FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT APRIL 2011
TIRANA STOCK EXCHANGE
Anila Fureraj
General Manager
Tirana Stock Exchange is the only securities
market in Albania. The development of
transparent capital market, based on
international standards and activation of capital
market as a trading platform for different
financial instruments, is the main objective of
TSE.
The presence of an active domestic capital
market and efficient, would give companies the
option to increase capital by understanding
that brings real benefits for the capital market.
An active and efficient capital market will
expand the capital market in Albania by
providing various investment opportunities and
mechanisms to ensure efficient and
HISTORY AND DEVELOPMENT
TSE is the first and the only stock exchange in
Albania, established in 1996 originally as a
department of Bank of Albania (BoA). The
activity at hand, at that time, was the trading of
the T-Bills with 12 months-to-maturity, five series
of government bonds and privatization
vouchers. It also held out the primary auctions
for Treasury Bills until August 1st, 1998, than
this market moved to Monetary Operations
Department, at BoA.
In March 2002, TSE was structured as a joint
venture company and a state – owned one,
with the only shareholder Minister of Finance
(100% of the shares). It’s authorized and
subscribed Capital is equal to 20,000,000 lek
(~EUR163,000) with a no. of shares of 20,000.
On 07.13.2007, after several periodical - limited
licenses since 2002, the Albanian Financial
Authority, granted Tirana Stock Exchange with
an infinite validity license. The license
empowers TSE “To operate as a securities
market for the trading of Government /
Corporate Debt Securities and Capital
securities” with no time restriction.
Market Structure -Trading
TSE is an order-driven “open outcry – call
market” which uses a manual trading system
with physical presence of licensed
commissioners (members) on the trading floor.
There is no electronic trading system so far.
Securities’ prices on the trading sessions are
set according to “single price method”, while
trading is held:
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The development of transparent capital
market, based on international standards
and activation of capital market as a trading
platform for different financial instruments,
is the main objective of TSE.
transparent pricing will increase access to
finance for Albanian companies.
As requirement of new law “On Securities”
were draw the Rules of Tirana Stock Exchange
that was approved by Financial Supervisory
Authority Board. In these rules are include in a
systematic manner rules of membership,
listing, trading, clearing and settlement of
transaction on securities that will be trading in
Tirana Stock Exchange.
Rules of Tirana Stock Exchange were prepared
and adapted with contemporary general
principals for functioning of capital market of
European countries and have like purpose
- Every Monday and Wednesday, from 10.00 -
12.00, for the official market.
- Every Friday for trading in the parallel market.
The eligible tradable instruments are: shares,
government papers and corporate bonds. In
order to trade, TSE commissioners should be
physically presented in the trading sessions.
Each trading session is conducted in two
rounds. Organized as an auction market, TSE
calculates a single price for each tradable
instrument, at the end of each trading day.
Clearing and settlement for every type of
securities traded at TSE, is done on a net basis
within T+3, in full accordance with “Delivery
versus Payment – DVP” principle. Clearing and
settlement for transactions executed at TSE is
done in cooperation with second tier
commercial banks and Albanian Share
Registrar for joint-stock company shares.
Membership
TSE records 4 licensed members, two
commercial banks and two private companies,
which offer brokerage services for investors.
FUTURE OUTLOOK
Activating the securities market as a common
trading platform for several financial
instruments, will be the strategic objective of
the TSE. Achievement of such an important
goal shall be carried out through:
• Working closely with and assisting in the
continuance of domestic top level businesses,
TSE members, etc. to make them aware of
advantages the securities market may offer
protections of investors and ensure a full
transparency of companies that will be listing in
Exchange, protection of minor stakeholders
interests and ensure the equal treatment for all
shareholders, application of International
Standard of Accounting for all companies that
be listing in Exchange and prevention of illegal
practice in trading securities on Exchange.
The capital market needs for particularly
attention from business. Till offer and demand
for the market product will be in continuously in
development, than time is coming that activity
of this market will grow and will be useful for
participant of this market.
them as well as providing these stockholders
with necessary information, in order to be listed
at TSE,
• Bilateral negotiations with Albanian
Government towards the inclusion of TSE in the
privatization process of the state-owned
enterprises (SOEs). These negotiations will
cover identification of potential strategic and
non-strategic state owned companies, which
can be privatized through IPO,
• Negotiation and cooperation with both, MoF
and AFSA towards the compilation of legal and
fiscal incentives, which are deemed necessary
to encourage private companies to raise their
capital through IPO’s and TSE listing,
• Performance of a marketing campaign, in full
compliance with the marketing program
compiled by TSE with a final objective to attract
domestic business at exchange listing;
• In cooperation with AFSA, carrying out of a
continued public education & information
Campaign regarding the securities market and
advantages that provides its use;
• Improvement of information technology at
TSE in order to make it possible to provide the
market with an appropriate Electronic Trading
System for securities;
• Keeping fruitful cooperation with institutions in
the region, regarding the exchange of
experiences and staff training, targeting further
improvement of human resources capacity
within the filed of securities market