The organization of brokerage firms

The brokerage firms: “In principle broker in Morocco are composed of four departments.
In order to minimize conflicts of interest which may expose the broker, Circular No. 01/10 of January 4, 2010 said incompatible functions and put the bonds to set up an organization adapted to the size of the stock company, its activities at its specificities volume transaction processing including the circular has set up three systems across all brokerage firms.
§ 1: Departments:
These four departments listed below.
* The commercial department
This department is responsible for two areas:
The clerk-bargaining role to execute client orders and process transactions for consideration so that his client is served first.
The trader, whose role is to negotiate large blocks of shares in listed companies on the market for direct sales (market block is also responsible for causing movement to the purchase or sale by the intentional
* The research department
It is considered the victim of a brokerage firm, because he is allowing the brokerage firm to drain the fat levels of Moroccan and foreign institutional
Its main role is to conduct studies on listed companies
* The financial engineering department
The department’s role is to assist and advise companies that want:
Raise funds through the IPO and / or arguments of share capital
Achieve external growth through takeover (tender offers) or OPE (bids Exchange)
* The department back-office
It is responsible for the registration and settlement of transactions (for settlement for securities). So he is in relationship with the depositary. Also called “back office as it is not visible to the customer and the back office provides administrative and technical processing of transactions by the front office it is in customer relationship (Table trading)
§ 2 The systems put in place:
To improve the front office brokerage firms have three systems
* The information system
This system ensures an adequate level of performance and security. Article 19 of Circular No. 01 / 10 mentions in paragraph 2 features to be included in this system. is cited as an example:
-The formalization of the relationship with customers
-The processing of trading orders
-The assignment of the executions and, where applicable: securities custody and transaction processing to manage customer under a mandate.
The information system should also allow editing of regulatory documents and information relating to the areas mentioned in Article 19 of the Circular.
It should be noted that the brokerage firm, in case of malfunction of its information system is obliged to notify without delay to CDVM specifying the measures taken or to be taken to remedy
* The telephone registration system
Brokerage firms must have this system can automatically record and performance in all market orders placed by phone during or outside of the trading session.
The telephone registration system must allow for fast and multi market orders by telephone. These investigations must be at least by the following criteria
-The date and time
-The station ID has been received or the call
So any failure of the telephone registration must be notified without delay to CDVM.
* The time-stamping system
Brokerage firms must carry out orders from their customers as quickly as possible while informing them clearly and quickly. Hence the need for any brokerage firm to develop a time-stamping system installed at the whole range of jobs which are transmitted or received trading orders.
It is more than necessary to have a timestamp replacement to deal with any malfunction of this system.
In addition to the broker must ensure the time synchronization between different systems (system information, time stamp and telephone registration system) and time of the rating system of the Casablanca Stock Exchange.
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- Headling Guide for the award in Morocco p. 336-337.
- Circular No. 01 / 10 of January 4, 2010 articles (19 to 20 – 21)