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Albanian Securities Exchange activity during 2019


General Outlook

The year 2019 marked the second year of ALSE’s operation. Even during this year, there were traded only Government Securities in ALSE. The trading volume remained at a comparable level with 2018. Despite this fact, during 2019, it was seen an increase of interest regarding the membership in ALSE, where two new members joined on board (a bank and a brokerage firm), bringing the number to a total of four members.

Within the general framework, during 2019, the total trading value was 2.46 billion ALL, or around 20.2 million EUR, with a total volume of 52,350 traded units executed on 101 transactions. In a general analysis of the trading characteristics during this year, it was observed that have dominated:

  • Transactions for clients (76.7% of the total traded value);
  • Transactions executed On – Exchange (59.8% of the total traded value);
  • Transactions in Treasury Bonds (86.7% of the total traded value);
  • Transactions denominated in ALL.

As far as the framework of the security’s type concerns, most trades were made on Treasury Bonds with a maturity of 5 and 10 years, followed by those of 3 years maturity. Meanwhile, most trades with Treasury Bills were made with those of maturity 12 months, followed by 6 months maturity.

The absence of a functional Central Securities Depository (CSD) in the domestic financial market architecture has made impossible the trade of corporate securities (shares and corporate bonds). However, during 2019 an intensive work is done by the Albanian Financial Supervisory Authority (AFSA) in collaboration with Bank of Albania (BOA) to prepare the whole regulatory framework necessary to license the Albanian Securities Registry (ALREG). A functional CSD will complete the missing infrastructure, which makes possible the trade of domestic corporate securities in the stock exchange.

ALREG is licensed by AFSA as a registrar of securities since January 2019, as well as by BOA as securities settlement system (SSS) since December 2019.  Currently, ALREG is ready to offer back – office services (clearing and settlement) for transactions with corporate securities executed at Albanian Securities Exchange (ALSE).