Signing of a memorandum of understanding on the opening up of the Casablanca Stock Exchange capital : 25/11/2015

Signing of a memorandum of understanding on the opening up of the Casablanca Stock Exchange capital

Mr. Mohamed BOUSSAID, Minister of Economy and Finance, chaired Wednesday, November 25th, 2015 at the headquarters of the Casablanca Stock Exchange, the signing ceremony of a memorandum of understanding between the State, the Moroccan financial market supervisory body (le Conseil déontologique en valeur mobilières) , the current shareholders of the Stock Exchange (brokerage firms), the prospective shareholders (banks, insurance companies, the “Caisse de Dépôt et de Gestion ” and Casablanca Finance City Authority) that agree on the exchange scheme. This ceremony was also marked by the presence of representatives of Bank Al Maghrib and key industry associations.

In his speech, Mr. Mohamed BOUSSAID expressed his deep gratitude to different financial institutions present for their dedication and high sense of responsibility to ensure the success of this project and emphasized the formality of this historic event that reflects the launch of an important reform for the development of the site.

He also paid tribute to all brokerage firms for the work performed that enabled the construction o​f a modern stock exchange and carry out the various transitions and reforms experienced by this institution.

The Minister also stressed the need for the exchange to initiate a new phase that will allow other shareholders and major market players to join the brokerage firms to provide new impetus to this institution and reach a new step in its development. This new stage is considered necessary given the ambitions and equally historic turning point that our economy and our country reach in respond to the directions of HM The King on the need to move to a new level of inclusive growth and open on Africa as part of the co-development approach and co-emergence of our country.

Achieving these goals requires strengthening the role of the stock market in the financing of the economy and its role as a means of promoting regional integration.

In addition, Mr. Mohamed BOUSSAID outlined the strategies of this Memorandum of Understanding including:

- Institution of demutualization of the stock exchange by a wide market agreement rather than by a law agreement so that this project enjoys the support and involvement of the entire financial market;

- Registration of the demutualization process as part of a wider project which is that of building an integrated organization of the entire market infrastructure;

- The outcome is a balanced scheme that involves the leading market players in the development of the site;

- ​The consolidation of the objective to transform Casablanca financial center to become an integrated financial hub in its regional area, able to meet the needs of issuers and investors including Africans;

The integration of this project in a wider strategic vision of the market recovery and development that focuses, on the one hand, on strengthening the supervision and transparency of the market and market development, on the other, through the establishment of a new generation of reforms and financial tools that should help improve the market depth and liquidity.

Mr. Mohamed BOUSSAID also presented the key project axes. The most prominent are:

The new constitutional structure of the company managing the Casablanca Stock Exchange:

​This company will be converted into a holding company whose purpose is the management of the cash market as well as the involvement as a reference shareholder in the created market institutions including the company managing futures market and the clearing house.

The shareholding of the Casablanca Stock Exchange: The share capital of the Stock Exchange will be divided between banks, the “Caisse de Depot et de Gestion”, independent brokerage firms, insurance companies and Casablanca Finance City Authority. Opening up to an international strategic partner is also considered. The composition of the Board of the Casablanca Stock Exchange: Given the role of this body in setting up strategic directions, this agreement provides for a balanced distribution of powers between the different classes of shareholders. The board of directors will also include independent directors. The renewal of the concession contract: An amendment of the specifications linking the State to the managing company is expected to record the Exchange bonds in order to implement new market infrastructure for the launch of the futures market. In addition, the concession contract will be renewed for a further period to enable the Commission to implement this new organization scheme and market development. ​ Finally, Mr. Mohamed BOUSSAID again thanked the participants for their support and the spirit of consensus behind this project and urged all stakeholders to continue this trend so as to allow the Casablanca Stock Exchange to fully play its role in financing the economy and guarantee and reassert the regional dimension of Casablanca financial center.​ ​