Chicago-based GemShares has joined with the NASDAQ OMX Group to develop the GemShares Global Investment Grade Standard (GIGS) Diamond Basket Index.

The rules-based diamond basket index will operate like other NASDAQ Indexes, tracking prices on diamonds that have met the GIGS standards.The price on the index will be representative of a number of diamonds and not just one single gemstone. However, the index is said to be fully transparent so price movements of individual diamonds can be tracked.

In August last year, GemShares secured a patent for its GIGS pricing mechanism, which included diamonds graded by the Gemological Institute of America (GIA), from D to J colour; IF to SII clarity; 0.50 to 2.20 carats (preferred range); round brilliants with 57 to 58 facets; and “excellent” or “very good” cut grade. GemShares' management team, which spans the diamond and financial industries, said there was no set date for the launch of the rules-based index because it was still formulating the structure for gathering the prices on the diamonds.