The Casablanca Stock Exchange (CSE) in Morocco plans to introduce a new derivatives market over the next few weeks, according to its CEO, as an initiative to increase liquidity.
Reuters
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Tarik Senhaji, who leads CSE, mentioned that this step intends to expand the range of investors involved by permitting stakeholders to adopt both bullish and bearish strategies. Additionally, it will facilitate the exchange of a group of shares, specifically from the MASI 20 index, which monitors the top 20 firms based on liquidity and size.
“It’s the flexibility offered by the derivatives market that will enhance the primary market, increase liquidity, and ultimately attract more transactions,” Senhaji stated.
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 saw its average daily trading volume jump by roughly 70%, totaling $37.5 million. Between December 2023 and the close of 2024, market capitalization climbed approximately 20% to reach $77.6 billion.
Even with these advancements, the stock exchange saw just one new listing in 2024, and local involvement stays under 1%, as stated by Senhaji. To address this, the Casablanca Stock Exchange (CSE) is focusing on increasing visibility and drawing more homegrown investors into the market. At present, foreign investors make up approximately 30% of those involved.
Senhaji further stated that the upcoming goal is to create an “integrated connection” between Morocco’s two primary liquidity centers—the stock exchange and the government bond market.
“We aim to significantly expand our presence in interest rate derivatives because this will link the government bond market… with the equity market…and generate some truly intriguing opportunities across different assets,” he stated.
The CSE is also considering the introduction of publicly traded Real Estate Investment Trusts (REITs).
Regarding the fluctuations in the international markets, Senhaji stated that Morocco continues to maintain a robust stance. He pointed out that the recently suggested American duty on Moroccan products has been established at a comparatively modest rate of 10%.
“We maintain positive relations with all parties, be it socially or economically, and we see ourselves as an integral part of global trade and international commerce,” he stated.