The Casablanca Stock Exchange is about to add a landmark instrument to its toolkit: the first cash-settled futures contract on the MASI 20 index. After an in-depth review, the product received the regulator's (AMMC) green light on 6 May 2025 (ref. VI/MAT/01/2025), confirming that all regulatory boxes are ticked and the market infrastructure is ready.

What the contract lets investors do

A futures contract is a firm agreement to buy or sell an underlying asset at a fixed price on a specified future date. Here, the asset is the MASI 20, an index tracking the 20 most liquid large-caps in Casablanca. With a single instrument, investors can:

• Hedge: offset downside in a Moroccan equity portfolio.
• Speculate: express a bullish or bearish view with leverage.
• Diversify: gain broad market exposure without buying 20 separate stocks.

Key mechanics at a glance

• Contract size: Each MASI 20 futures contract represents 10 Moroccan dirhams (MAD) per index point.
• Listed expiries: Four quarterly maturities are available at any given time—March, June, September, and December.
• Trading & pricing: Orders are handled through a centralized order book, with continuous trading. A daily settlement price is calculated and published by the market operator.
• Settlement: Contracts are settled in cash, on the business day following the expiration date.
• Initial margin: An initial margin of MAD 1,000 is required per contract at launch. This amount may be adjusted based on market conditions and volatility.

Risks you cannot ignore

• Price volatility – rapid swings in the MASI 20 can erode capital.
• Leverage – small moves in the index are magnified in a futures position.
• Liquidity – some expiries could be thinly traded.
• Systemic risk – a member default can ripple through the market; a central counter-party (CCP) mitigates this.
• Counterparty risk – covered by the CCP’s guarantee fund.

How Morocco fits into Africa’s derivatives map

By listing MASI 20 futures, Casablanca joins the short list of African exchanges with on-exchange equity derivatives. Kenya’s Nairobi Securities Exchange opened its NEXT derivatives market in 2019 with futures on the NSE 25 index and selected blue chips, while the Johannesburg Stock Exchange has run a broad, liquid futures ecosystem for decades. The Moroccan contract should therefore boost regional competitiveness, deepen local liquidity and give asset managers a risk-management tool aligned with international practice.

The AMMC’s green light signals that the contractual framework, margining rules and trading platform are all in place. For sophisticated investors, MASI 20 futures offer a new way to hedge, speculate or allocate assets efficiently—provided they fully grasp the leverage and liquidity risks outlined above.