ANNUAL REPORT JUNE 2010
FEDERATION OF EURO-ASIAN STOCK EXCHANGES
TIRANA STOCK EXCHANGE
The development of a reliable and
transparent securities market according to
international standards will be one of the
main tasks of the Tirana Stock Exchange.
Anila Fureraj
General Manager
The development of a transparent capital
market according to international standards,
and activation of the capital market as a
trading platform for various financial
instruments, remains the main objective of the
TSE.
During 2009, for the first time in Albania was
promoted The Albanian Manual of Corporate
Governance. The manual was part of the
Program on Corporate Governance in Eastern
Europe implemented by IFC, and funded by
SECO, in collaboration with Tirana Stock
Exchange. The manual sets the stage
reference in the field of corporate governance
in Albania, being a referent guide for
businesses in Albania, for their good corporate
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:
- every Monday and Wednesday, from 10.00 -
12.00,for the official market.
- every Friday for trading in the parallel market.
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governance. Good governance will mean
recognition, observance and enforcement of
laws and a culture of high society, governance
and management. The manual will help joint
stock companies paying particular attention to
capital market in Albania, which may offer the
latter with new ways of investment.
Activation of the capital market will make
businesses understand the benefits that brings
this market, will bring increased access to
funding, increased performance and
transparency of companies, will help their
shareholders in their decision making with
respect to ownership actions and how they
may be using the capital market and trading in
securities. Although stock companies are few
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
Up to now, TSE records 4 licensed members, two
commercial banks and two private companies,
which offer brokerage services for investors.
in number in our country, compared with other
countries in the region, they constitute the
dynamic part of Albanian businesses. As such,
it is time to request stock companies to follow
the principles for good governance of their
own, given the separation of ownership from
management of the company, the quality of the
Board of Directors, the responsibility on
stakeholders, and other important related
issues. Good corporate governance reinforces
the safety, integrity and efficiency of the
market, thus making possible the growth and
financial stability of the country, and making
Albania a country always more attractive to
investors.
• 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,
• Negotiations both with the Albanian Government
and the Ministry of Finance towards the
assignment of TSE, by Ministry of Finance (MoF),
as Government’s agent in organizing primary
auction for long-term public debt securities,
• 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 IPOs 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;
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 them as well as
providing these stockholders with necessary
information, in order to be listed at TSE,
• 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.