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Antwerp Bans Lab-Grown from Trading Floors
Oct 10, 2019 8:27 AM
By Joshua Freedman
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RAPAPORT... The Federation of Belgian Diamond Bourses has introduced a
ban on lab-grown sales in Antwerp’s four trading halls.
While synthetics trading is still rare in Antwerp, the
umbrella group took action last month because it views the exchanges as promoters
of natural diamonds, explained Willy Rotti, president of the federation.
Lab-grown will still be permitted in companies’ offices, where most transactions
occur.
“There was not [previously] a formal order that the trade of
lab-grown diamonds was allowed or forbidden in the exchange, so we made it very
clear: No trading of lab-grown in the trading hall,” Rotti told Rapaport
News this week. “Before that, as far as we know, there was never trading of
lab-grown in the exchange, but we put it [as] an announcement to make it very
clear to the members.”
The federation placed notices in the bourses to inform
members, dated September 19, and plans to reprimand those who fail to comply.
“We don’t have a precedent, but I imagine there will be a fine and a sanction
for a period,” Rotti added.
Antwerp has four diamond exchanges: the Antwerp Diamond
Bourse, the Antwerpsche Diamantkring (for rough trading), the Diamond Club of
Antwerp and the Vrije Diamanthandel. The Federation of Belgian Diamond Bourses can
make decisions on behalf of those exchanges, as its board includes representatives
of all those groups.
The Antwerp bourses have members that trade in both
lab-grown and natural diamonds, but none that are purely synthetics dealers. Letting in such companies in the future would help the bourses maintain control over the
market, as they would have the power to punish those who sell under false
pretenses, Rotti said. However, it would also create an odd situation in which
there are members that can’t do business on the trading halls, he noted,
although they would have access to the offices and other benefits.
Exchanges around the world have been debating how to deal
with companies that wish to sell lab-grown. The Bharat Diamond Bourse (BDB) in
Mumbai is considering lifting its ban on synthetics, with India’s Natural
Diamond Monitoring Committee currently assessing how to regulate the change and
ensure segregation, Anoop Mehta, president of the BDB, told Rapaport News
Thursday.
“We won’t consider anything unless we are really clear about
the guidelines and rules, because we don’t want to get a bad reputation for the
industry,” Mehta pointed out.
The Israel Diamond Exchange has held discussions about the
sector this year. In May, the Dubai Diamond Exchange hosted the first tender of
rough synthetic diamonds to take place at any member of the World Federation of
Diamond Bourses (WFDB). The WFDB gives its members independence to decide on
these issues themselves, its president, Ernie Blom, said at the time.
In January 2017, the Federation of Belgian Diamond Bourses adopted
WFDB’s rules requiring clear descriptions on invoices and memo documents, and
agreed to take disciplinary action against companies that fail to comply.
Image: The Antwerp Diamond Bourse trading floor. (Antwerp World Diamond Centre)
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Tags:
Anoop Mehta, Antwerp, Antwerp Diamond Bourse, Antwerpsche Diamantkring, BDB, Belgium, Bharat Diamond Bourse, Diamond Club of Antwerp, Dubai Diamond Exchange, Ernie Blom, Federation of Belgian Diamond Bourses, Israel Diamond Exchange, Joshua Freedman, lab-grown diamonds, Natural Diamond Monitoring Committee, Rapaport News, Synthetic diamonds, Synthetics, Vrije Diamanthandel, WFDB, Willy Rotti, World Federation of Diamond Bourses
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