Morocco begins the first future contract on the stock exchange, with the aim of attracting foreign investors

The operating company for the future contract market in Morocco announced today, Thursday, the launch of the first future contract linked to the “Mazy 20” index, which reflects the performance of the twentieth liquid businesses on the stock exchange. The Moroccan Capital Market Authority in the Kingdom has been agreed to launch the new financial mechanism in the Moroccan stock market earlier in May, and it is with the deadlines for a quarter of an annual right, and it comes within the reform efforts aimed at developing the financial market in the country, which must promote the implementation of major projects in the preparation of the Stock Excession. The volume of the future contract was determined by 10 dirhams per point of the indicator, and a thousand dirhams for the initial guarantee deposit, with the deadlines of the law every three months, provided the settlement is cash, according to the details of the contract. “This new step falls within the framework of the desire to strengthen the Moroccan financial market, by providing an effective tool for investors to manage risks and diversify their investment portfolios,” according to a statement from the company “management of the future contracts market”, which is attached to the Casablanca stock group. Hedging against market fluctuations in future contracts is a financial instrument that obliges the buyer and the seller to trade an asset at a predetermined price in a future date. This enables investors to hedge against market fluctuations and has an exposure to a variety of assets with one contract, according to a document issued by the Moroccan Stock Exchange. The trading volumes on the Casablanca Stock Exchange doubled last year to 60.9 billion dirhams ($ 6 billion), while the average daily trade rose to $ 56.3 million in the first quarter of this year, compared to $ 22.2 million last year. After launching the first future contracts for equity indicators, the Moroccan Stock Exchange considers other derivative products such as future interest rates, individual future stock contracts and stock options. It is a reform that is looking for by the Moroccan authorities to ensure a return to the classification of emerging markets of the “MSCI” Global Index. The market value of the Casablanca Stock Exchange exceeded the barrier of 900 billion dirhams for the first time to approach the level of other emerging markets, and the most important index achieved a return of about 22% last year, and it still maintains the profits by about 20% in the first quarter. Morocco hopes to return to the classification of emerging countries after leaving 12 years ago, and the classification contains a number of countries, including Saudi Arabia, the Emirates, Turkey, Egypt and Kuwait. This upcoming return will attract foreign investors more and increase the liquidity in the market.