Morocco to start futures contracts tracking main companies index

By Ahmed Eljechtimi

RABAT, Dec 2 (Reuters) - Morocco's first futures contracts will be based on the MASI 20 index, which tracks the top 20 firms by market capitalisation, the North African country's bourse regulator said on Monday.

The AMMC, together with the central bank and the finance ministry, said last month that the market was ready to launch a derivatives market and a clearing house starting with futures.

"Extensive dialogue involving all relevant stakeholders led to a consensus around the suitability of starting with futures contract on the MASI 20 index," said AMMC chief Nezha Hayat.

"The Derivatives Market Coordination Body (ICMAT) already started receiving licensing applications from future trading and clearing members, and first approvals are expected to be issued in the near future," she told Reuters by email.

Derivatives would introduce risk management tools, widen the investor base and strengthen the international position of the Moroccan market, she said.

The introduction of futures was a first phase within a regulatory framework that also allows for other instruments such as options and swap contracts.

"This first phase will be an occasion to monitor emerging risks and ensure that adapted supervisory tools are in place to support further development and increasing complexity of financial products," she added.

Hayat said that by "closely monitoring market activity and emerging risks" Morocco would be able to address future needs, which may include "more sophisticated instruments based on criteria such as liquidity and developmental potential". (Reporting by Ahmed Eljechtimi; Editing by Alexander Smith)