Morocco's Casablanca Stock Exchange to launch derivatives market to boost liquidity
Morocco's Casablanca Stock Exchange (CSE) will be launching a new derivatives market in the coming weeks as part of efforts to boost liquidity, reads a press release by the Moroccan Capital Market Authority (AMMC) announcing that it had approved the MASI 20 index futures contract on May 6.
CSE head Tarik Senhaji told Reuters Thursday the move aims to broaden the investor base by allowing participants to take both long and short positions. It will also enable trading a basket of stocks, particularly those in the MASI 20 index, which tracks the 20 most liquid and largest companies.
«It's the flexibility that the derivatives market allows you, which is going to add to the main market, bring more liquidity, and essentially bring more flows», Senhaji said.
This first round of derivative offerings will be followed by a broader expansion that includes contracts for interest rate futures, single-stock futures, and equity options.
In 2024, the exchange's average daily trading volume increased by nearly 70%, reaching $37.5 million. Market capitalization rose by about 20% between December 2023 and the end of 2024, hitting $77.6 billion.
Despite these gains, the exchange recorded only one new listing in 2024, and local participation remains below 1%, according to Senhaji. The CSE is now working to boost awareness and attract more domestic investors. Foreign investors currently represent around 30% of participants.
The next objective, Senhaji added, is to establish an «organic link» between Morocco's two major liquidity hubs—the stock exchange and the government bond market.
«We want to move into derivatives for interest rates in a big way, because that will connect the government bond market... with the stock market... and create some really interesting cross asset plays», he said.
The CSE is also eyeing the launch of listed Real estate investment trusts (REITs).
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Morocco's Casablanca Stock Exchange to launch derivatives market to boost liquidity
Morocco's Casablanca Stock Exchange (CSE) will be launching a new derivatives market in the coming weeks as part of efforts to boost liquidity, reads a press release by the Moroccan Capital Market Authority (AMMC) announcing that it had approved the MASI 20 index futures contract on May 6. CSE head Tarik Senhaji told Reuters Thursday the move aims to broaden the investor base by allowing participants to take both long and short positions. It will also enable trading a basket of stocks, particularly those in the MASI 20 index, which tracks the 20 most liquid and largest companies. «It's the flexibility that the derivatives market allows you, which is going to add to the main market, bring more liquidity, and essentially bring more flows», Senhaji said. This first round of derivative offerings will be followed by a broader expansion that includes contracts for interest rate futures, single-stock futures, and equity options. In 2024, the exchange's average daily trading volume increased by nearly 70%, reaching $37.5 million. Market capitalization rose by about 20% between December 2023 and the end of 2024, hitting $77.6 billion. Despite these gains, the exchange recorded only one new listing in 2024, and local participation remains below 1%, according to Senhaji. The CSE is now working to boost awareness and attract more domestic investors. Foreign investors currently represent around 30% of participants. The next objective, Senhaji added, is to establish an «organic link» between Morocco's two major liquidity hubs—the stock exchange and the government bond market. «We want to move into derivatives for interest rates in a big way, because that will connect the government bond market... with the stock market... and create some really interesting cross asset plays», he said. The CSE is also eyeing the launch of listed Real estate investment trusts (REITs).
