JUNE 2013 - FEAS
JUNE 2013 - FEAS
JUNE 2013 - FEAS
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FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT <strong>JUNE</strong> <strong>2013</strong><br />
TIRANA STOCK EXCHANGE<br />
Anila Fureraj<br />
General Manager<br />
The development of transparent capital<br />
market, based on international standards<br />
and activation of capital market as a<br />
trading platform for different financial<br />
instruments, is the main objective of TSE.<br />
Tirana Stock Exchange is the only securities<br />
market in Albania. The development of<br />
transparent capital market, based on<br />
international standards and activation of capital<br />
market as a trading platform for different<br />
financial instruments, is the main objective of<br />
TSE.<br />
The presence of an active domestic capital<br />
market and efficient, would give companies the<br />
option to increase capital by understanding that<br />
brings real benefits for the capital market. An<br />
active and efficient capital market will expand<br />
the capital market in Albania by providing<br />
various investment opportunities and<br />
mechanisms to ensure efficient and transparent<br />
pricing will increase access to finance for<br />
Albanian companies.<br />
As requirement of new law “On Securities”<br />
were draw the Rules of Tirana Stock Exchange<br />
that was approved by Financial Supervisory<br />
Authority Board. In these rules are include in a<br />
systematic manner rules of membership, listing,<br />
trading, clearing and settlement of transaction<br />
on securities that will be trading in Tirana Stock<br />
Exchange.<br />
Rules of Tirana Stock Exchange were prepared<br />
and adapted with contemporary general<br />
principals for functioning of capital market of<br />
European countries and have like purpose<br />
protections of investors and ensure a full<br />
transparency of companies that will be listing<br />
in Exchange, protection of minor stakeholders<br />
interests and ensure the equal treatment for<br />
all shareholders, application of International<br />
Standard of Accounting for all companies that<br />
be listing in Exchange and prevention of illegal<br />
practice in trading securities on Exchange.<br />
The capital market needs for particularly<br />
attention from business. Till offer and demand<br />
for the market product will be in continuously in<br />
development, than time is coming that activity<br />
of this market will grow and will be useful for<br />
participant of this market.<br />
HISTORY AND DEVELOPMENT<br />
TSE is the first and the only stock exchange<br />
in Albania, established in 1996 originally as<br />
a department of Bank of Albania (BoA). The<br />
activity at hand, at that time, was the trading<br />
of the T-Bills with 12 months-to-maturity, five<br />
series of government bonds and privatization<br />
vouchers. It also held out the primary auctions<br />
for Treasury Bills until August 1st, 1998, than<br />
this market moved to Monetary Operations<br />
Department, at BoA.<br />
TSE was structured as a joint stock company<br />
and a state - owned one,, on March 2002, and<br />
shareholder was State, represented by Minister<br />
of Finance (100% of the shares). It’s authorized<br />
and subscribed Capital is equal to 20,000,000<br />
lek (~EUR163,000) with a no. of shares of<br />
20,000. On 07.13.2007, after several periodical<br />
- limited licenses since 2002, the Albanian<br />
Financial Supervisory Authority, licensed Tirana<br />
Stock Exchange with an infinite validity license.<br />
The license empowers TSE “To operate as a<br />
securities market for the trading of Government/<br />
Corporate Debt Securities and Shares” with no<br />
time restriction.<br />
Market Structure -Trading<br />
TSE is an order-driven “open outcry - call<br />
market” which uses a manual trading<br />
system with physical presence of licensed<br />
commissioners (members) on the trading floor.<br />
Securities’ prices on the trading sessions are<br />
set according to “single price method”, while<br />
trading is held:<br />
- every Monday and Wednesday, from 10.00 -<br />
12.00, for the official market.<br />
- every Friday for trading in the parallel market.<br />
The eligible tradable instruments are: shares,<br />
government and corporate bonds. In order to<br />
trade, TSE commissioners should be physically<br />
presented in the trading sessions. Each trading<br />
session is conducted in two rounds. Organized<br />
as an auction market, TSE calculates a single<br />
price for each tradable instrument, at the end of<br />
each trading day.<br />
Clearing and settlement for every type of<br />
securities traded at TSE, is done on a net basis<br />
within T+3, in full accordance with “Delivery<br />
versus Payment - DVP” principle. Clearing<br />
and settlement for transactions executed at<br />
TSE is done in cooperation with second tier<br />
commercial banks and Albanian Share Registrar<br />
for joint-stock company shares.<br />
Membership<br />
TSE records 5 licensed members, three<br />
commercial banks and two private companies,<br />
which offer brokerage services for investors.<br />
FUTURE OUTLOOK<br />
Activating the securities market as a<br />
common trading platform for several financial<br />
instruments, will be the strategic objective of the<br />
TSE. Achievement of such an important goal<br />
shall be carried out through:<br />
• Working closely with and assisting in<br />
the continuance of domestic top level<br />
businesses, TSE members, etc. to make<br />
them aware of advantages the securities<br />
market may offer them as well as providing<br />
these stockholders with necessary<br />
information, in order to be listed at TSE,<br />
• Bilateral negotiations with Albanian<br />
Government towards the inclusion of TSE in<br />
the privatization process of the state-owned<br />
enterprises (SOEs). These negotiations will<br />
cover identification of potential strategic and<br />
non-strategic state owned companies, which<br />
can be privatized through IPO,<br />
• Negotiations with the Albanian Government<br />
and the Ministry of Finance towards the<br />
assignment of TSE, by Ministry of Finance<br />
(MoF), as Government’s agent in organizing<br />
primary auction for long-term public debt<br />
securities,<br />
• Negotiation and cooperation with MoF<br />
and AFSA towards the compilation of legal<br />
and fiscal incentives, which are deemed<br />
necessary to encourage private companies<br />
to raise their capital through IPOs and TSE<br />
listing,<br />
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