bvmf presentation - february 2013

7/29/2019 BVMF Presentation - February 2013

1/47

February2013February2013


2/47

ForwardLookingStatements

Thispresentationmaycontaincertainstatementsthatexpressthemanagementsexpectations,beliefsandassumptions

aboutfutureeventsorresults.Suchstatementsarenothistoricalfact,beingbasedoncurrentlyavailablecompetitive,

financialandeconomicdata,andoncurrentprojectionsabouttheindustriesBM&FBovespaworksin.

Theverbsanticipate,believe,estimate,expect,forecast,plan,predict,project,targetandothersimilar

verbsareintendedtoidentifytheseforwardlookingstatements,whichinvolverisksanduncertaintiesthatcouldcause

actualresults

to

differ

materially

from

those

projected

in

this

presentation

and

do

not

guarantee

any

future

BM&FBovespa

.

Thefactorsthatmightaffectperformanceinclude,butarenotlimitedto:(i)marketacceptanceofBM&FBOVESPAservices;

(ii)volatilityrelatedto(a)theBrazilianeconomyandsecuritiesmarketsand(b)thehighlycompetitiveindustries

BM&FBoves ao eratesin iii chan esin a domesticandforei nle islationandtaxationand b overnment olicies

related

to

the

financial

and

securities

markets;

(iv)

increasing

competition

from

new

entrants

to

the

Brazilian

markets;

(v)

abilitytokeepupwithrapidchangesintechnologicalenvironment,includingtheimplementationofenhanced

functionalitydemandedbyBM&FBovespacustomers;(vi)abilitytomaintainanongoingprocessforintroducing

competitivenewproductsandservices,whilemaintainingthecompetitivenessofexistingones;(vii)abilitytoattractnew

customersindomesticandforeignjurisdictions;(viii)abilitytoexpandtheofferofBM&FBovespaproductsinforeign

jurisdictions.

Allforwardlookingstatementsinthispresentationarebasedoninformationanddataavailableasofthedatetheywere

made,and

BM&FBovespa

undertakes

no

obligation

to

update

them

in

light

of

new

information

or

future

development.

,

anysaleofsecuritieswheresuchofferorsalewouldbeunlawfulpriortoregistrationorqualificationunderthesecurities

law.NoofferingshallbemadeexceptbymeansofaprospectusmeetingtherequirementsoftheBrazilianSecurities

CommissionCVMInstruction400of2003,asamended.

2


3/47

BVMFSTOCKPRICE

Recent Per ormance

3


4/47

BVMF3 Recentperformance

BVMF3YTD:0.4%

IOFs

BM&FBOVESPA IBOVESPA

.10/17

R$14.97

Goodwill11 30 Com etition

R$13.01 News01/05

R$13.10 ReductionsofVolumes

EstimatesbytheMarket Removalof

ChangeofIOF

onforeignexchange

Rumors

aboutIOF

IOF

on

Equities12/01

R$10,54

ransac ons

06/14

ExchangesMergers

02/08

R$11.18

BATs

02/15

R$11.43

NewIOF

on

'07/26

R$9.55

11/21

R$10.11

0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 3

Release06/18

Updateduntil01/31/2013.4

Aug

1

Sep

1

Oct1

Nov

1

Dec

1

Jan

1

Feb

1

M

ar1

Apr1

M

ay

1

Jun

1

Jul1

Aug

1

Sep

1

Oct1

Nov

1

Dec

1

Jan

1

Feb

1

M

ar1

Apr1

M

ay

1

Jun

1

Jul1

Aug

1

Sep

1

Oct1

Nov

1

Dec

1

Jan

1


5/47

BRAZILIANMARKETOPPORTUNITIES

5


6/47

EquityMarket(BOVESPASegment)LowpenetrationintheBrazilianmarket

Numberofcustodyaccounts(thousands) Pensionfundsportfolio

LowpenetrationofequityR$574billion

Jan'13

investorsportfolios

Stableandlowinterestrateenvironmentencourage

Equity

FixedIncomeandOthers

69.9%

.

