Mauritius plans futures trading

Futures trading planned for Stock Exchange of Mauritius

The Stock Exchange of Mauritius aims to start trading in futures within six months, according to a report on Reuters newsagency. The step still requires approval by the regulator, the Financial Services Commission (FSC), which previously turned down an application by the Johannesburg Stock Exchange to buy a stake in SEM.

The report quotes the SEM’s chief executive Sunil Benimadhu as saying futures trading would attract new local and foreign investors and increase capitalization. He said the first futures contracts would be on the SEM-7 index and on some of the most liquid stocks traded on the official market. The SEM-7 is made up of the largest companies by market capitalization, including Mauritius Commercial Bank, Naiade Resorts, New Mauritius Hotels, and State Bank of Mauritius.

Reuters reported an enthusiastic welcome from local market players: “There are a lot of sophisticated products on other markets, whereas in Mauritius we only have equities and T-bills,” Roshan Ramoly, Managing Director of Cim Stockbrokers, told Reuters. “The introduction of futures will offer local and international investors possibility of trading a basket of local underlying products in a cost and efficient manner.”

The SEM is one of Africa’s most dynamic stock exchanges, offering a good range of active companies. The website is http://www.stockexchangeofmauritius.com/.

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