FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2008TIRANA STOCK EXCHANGEThe year 2006 was characterized bydevelopments which improved theprocedural and legal infrastructure for thedevelopment of the TSE.Anila FurerajGeneral ManagerThe year 2006 was characterized bydevelopments which improved the proceduraland legal infrastructure for the development ofthe Tirana Stock Exchange (TSE). The politicalchanges, taking place in our country, haveopened new opportunities for the improvementof the economical climate, encouragement ofthe local and the foreign investment and thewar against informality; these factors will worktowards bringing about encouragement ofdevelopment in the capital markets in Albania.During this year the management andadministrative arms of the TSE werereorganized. In this aspect, at the beginning ofthis year, new members of TSE SupervisoryBoard were appointed by Minister of Finance,as the only shareholder of the company. TheSupervisory Board has also appointed a newGeneral Manager. The reorganization wasfollowed by the changing of the organizationscheme of the functioning of the Exchangeand the adaptation personnel numbers to bein line with its actual development conditions.All these changes were done for a bettermanagement of the work and to create betterconditions to transforming TSE in a realsecurities marketThe purpose of our work has been thebroadening of the ways for the development ofthe TSE and the taking of the further securesteps so as to transform the TSE into an activeExchange. For this reason, the TSE started thework of reviewing the strategy of thedevelopment of the TSE in accordance withthe actual conditions of market developmentsand in the setting of the 2005-2009Government Program. These strategies aim isto transform the TSE into a real securitiesmarket. At the same time, statistical analyseswere done in connection with the volume oftransactions made in the informal market ofstocks from anonymous companies. Throughthis analysis it was shown that the possibilityof channeling these transactions from theinformal market towards the organized marketof valuable papers, as necessary step, for thereduction of informality in the economy andthe activation of the TSE, was essential.We have also undertaken many other differentprojects with the various groups of interestaiming not only at their susceptibility but alsooffering our legal and technical assistance.During 2006 the complete internal regulatorybase of the functioning of the TSE has beenimproved, leaning on the guidelines given bythe <strong>FEAS</strong> according to the Book of Rules andrecommendations given by the consultinggroup, GMA Company.FUTURE OUTLOOKActivating the securities market as a commontrading platform for several financialinstruments, will be the strategic objective ofthe TSE during 2008. Achievement of such animportant goal shall be carried out throughpractical implementation of the strategicalternatives pointed out within the TSEDevelopment Strategy. The activity of the TSEduring 2008 will be mainly focused in:• The approval of the TSE DevelopmentStrategy in the Government’s Economic PolicyCommittee as well as the implementation of theAction Plan as an integral part of this strategy;• Working closely with and assisting in thecontinuance of domestic top level businesses,the TSE members, etc. to make them aware ofadvantages the securities market may offerCONTACT INFORMATIONthem as well as providing these stockholderswith necessary information, in order to be listedat the TSE,• Bilateral negotiations with AlbanianGovernment towards the inclusion of the TSE inthe privatization process of the state-ownedenterprises (SOEs). These negotiations willcover identification of potential strategic andnon-strategic state owned companies, whichcan be privatized through IPO,• Negotiations both with the AlbanianGovernment and the Ministry of Financetowards the assignment of the TSE, by MoF, asGovernment’s agent in organizing primaryauction for long-term public debt securities,• Negotiation and cooperation with both, MoFand Albanian Financial Supervisory Authoritytowards the compilation of legal and fiscalincentives, which are deemed necessary toencourage private companies to raise theircapital through IPOs and TSE listing,• Performance of a marketing campaign, in fullcompliance with the marketing programcompiled by the TSE with a final objective toattract domestic business at exchange listing;• In cooperation with AFS, carrying out of acontinued public education & informationcampaign regarding the securities market andadvantages that provides its use;• Improvement of information technology at theTSE in order to make possible providing of thismarket with an appropriate Electronic TradingSystem for securities;• Keeping fruitful cooperation with institutions inthe region, regarding the exchange ofexperiences and staff training, targeting furtherimprovement of human resources capacitywithin the filed of securities market.Contact Name Ms. Anila FurerajE-mail afureraj@tse.com.alWebsite www.tse.com.alPAGE 82
FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2008TIRANA STOCK EXCHANGEOFFICIAL 6 MONTH STATISTICSUS$ millions# Shares millionsTotal Volume Average Daily Volume Total Volume Average Daily VolumeStocksJan-06 n/a n/a n/a n/aFeb-06 n/a n/a n/a n/aMar-06 n/a n/a n/a n/aApr-06 n/a n/a n/a n/aMay-06 n/a n/a n/a n/aJun-06 n/a n/a n/a n/aTOTAL n/a n/a n/a n/aBondsJan-06 n/a n/a n/a n/aFeb-06 n/a n/a n/a n/aMar-06 n/a n/a n/a n/aApr-06 n/a n/a n/a n/aMay-06 n/a n/a n/a n/aJun-06 n/a n/a n/a n/aTOTAL n/a n/a n/a n/aOtherJan-06 n/a n/a n/a n/aFeb-06 n/a n/a n/a n/aMar-06 n/a n/a n/a n/aApr-06 n/a n/a n/a n/aMay-06 n/a n/a n/a n/aJun-06 n/a n/a n/a n/aTOTAL n/a n/a n/a n/aJan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08Market Capitalization (US$ millions) n/a n/a n/a n/a n/a n/aIndex n/a n/a n/a n/a n/a n/a* The TSE is trading debt instruments only at this time, but there is no volume to-datePRACTICES & PROCEDURESTradingDaysTuesday-ThursdayHours 10:00-12:00Market segmentation T-bills, Bonds, SharesSystemWANMechanismsSecondary marketMarket-maker/Specialists NoInstrumentsT-bills, Bonds, SharesCurrencyLocalReal time information Best bid/askClearing & SettlementCentral Depository YesPeriodT+3 for all securitiesRegisteredYesSettlementBook entryClearingNettingDVPYes, full DVPClearing Institution NoRisk SharingYesMargin/LendingNoCustodiansNoTaxesCash Dividends Residents 10%, Non-Residents 15%Interest Income Residents 10%, Non-Residents 15%Capital GainsN/aStructure & RegulationsLegalRegulationSecurities marketregulationsTrading rulesSurveillanceCorporate actionsTrading halts regulationsInvestor protectionForeign ParticipationForeign investorsInvestment limitationsRepatriationJoint Stock CompanySemi SROExchange w/ regulatory institutionsExchangeNoCentralizedYesNoAllowed, No restrictionsNo limitationsNo restrictionsPAGE 83
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