, futures and structured products. Able to process more than 1 million messages per second at sub-40 microsecond speeds with 99.99% uptime, our technology drives more than 70 marketplaces in 50 developed and emerging countries into the future, powering 1 in 10 of the world's securities transactions. Our award-winning data products and worldwide indexes are the benchmarks in the financial industry. Home to over 3,300 listed companies worth $6.9 trillion in market cap whose innovations shape our world, we give the ideas of tomorrow access to capital today. Welcome to where the world takes a big leap forward, daily. Welcome to the NASDAQ OMX Century. To learn more, visit www.nasdaqomx.com/. Follow us on Facebook (www.facebook.com/NASDAQ) and Twitter (www.twitter.com/nasdaqomx). (Symbol: NDAQ and member of S&P 500)
Cautionary Note Regarding Forward-Looking Statements The matters described herein contain forward-looking statements that are made under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements about the GemShares GIGS™ Diamond Basket Index, as well as NASDAQ OMX's other products and offerings. We caution that these statements are not guarantees of future performance. Actual results may differ materially from those expressed or implied in the forward-looking statements. Forward-looking statements involve a number of risks, uncertainties or other factors beyond NASDAQ OMX's control. These factors include, but are not limited to factors detailed in NASDAQ OMX's annual report on Form 10-K, and periodic reports filed with the U.S. Securities and Exchange Commission. We undertake no obligation to release any revisions to any forward-looking statements.
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