This market, launched in parallel with a clearing house (CCP), offers financial instruments to improve the liquidity of the markets, to innovate financially and above all to offer hedging solutions against risks for various players, whether whether companies, banks or institutional investors.
It is part of a global framework for the transformation and modernization of market infrastructures which constitute an essential transmission belt for the proper functioning of capital markets.
Speaking on this occasion, the Minister of Economy and Finance, Nadia Fettah, indicated that this transformation carried out at the level of the capital market is based on a series of reforms and major restructurings, in particular the structuring of the Stock Exchange. Casablanca as a Holding, which makes it possible to group the different activities of the capital market, including the cash market and the futures market, under the same entity.
“This transformation is based on essential pillars, namely the structuring of the Casablanca Stock Exchange into a holding company which will lead to the subsidiarization of all activities in the value chain: the cash market, the futures market and the CCP, with a significant stake in Maroclear,” she said.
And to recall that derivative products have been, since the outbreak of the international financial crisis of 2008, at the center of the concerns of the Regulatory Authorities who have initiated, over several years, a major process of reforms on an international scale, with the implementation of regulatory requirements in terms of capital, margins, clearing by central counterparties and reporting.
For her part, the president of the Moroccan Capital Market Authority (AMMC), Nezha Hayat, affirmed that this project is in line with the recommendations of the New Development Model of Morocco (NMD), stressing that the Introduction of the futures market will provide new options for industry players to protect themselves against market risks.
Indeed, this infrastructure will provide the security and transparency necessary to strengthen market stability, ensure efficient management of transactions and thus preserve the integrity and confidence of investors.
For his part, Abderrahim Bouazza, Director General of Bank Al-Maghrib (BAM) maintained that this reform, which initially introduces the “Index Futures” product, marks a turning point in the diversification of financial instruments, aiming to increase the depth and competitiveness of the Moroccan capital market.
Furthermore, he highlighted the evolution of three key compartments of the capital market, namely the public debt market, the money market and the foreign exchange market, highlighting the depth, liquidity and transparency of the public debt market, which now constitutes a reference for other segments.
Thus, he indicated that BAM is preparing the launch of two additional segments at the beginning of 2025, namely an interbank over-the-counter market for overnight rate swaps and an interbank forward foreign exchange market also allowing economic operators to cover exchange rate risks.
Regarding international standards, Tarik Senhaji, general director of the Casablanca Stock Exchange, assured that the transformation of the Stock Exchange into a stock exchange group, combined with new operations such as the acquisition of a stake in the central depository, is part of an ambitious vision to modernize the Moroccan financial sector and raise it to the best international standards.
“This will provide Morocco with an infrastructure that meets the best international standards,” he said, emphasizing the importance of this development for the competitiveness of the Casablanca Stock Exchange.
And to conclude that the main innovation introduced during this event is the establishment of two new sectors, the financial CCP, also called central counterparty, and the futures market or derivative market.
Interview Between Time.news Editor and Financial Market Expert
Time.news Editor (T.N.E): Welcome, everyone, to this engaging session! Today, we have the privilege of interviewing Dr. Linda El-Mansouri, a renowned expert in capital markets and financial regulations. She’s here to discuss the recent transformative developments in Morocco’s capital market. Dr. El-Mansouri, thank you for joining us!
Dr. Linda El-Mansouri (D.L.E): Thank you for having me! It’s a pleasure to be here.
T.N.E: Let’s dive right in. The recent launch of a new market alongside a clearing house (CCP) has been significant. Can you explain how this initiative is expected to enhance liquidity and innovative financial solutions in Morocco?
D.L.E: Absolutely! The introduction of this market, coupled with a CCP, is aimed at significantly improving market liquidity. By offering diverse financial instruments, it allows players such as businesses, banks, and institutional investors to hedge against risks more effectively. This means they can protect their investments and manage their financial exposure in a much more sophisticated manner.
T.N.E: Interesting! The restructuring of the Casablanca Stock Exchange into a holding company appears to be a crucial step. Can you elaborate on this transformation and how it integrates different market activities?
D.L.E: Yes, this restructuring is pivotal. By consolidating the cash market, futures market, and CCP under one entity, it enhances the efficiency of the capital market infrastructure. This integration facilitates better communication and coordination among the various market activities, which is essential for maintaining transparent and stable trading environments.
T.N.E: The Minister of Economy and Finance, Nadia Fettah, mentioned that these changes are part of a broader modernization program. How is this transformation aligned with Morocco’s New Development Model (NMD)?
D.L.E: The NMD emphasizes economic diversification and sustainability, which is precisely what these reforms are targeting. By introducing a futures market, the new infrastructure will provide industry players with innovative tools to mitigate risks. This is crucial for supporting various sectors of the economy and promoting growth in a stable financial environment.
T.N.E: You touched upon risk management. Given the lessons learned from the 2008 financial crisis and subsequent regulatory reforms, how do you think these changes will address investors’ concerns about market stability and integrity?
D.L.E: The reforms post-2008 underscored the importance of a robust regulatory framework. The introduction of the CCP and new derivatives will bring much-needed security and transparency to transactions. These features are essential in fostering investor confidence and ensuring the stability of the markets, which are paramount for long-term investment growth.
T.N.E: Abderrahim Bouazza from Bank Al-Maghrib mentioned that this reform marks a diversification of financial instruments in Morocco. How will instruments like the “Index Futures” contribute to this diversification?
D.L.E: The launch of instruments like Index Futures can offer investors exposure to broader market trends, allowing them to make more informed decisions. These derivatives help manage risks associated with price fluctuations in underlying assets. Thus, offering such products not only diversifies the market but also aligns with global best practices, making Morocco’s markets more attractive to both domestic and international investors.
T.N.E: In your opinion, what are the long-term implications of these reforms for Morocco’s capital markets?
D.L.E: I believe these reforms will position Moroccan capital markets as a key player in the region. They enhance resilience against economic shocks and provide a framework for sustainable growth. With increased investor confidence, we could see more foreign investment coming into the market, further supporting economic development.
T.N.E: Thank you, Dr. El-Mansouri, for your insights! It’s clear that Morocco is taking significant steps to modernize its capital markets, which will undoubtedly bring new opportunities for growth and stability.
D.L.E: Thank you for having me! It was an enlightening discussion.
T.N.E: And thank you to our audience for tuning in. Stay tuned for more updates on developments in the financial world!