Morocco provides the first licenses for futures on the stock exchange

Morocco issued the first licenses for the benefit of three companies to practice the trading of future financial instruments, which is a decisive step to activate the new derivative market on the Casablanca stock exchange. The Ministry of Economics and Finance has granted licenses through three decisions for the benefit of companies: ‘CFG Marchés’, ‘BMCE Capital Bourse’ and ‘CDG Capital Bourse’, giving it the status of a member responsible for trading in the futures market for financial instruments, according to the official Gazette. At the end of last year, the Kingdom announced the launch of the futures market and financial derivatives to enable investors and businesses to hedge the risks associated with price fluctuations in the future. Increased liquidity and hedging of the risks represent the allocation of these licenses a boost for a market intended to increase the liquidity and provide hedging instruments from commercial and financial risks in the stock market, contributing to improving the efficiency of the financial system and economic growth. Also read: Morocco launches the futures market to increase the liquidity in the stock exchange and provide hedging, and investors are trading annually derivative contracts in billions of dollars in financial markets around the world. In terms of shares, derivatives can be traded by individuals or institutions by a specialized broker. The financial derivative market enables investors to trade future contracts. After the first licenses were issued, the Morocco Stock Exchange awaits receiving the first derivative contract linked to the “Mazi 20” index, which reflects the performance of the largest twentieth companies on the stock exchange, according to the deadlines for a quarterly demise, and the initial warranty in a thousand morcan per point was determined. Also read: For the first time. The market value of the Morocco Stock Exchange exceeds a trillion dirhams, restructuring of the Casablanca Stock Exchange The futures market is a type of financial market where contracts are called a contract, called financial derivatives, where investors sell and buy to buy an asset or an asset or an index of the stock exchange) at a specific price in the future with the purpose of the purpose of the stock exchange) risks associated with price fluctuations. Also read: Expectations to stimulate the financial derivative market. The futures market is managed by a subsidiary of 50 million dirhams ($ 5.5 million), according to a decision issued by the Ministry of Economics and Finance. The Casablanca company owns most of its shares, while one share is for the benefit of its general manager, Tariq Al -Sunhaji, and three other senior officials.