Signed on the sidelines of a conference organized by the Ministry of Economy and Finance, the Moroccan Capital Market Authority (AMMC) and Bank-Al-Maghrib (BAM), dedicated to the launch of the futures market, these agreements stipulate the institutional and organizational transformation of the Casablanca Stock Exchange into a holding company.
This is a global memorandum of understanding signed between the Ministry of Economy and Finance, the AMMC, BAM, the Moroccan Insurance Federation (FMA), the Casablanca Stock Exchange, the Professional Group of Banks of Morocco (GPBM) and Maroclear.
This protocol marks a decisive step towards the creation of the new Casablanca Stock Exchange Group. It is part of the continuity of the reforms initiated by Morocco for several years, with the objective of strengthening the achievements of the Casablanca Stock Exchange and allowing it to position itself as a strong regional stock exchange, equipped with a market infrastructure integrated, and complies with the best international standards.
Concluded between the GPBM and the Casablanca Stock Exchange, the second memorandum of understanding concerns the clearing house (CCP), an essential component of the futures market, and is an extension of the aforementioned framework protocol.
This memorandum of understanding aims to restructure the share capital of the CCP, between the Holding Bourse de Casablanca, up to 51%, and credit institutions, up to 49%.
Concerning the partnership agreement, it concerns the development of the stock market, and was signed between the Casablanca Stock Exchange and various stock market stakeholders, with the support of the AMMC.
This agreement involves, alongside the Casablanca Stock Exchange, the General Confederation of Moroccan Enterprises (CGEM), the FMA, the Association of Moroccan Management Companies and Investment Funds (ASFIM), the Moroccan Association of Investors in Capital (AMIC), the Moroccan Association of Companies Making Public Appeals for Savings (APE) and the Professional Association of Casablanca Stock Exchange Companies (APSB).
The aim of this partnership is to mobilize the various stakeholders of the stock market in order to strengthen the role of the Casablanca Stock Exchange holding company as a key player in financing the economy.
This agreement echoes the roadmap signed on November 28, 2023, structured around four pillars, namely, the strengthening of institutional support, the development of an incentive framework, support for SME members of the CGEM and communication enhanced to increase market visibility.
These signatures were preceded by the third meeting of the Capital Markets Committee (CMC), during which the transformation plan of the Casablanca Stock Exchange Managing Company into a holding company was validated.
This transformation is a continuation of the demutualization process of the Stock Exchange, concluded in 2016, and is aligned with the requirements of the Specifications linking the said company to the State.
Title: Transforming the Casablanca Stock Exchange: An Interview with Dr. Leila Benali, Expert in Financial Markets
Time.news Editor (TNE): Good afternoon, Dr. Benali, and welcome to our interview. It’s a pleasure to have you with us today to discuss the latest developments in the Moroccan financial landscape.
Dr. Leila Benali (LB): Thank you! It’s great to be here. The recent agreements regarding the Casablanca Stock Exchange are indeed significant for Morocco’s financial future.
TNE: Indeed! Just to set the stage, could you summarize what this global memorandum of understanding entails and its key players?
LB: Absolutely. This memorandum was signed during a crucial conference organized by Morocco’s Ministry of Economy and Finance, the Moroccan Capital Market Authority (AMMC), and Bank-Al-Maghrib (BAM). It includes several key stakeholders such as the Moroccan Insurance Federation, the Professional Group of Banks of Morocco, and Maroclear, along with the Casablanca Stock Exchange itself. The primary goal is to transform the Stock Exchange into a holding company, paving the way for a robust Casablanca Stock Exchange Group.
TNE: That’s a significant shift. Can you elaborate on the objectives behind this transformation?
LB: Certainly. This transformation is aimed at strengthening the Casablanca Stock Exchange’s position within the region. Morocco has been pushing reforms for several years now, looking to enhance the stock exchange’s infrastructure and align it with international best practices. This move is vital as it provides a more integrated market environment and boosts investor confidence, which is essential for regional economic growth.
TNE: We also saw mention of the clearing house (CCP) and its importance for the futures market. Could you explain the role of the CCP and its integration into this new structure?
LB: The clearing house plays a crucial role in risk management within financial transactions, especially when it comes to futures trading. The second memorandum of understanding aims to restructure the share capital of the CCP significantly. By having the Holding Bourse de Casablanca acquire 51%, alongside credit institutions with a 49% stake, we aim to ensure stability and promote confidence among market participants. It’s all about creating a safer and more efficient trading environment.
TNE: It sounds like these steps are all interconnected. How do you see this evolving into a more competitive regional exchange?
LB: With these changes, the Casablanca Stock Exchange will have the ability to offer a range of financial products, including new futures contracts, which are generally appealing to both local and international investors. By enhancing its market infrastructure, the exchange can attract larger volumes of trading activity, ultimately positioning itself as the go-to exchange for investors in North Africa and beyond.
TNE: What challenges do you think Morocco might face in this transformation process?
LB: Challenges are inevitable. One of the main hurdles will be ensuring that all stakeholders align their interests and work collaboratively toward common goals. There’s also the task of education and outreach to investors about new products and services. Lastly, technological investment will be essential to support these developments and ensure the exchange operates efficiently.
TNE: Looking ahead, what impact do you envision this transformation having on the Moroccan economy?
LB: If executed properly, the transformation could stimulate investment, both local and foreign, leading to greater liquidity and market capitalization in the stock exchange. This can create a ripple effect, fostering entrepreneurship and innovation in the broader economy. Ultimately, we could see Morocco positioned as a key player in the African financial markets.
TNE: Thank you, Dr. Benali. It’s exciting to think about the potential impact of these developments. Is there anything you would like to add before we conclude?
LB: Only to emphasize the importance of continuous support from both the government and private sector to ensure these reforms are successful. The future of the Moroccan financial market depends on a collaborative and strategic approach.
TNE: Thank you for your insights, Dr. Benali. We look forward to seeing how these developments unfold in the coming years.
LB: Thank you for having me!