Morocco Launches Derivatives Market with MASI 20 Futures Contract

Doha – Morocco’s Casablanca Stock Exchange (CSE) has officially begun derivatives trading. The Moroccan Capital Market Authority (AMMC) approved the first futures contract based on the MASI 20 index this week.

The MASI 20 futures contract went live on Thursday. It tracks the 20 most liquid companies among the 40 largest market caps on the Casablanca Exchange. Investors can now buy or sell the index at quarterly expirations in March, June, September, and December with cash settlement.

“It’s the flexibility that the derivatives market allows you, which is going to add to the main market, bring more liquidity, and essentially bring more flows,” CSE Chief Executive Tarik Senhaji told Reuters.

Each index point equals 10 MAD with a 1,000 MAD initial margin requirement. Trading happens continuously. The contract follows international standards, catering to both professional and institutional investors.

The move comes during a growth period for Moroccan markets. Average daily trading volume jumped by nearly 70% to $37.5 million in 2024. Total market capitalization grew about 20% from December 2023 to the end of 2024, reaching $77.6 billion.

More recent data shows continued expansion. Market capitalization rose from $64.6 billion in late 2023 to $95.5 billion as of March, according to Bloomberg.

This is just the start of a broader plan. “We want to move into derivatives for interest rates in a big way, because that will connect the government bond market… with the stock market…and create some really interesting cross asset plays,” Senhaji said.

The CSE plans to add more products soon. These include interest rate futures, single-stock futures, and equity options. Listed Real Estate Investment Trusts (REITs) are also on the horizon.

Morocco’s equities have gained 36% this year. This far exceeds the frontier market average return of 7%. These results, along with ongoing capital market reforms since 2021, have sparked talk of Morocco possibly returning to MSCI’s emerging-market status after a 12-year absence.

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“That’s going to add a lot more liquidity, a lot more dynamism,” Senhaji said in a London interview with Bloomberg. Local companies can now raise funding “quicker, more easily, to have access to a broader investor base at a time where Morocco has a lot of ambitions.”

In an important development this February, financial institutions with public participation received authorization to join Morocco’s Clearing House. This step, formalized in the Official Bulletin of February 20, 2025, represents another key building block in the infrastructure for the derivatives market.

The timing aligns with Morocco’s preparations to co-host the 2030 FIFA World Cup with Spain and Portugal. The benchmark stock index has risen about 13% since that announcement in October 2023.

Despite worldwide market turmoil, characterized by rising US tariffs and heightened geopolitical tensions, Senhaji noted that Morocco is well-positioned within the global market.

“We have a good relationship with everyone, whether it’s on the social front or the economic front, and we view ourselves as well as one of the links into international commerce and international trading,” Senhaji asserted.

The bourse saw only one new listing in 2024. Currently, retail investors make up less than 1% of the stock market. Foreigners account for roughly 30% of CSE investors. “There is a lot of potential there,” Senhaji said about increasing local participation.

Information about this new financial instrument is available on both the Casablanca Stock Exchange and AMMC websites.