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Rabat – Morocco’s Capital Markets Authority (AMMC) has announced new measures to improve stock market listings, strengthen price discovery, and protect investors on the Casablanca Stock Exchange.
The regulator said it has raised the maximum price fluctuation limit for newly listed shares during their first days of trading, as part of broader efforts to enhance the efficiency and attractiveness of Morocco’s financial market.
Under the new rules, which took effect on June 23, newly listed equity securities will be allowed to rise or fall by up to 20% from their reference price during the first five trading sessions following their market debut.
The measure is intended to allow share prices to adjust more effectively to supply and demand conditions during the critical early stages of trading, which would help the market establish a fair valuation for newly listed companies.
After the initial five trading sessions, the shares will return to the standard daily fluctuation limits currently in place on the Casablanca Stock Exchange, which is 10% for continuous trading and 6% for fixed-price trading.
Strengthening market integrity
Alongside the new trading threshold, the AMMC renewed its call for market participants to adhere to best professional practices designed to ensure fair trading and protect investors.
The regulator urged brokers and other financial market professionals to avoid submitting duplicate orders during the pre-opening phase and to cancel any duplicate orders during pricing sessions to prevent disruptions that could affect the integrity of order books.
It also advised traders not to enter orders before the official start of the pre-opening phase through the Trader Work Station platform, warning that doing so could lead to large numbers of rejected orders and place unnecessary pressure on trading systems.
The authority further stressed the importance of respecting the time priority of orders and ensuring proper oversight of discretionary portfolio management orders. It also reminded brokerage firms not to cancel client orders without formal instructions or recorded telephone authorization on designated trading lines.
Focus on investor protection
The AMMC also called on market participants to prepare their systems for higher trading volumes that often accompany newly listed securities. It recommended reviewing and adjusting the capacity of online trading platforms to handle expected spikes in activity during initial pricing sessions.
The regulator also noted the need for stronger internal monitoring and compliance mechanisms, including real-time supervision of trading activities to ensure adherence to market rules.
Investor protection remains a key priority, the AMMC said, urging financial professionals to actively advise clients and warn them against orders that could disrupt market operations or trigger excessive price volatility.
