FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT JUNE 2013
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
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.
TSE was structured as a joint stock company
and a state - owned one,, on March 2002, and
shareholder was State, represented by 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 Supervisory Authority, licensed 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 Shares” with no
time restriction.
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.
mechanisms to ensure efficient and 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
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.
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.
The eligible tradable instruments are: shares,
government 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 5 licensed members, three
commercial banks and two private companies,
which offer brokerage services for investors.
European countries and have like purpose
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.
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,
• 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 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 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,
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