RAPAPORT... Investment firm GemShares LLC and the NASDAQ OMX Group Inc. plan to develop the GemShares Global Investment Grade Standard (GIGS™) Diamond Basket Index, a rules-based index that will serve as the basis for a standardized pricing mechanism to value a diamond basket of funds that could be used to develop financial products, according to GemShares. The GIGS Diamond Basket Index will track the prices of diamonds that have met GemShares' patented standards for investment-grade certification, which take into account proportional, optical and light-behavior guidelines that GemShares believes can be securitized, listed and traded on regulated exchanges globally.
Dan Gramza, a partner in GemShares, said, "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."
John L. Jacobs, the executive vice president of global information services for NASDAQ OMX, added, "NASDAQ OMX's collaboration with GemShares represents two innovators who are committed to enhancing transparency and providing investment solutions to investors. 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."