The Financial Supervisory Authority (FSA) licensed on 3 July, 2017 the Albanian Stock Exchange (ALSE) sh.a. as the first Albanian stock exchange with private capital licensed in the country. The FSA Board’s decision came after evaluation in accordance with the requirements of the legislation of all documentation related to the object of activity, capital, and the governing bodies of the company, the infrastructure and the technological systems necessary for the realization of its activity.
ALSE is a joint stock company with three founding shareholders: American Bank of Investments sh.a., with 42.5%, Credins Bank sh.a., with 42.5%, and AK Invest sh.a., with 15% of the capital. The registered capital of this company is ALL 50,000,000.
The Albanian Stock Exchange will have as its main activity:
· trading of securities and other financial instruments
· realization of a multilateral trading platform
· education, promotion and provision of information to interested groups regarding the activities of the capital market, the activity of securities issuers listed on the stock exchange, and the activity of the stock exchange members, etc.
ALSE will use the electronic system Quick Trade, used by the Ljubljana Stock Exchange in Slovenia, as well as by the Skopje, Sarajevo, Banja Luka, and Podgorica Stock Exchanges. This system can carry out up to 100,000 transactions per day.
In the first year of its operations, Stock Exchange transactions will focus on the trading of government securities, as well as the trading of shares of privatized companies.
The creation of a stock exchange for the Albanian market is a sign of progress for the country’s economy, a meeting point for entities to seek and find capital and increase their business, as well as for central and local governments to find financing for development projects.
Looking at the macro-economic perspective for Albania, the creation of a stock exchange is a concrete and clear indication of the maturity of the Albanian financial market.
The creation of a stock exchange in Albania:
· creates the possibility for companies and government to find long-term financing for projects that banks may not be able to finance
enables profitable companies to grow by selling their shares to a large number of shareholders and diversifying them
enables investors to invest with confidence, and increases transparency in a well-regulated market.
It will enable small investors to be involved in a transparent securities market, reducing trading on online, in some cases unprofessional, platforms, which also have a higher level of public investment risk.
The stock exchange provides in the coming years a good opportunity to attract companies from other Albanian speaking areas, e.g. in Kosovo, which also serves as a platform for Albanian investors.
The creation of this stock exchange will make it possible to link it with projects initiated in other countries in the region. Currently, the European Bank for Reconstruction and Development, EBRD, has initiated a regional project involving the stock exchanges of Slovenia, Bulgaria, Macedonia, Croatia and Serbia, aiming to create an infrastructure for trading of securities in these countries, and to increase cooperation between them in this area. Also, EBRD has invested in these stock exchanges through purchasing some of the shares. Integration into similar regional platforms will provide a better chance for Albania to find alternative sources of funding.
For more information please refer to the official page of the Financial Supervisory Authority