Since March 1997, the Casablanca stock exchange functions under a new electronic quotation system, where all transactions are first to pass through the “Central Market.”
The bourse’s negotiation system is therefore a centralized one governed by orders and controlled by the organization of the stock market. In certain cases, large institutional investors must trade via the “Marché de Blocs” due to a lack of demand for and the inability of large trading volumes to be transacted through the Central Market.
The Casablanca stock exchange functions under three trading sessions:
The “pre-opening stage” is where orders are accumulated in the trading books, without any form of transaction intervention. Trading in the first stage is sparse.
The second stage—known as the “opening stage”—is one where an electronic system calculates an equilibrium price, or “fixed price”, for each stock according to the orders placed in the pre-opening stage. The second stage allows for greater trading volumes to take place.
The last stage known as the “continuing stage” is one where trading takes place in a continuous fashion. In this stage, all new placed orders can immediately trigger one or several additional transactions.
© 1969 Mena Report (www.menareport.com)