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Morocco's Capital Market Authority (AMMC) has raised the maximum daily price fluctuation limit for newly listed shares to 20% during their first five trading sessions, as part of measures aimed at improving price formation during initial public offerings (IPOs), the regulator announced in a press release on Thursday.
The new rule, effective June 23, allows newly listed equities to move up or down by as much as 20% of the reference price during their first five trading days. After that period, the standard daily limits will apply: 10% for continuous trading and 6% for fixing sessions.
Alongside the change, the AMMC reminded market participants of best practices to ensure fair and orderly trading during IPOs. These include avoiding duplicate orders during the pre-opening phase, respecting the chronological order of order execution, refraining from cancelling managed orders without explicit client instructions and recorded telephone authorization, and avoiding the submission of orders before the pre-opening session to prevent technical disruptions.
The regulator also urged brokerage firms to strengthen the technical capacity of their online trading platforms to cope with higher trading volumes during new listings, reinforce internal compliance controls, and properly advise clients against placing orders that could disrupt the market or trigger excessive price volatility.
According to the AMMC, the measures are intended to support the development of Morocco's stock market while ensuring transparent and secure trading conditions and strengthening companies' access to market financing.
