FEDERATION OF EURO-ASIAN STOCK EXCHANGES
SEMI ANNUAL REPORT OCTOBER 2006
TIRANA STOCK EXCHANGE
Dr. Elvin Meka
General Manager
During 2004, Tirana Stock Exchange (TSE)
emerged, as a well-regulated institution,
capable of ensuring reasonable levels of
protection for various groups of interest, which
may consider and choose to use the securities
market as an investment or financing
alternative.
The most important event for 2004 was the
TSE’s development of a securities market
strategy, drafted by the TSE’s staff and based
upon the development plan for the securities
market in Albania, prepared by GMA Capital
Markets Ltd. By being aware of the special
role, the securities market plays within the
financial system, we aimed, since the TSE’s
inception, to obtain quality foreign assistance
to draw up this baseline document for the
development and functioning of the entire
securities industry in Albania. We are proud to
declare the TSE as the first institution, within
Albanian financial system, to possess a
HISTORY AND DEVELOPMENT
The Securities Act was approved by the
Parliament on 1 March 1996, paving the way for
the establishment of the Albanian Securities
Commission (ASC) on 16 April and the Tirana
Stock Exchange (TSE) on 2 May 1996. Once
the law was approved, the necessary rules and
regulations of the ASC and the TSE were
prepared and adopted.
The TSE opened officially on 2 May 1996, as
the first exchange in Albania’a financial history.
The TSE was originally established as a
department of the Bank of Albania with the goal
of spinning off as a separate institution after a
transition period of several years. At the
beginning, trading sessions were held every
Monday and Thursday. By October 1997, the
sessions were increased to every business day,
and 3- and 6-month maturity T-bills were added
to the existing instruments traded. Primary
auctions for T-bills were conducted by the TSE
until 1 August 1998.
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The most important event for 2004 was the
TSE’s development of a securities market
strategy, drafted by TSE’s staff and based
upon the development plan for the
securities market in Albania, prepared by
GMA Capital Markets Ltd.
detailed development strategy since its
commencement. On the other hand, we
managed to offer to the political factor a
complete, formal and integral document, with
clear strategic alternatives, which will serve as
a key transforming mechanism of different
endeavors into tangible results and
contributions, regarding the country’s rapid
economic growth, financial & economic
reforms. It should be noted that this plan is fully
integrated with the government program for
financial transparency and reduction of the
informal economy.
We have already deepened cooperation and
relations with the business community.
Business listing interest has just begun to leave
the empirical phase and is turning to a real
one, mainly driven by the imperative needs for
substantial fresh funds out of traditional
banking channels, consolidation of market
positions, and required respective reforms
The major change in the legal framework of the
TSE was the approval by the Parliament of
some revisions to the actual Securities Law,
which came into force in March 2001. Under
these new changes, the Ministry of Finance
took all practical steps to develop and
institutionalize the capital market in Albania
during 2002. In this way, the TSE was finally
established for the first time, in March 2002, as
an independent institution (joint-stock
company), with the sole owner the Ministry of
Finance.
The TSE obtained its full license on 1 July 2003,
thus becoming the first licensed securities
market in Albania. This license was renewed on
July 2005 and is valid until July 2007. Currently,
TSE counts five full members.
within the framework of free trade agreements.
Following this interest, the TSE, in close
cooperation with the Chamber of Commerce,
organized several promotional & training
seminars and workshops, aimed at unfurling
the capital market as a financing alternative.
On the other hand, we continued to attract
membership interest within the TSE, by adding
a new member for 2004, thus establishing
grounds for a complete institutional framework
of securities market with relevant participants.
To close, I want to thank all private and
government entities, academic circles, general
public and media for their kind understanding,
support, encouragement in our persisting
attempts toward creating the securities market
in Albania and believe that, during 2005, we will
accomplish our main objective of transforming
the TSE in a real securities market.
FUTURE OUTLOOK
The main priorities and objectives of the TSE for
2006 are as follows:
• cooperation with respective government
structures in reference to implementing the new
Tirana Stock Exchange & Securities Market
Development Strategy, including partial
privatization of strategic and non-strategic state
owned enterprises through initial public offering;
• cooperation and assistance of domestic
businesses in order to prepare the first initial
public offering,
• preparation of the facilities for possible
primary auctions of long-term Government
securities within the TSE, as well as secondary
auctions for T-Bills and corporate stocks,
• continued public education & information
campaigning to promote both the TSE & capital
market, as well as to attract domestic business
at TSE listing, by making them aware of
advantages the securities market may offer
them; and
• improvement of information technology, at
the TSE including the implementation of the
Electronic Trading System for securities.