Where Is the Futures Market At?

Since the approval granted by the Moroccan Capital Market Authority (AMMC) for the information document of the future Masi 20 index contract, the futures market project has established itself as one of the most structural reforms for the Casablanca financial center.

According to Mohamed Filali, president of the Moroccan Association of Trading Rooms (AMSM) and director of capital market activities at Attijariwafa bank, “since obtaining the AMMC approval for the futures contract on the Masi 20 index, the project has passed several major milestones.”

On the technical side, the trading platform has been installed, tested, and validated with trading members, while connections with clearing members have ensured a stable and secure flow between the Stock Exchange and operators.

This work has been accompanied by sustained institutional dialogue. “A comprehensive market-making system has been designed to ensure the product’s liquidity from its launch,” explains Filali. Discussions between the Casablanca Stock Exchange and the AMSM’s “Futures Market” Commission have made it possible to define key parameters and future commitments of market makers.

Result: a technical and regulatory framework compliant with international standards, yet adapted to the Moroccan reality.

Brokerage firms, the operational link

The Ministry of Economy and Finance has officially issued the first intermediary approvals to CFG Marchés, BMCE Capital Bourse, and CDG Capital Bourse, marking a decisive step in the implementation of the futures market.

For Bachir Tazi, executive director and Partner at CFG Bank, these approvals open a new era for brokerage firms (SDB). “The launch of the futures market complements the range of services offered by licensed brokerage firms,” he explains. “SDBs will play a pivotal role between the investor, the market, market makers, and the clearinghouse.”

In practice, these intermediaries will be responsible for collecting and validating client orders, verifying their financial coverage, and then transmitting them to the trading platform.

Once operations are executed, “they ensure the transmission of operations to the clearinghouse, which substitutes for the parties to guarantee the successful completion of the transaction,” details Tazi.

This role does not end with execution: brokerage firms will also monitor open positions, calculate margins, and transmit margin calls when necessary. As the executive summarizes, “they act as a link for advice, execution, and trust.”

For their part, market makers, primarily from bank trading rooms, will operate under specific agreements, committing to continuously quote bid and ask prices for minimum volumes. These agreements, still being finalized, will complete the operational chain of the system.

Successful tests before the big leap

On September 20, the Casablanca Stock Exchange, trading members, and clearing members conducted a full-scale test of the platform. Objective: to validate the entire operational chain, from order entry to clearing.

The results were encouraging. “Simulations of margin calls, trading suspensions, and position adjustments confirmed the robustness and reliability of the system,” says Filali. A second testing phase, scheduled from October 21 to 24, aims to simulate several full trading days, including opening, closing, and rolling over positions.

While the technical structure is now ready, final adjustments involve signing market-making agreements, finalizing approvals for clearing members, and upskilling operational teams.

Filali emphasizes that “all indicators are now green,” estimating that the future Masi 20 “equips the Moroccan market with a modern tool for hedging and risk management, serving the competitiveness of the Casablanca financial center.”

Toward a more liquid and efficient market

For Bachir Tazi, the impact of the future Masi 20 goes beyond the technical dimension. “The launch of the futures market will constitute a real transformation for the Casablanca financial center,” he states, adding that it will allow the Stock Exchange “to transition from a ‘Long Only Cash Equity Market’ to a more sophisticated market, where both upward and downward movements will represent investment and wealth creation opportunities.”

In the medium term, the futures market should also enhance the liquidity of the spot market: market makers, to hedge their derivative positions, will be led to intervene more on the underlying stocks.

As Tazi concludes, “the increase in interventions in the futures market will contribute to better price formation in the spot market and thus better anchor them to the fundamentals of listed companies.”

The Moroccan futures market is entering its final phase before launch. Beyond the technicality of the system, it is a strong symbol of the modernization of the Kingdom’s capital markets: a signal of confidence, discipline, and openness, driven by now better-coordinated institutional players.