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Morocco World
08-05-2025
- Business
- Morocco World
Morocco Launches Derivatives Market with MASI 20 Futures Contract
Doha – Morocco's Casablanca Stock Exchange (CSE) has officially begun derivatives trading. The Moroccan Capital Market Authority (AMMC) approved the first futures contract based on the MASI 20 index this week. The MASI 20 futures contract went live on Thursday. It tracks the 20 most liquid companies among the 40 largest market caps on the Casablanca Exchange. Investors can now buy or sell the index at quarterly expirations in March, June, September, and December with cash settlement. '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,' CSE Chief Executive Tarik Senhaji told Reuters. Each index point equals 10 MAD with a 1,000 MAD initial margin requirement. Trading happens continuously. The contract follows international standards, catering to both professional and institutional investors. The move comes during a growth period for Moroccan markets. Average daily trading volume jumped by nearly 70% to $37.5 million in 2024. Total market capitalization grew about 20% from December 2023 to the end of 2024, reaching $77.6 billion. More recent data shows continued expansion. Market capitalization rose from $64.6 billion in late 2023 to $95.5 billion as of March, according to Bloomberg. This is just the start of a broader plan. '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,' Senhaji said. The CSE plans to add more products soon. These include interest rate futures, single-stock futures, and equity options. Listed Real Estate Investment Trusts (REITs) are also on the horizon. Morocco's equities have gained 36% this year. This far exceeds the frontier market average return of 7%. These results, along with ongoing capital market reforms since 2021, have sparked talk of Morocco possibly returning to MSCI's emerging-market status after a 12-year absence. Read also: Morocco to Help Mauritania Create Nouakchott Stock Exchange 'That's going to add a lot more liquidity, a lot more dynamism,' Senhaji said in a London interview with Bloomberg. Local companies can now raise funding 'quicker, more easily, to have access to a broader investor base at a time where Morocco has a lot of ambitions.' In an important development this February, financial institutions with public participation received authorization to join Morocco's Clearing House. This step, formalized in the Official Bulletin of February 20, 2025, represents another key building block in the infrastructure for the derivatives market. The timing aligns with Morocco's preparations to co-host the 2030 FIFA World Cup with Spain and Portugal. The benchmark stock index has risen about 13% since that announcement in October 2023. Despite worldwide market turmoil, characterized by rising US tariffs and heightened geopolitical tensions, Senhaji noted that Morocco is well-positioned within the global market. 'We have a good relationship with everyone, whether it's on the social front or the economic front, and we view ourselves as well as one of the links into international commerce and international trading,' Senhaji asserted. The bourse saw only one new listing in 2024. Currently, retail investors make up less than 1% of the stock market. Foreigners account for roughly 30% of CSE investors. 'There is a lot of potential there,' Senhaji said about increasing local participation. Information about this new financial instrument is available on both the Casablanca Stock Exchange and AMMC websites. Tags: Casablanca stock exchange
Ya Biladi
08-05-2025
- Business
- Ya Biladi
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).
TimesLIVE
08-05-2025
- Business
- TimesLIVE
Moroccan exchange to launch derivatives within weeks, CEO says
Morocco's Casablanca Stock Exchange expects to launch a new derivatives market within weeks as part of an effort to boost liquidity in one of Africa's largest exchanges, its CEO told Reuters. CSE CEO Tarik Senhaji said derivatives would expand the investor base by allowing participants to take long and short positions and enable them to trade a basket, particularly tracking the MASI 20, which includes the 20 largest and most liquid stocks. '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. The derivative offerings are aimed at being the first part of a broader expansion, with contracts for interest rate futures, single-stock futures and equity options set to follow. In 2024, the exchange's average daily trading volume rose by nearly 70% to $37.5m (R683.7m), and total market capitalisation rose some 20% from December 2023 to the end of 2024, to $77.6bn (R1.4-trillion). But the bourse saw only one new listing in 2024 and participation of the local population is also less than 1%, Senhaji said. CSE is working to boost local familiarity with the exchange to attract more domestic investors. Foreigners account for roughly 30% of the CSE's investors, Senhaji said. The CSE's next target is to create an 'organic link' between Morocco's two biggest pools of liquidity — the 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 exchange is also looking to launch listed REITs. Senhaji said that despite worldwide market turmoil, marked by rising US tariffs and heightened geopolitical tensions, the country was well positioned. He noted that the proposed new US tariff for Morocco was set at the lowest level of 10%. 'We have a good relationship with everyone, whether it's on the social front or the economic front, and we view ourselves as well as one of the links into international commerce and international trading,' Senhaji said.
