The National Jeweler website has reported that Martin Rapaport presented his plan for the development of a diamond futures exchange to the members of the New York Diamond Dealers Club (DDC) and the Diamond Manufacturers and Importers Association.

Rapaport announced that a public certified-diamond auction will be held on September 17-20, as a first step towards the development of a futures market for diamonds.

Rapaport noted that several factors have contributed recently to a difficult period for the diamond industry, which is being forced to cope with record debt and a lack of liquidity. He noted that the futures market might attract new financing and development opportunities for the sector.

He added that the development of the process would take a year and a half to two years, and that while he believes in the initiative it may not prevail.