moreexposure nequ t es

Recentgrowthinthenumberofretailinvestors,butstilllowcomparedtoother

R$168billion

30.1%

27.7%

72.3%

Jan'05

128.6

5 5 6 6 7 7 8 8 9 9 0 0 1 1 2 2 3

markets

ListedCompanies

2002 2011

Jan

Jul

Jan

Jul

Jan

Jul

Jan

Jul

Jan

Jul

Jan

Jul

Jan

Jul

Jan

Jul

Jan

Lownumberoflistedcompaniescomparedtoothercountries

Lack

ofimportant

economic

sectors

in

the

6,856

, , ,retail,ITandpharmaceutical,

Investmentcyclemaybringnewcompaniesandsectorstotheexchange

,

4,041 3,9723,481 3,200

2,7672,056 1,784

364

Source:ABRAPP,WFEandBM&FBOVESPA6

Currently,SMEsarenotabletoraisemoney

throughequity

easilyIndia USA China/HK Canada Japan Spain UK Australia Korea Brazil


7/47

DerivativesMarket(BM&FSegment)Growthincreditlevelwillfavorvolumes

CredittoGDP TradeFlow(totalImports+ExportsinUSDbillions)

53.5%Mortgage482

27.4%

TotalCredit

229 281371

281384

4.5%6.3%

InterestRateinBRLcontracts:growthincreditlevels,speciallyinfixedrates,supportincreasetheactivityof

Jan

01

Jul

01

Jan

02

Jul

02

Jan

03

Jul

03

Jan

04

Jul

04

Jan

05

Jul

05

Jan

06

Jul

06

Jan

07

Jul

07

Jan

08

Jul

08

Jan

09

Jul

09

Jan

10

Jul

10

Jan

11

Jul

11

Jan

12

Jul

12

2006 2007 2008 2009 2010 2011 2012

FXcontracts:growthintheamountofforeigntradingandchangeinthecultureofhedgingfromentrepreneurscan

pushup

volumes

in

this

group

of

contracts,

mainly

in

currencies

other

than

US$

Indexbasedcontracts:growthincashequitymarket,thelaunchinganddevelopmentofETFsandthegrowthofexposuretoequitybyinstitutionalinvestorscandrivethegrowthofthesecontracts

7

Commoditiescontracts:

cash

settled

contracts

and

the

change

in

the

behavior

of

farmers

that

are

becoming

more

sophisticated


8/47

MAININITIATIVES

8


9/47

ConsistentGrowthHistoricrecordofvolumeskeepinglongtermgrowthtrend

ADTV

(inR$millions)

ETFs Exchange

Traded Funds Tesouro

Direto

AverageNumberofInvestors RetailInvestors

(inthousands)

18.6 28.548.7

115.997.6

155.8

102.3107.5 91.5

23.8 27.536.3 42.3

64.4

82.7 78.9 83.0 86.085.7

2009 2010 2011 2012 1Q12 2Q12 3Q12 4Q12 Jan/13

AverageAssetsunderManagement* AverageAssetsunderCustody

(inR millions)

1,974

1,3221,696

2,336 2,541 2,422

6.1

8.67.9 8.8

9.3 9.3

271 579

,

2009 2010 2011 2012 1Q12 2Q12 3Q12 4Q12 Jan/13

*ExcludedPIBB11. 9

1.3 1.82.9

3.9


10/47

HighGrowthProducts

RealEstateFunds(FII)andAgribusinessCreditBills(LCA)

A ribusiness Credit Bills LCAsReal Estate Funds FIIs

FIXEDINCOME

AND

REAL

ESTATE

PRODUCTS

36.550.35060

0.125.320

30

40

Assetsundercustody(R$billion)

0

2007

2008

2009

2010

2011

2012

jan

12

fev

12

mar

12

abr

12

ma

i12

jun

12

jul12

ag

o

12

set

12

ou

t12

nov

12

dez

12

ADTV(R$MM) MktCap(R$BN)

62%38%

97.1

19.7

10

Mkt.ShareBVMF Other#ofinvestors


11/47

HighGrowthProductsIncreasedsophisticationofmarketparticipants

HIGHGROWTH

PRODUCTS

280.1

Optionsonstocks/indices(ADTV R$MM) Stockindexfutures(ADV thd contracts) SecuritiesLending(OpenInterest)

(R$ billion)

CAGR:+44.0% CAGR:

+35.9%

219.3 198.9

57.0 81.2

.

Other

PETR+VALE

.

269 256528

805

12.7 20.530.2 31.99.3%

2011 2012 2009 2010 2011 20122009 2010 2011 2012

CAGR:+45.7%CAGR:+84.0%

18.6 28.548.7

115.9

2.9 3.96.1

9.0

11

2009 2010 2011 2012 2009 2010 2011 2012


12/47

StrategicProjects

Multiasset

trading

platform

(PUMA

Trading

System)

Stateoftheartintradingtechnologyandtechnologicalindependency

Derivativesmodulesuccessfullyimplementedin2H11

LicensingTRADExpress RealTimeClearingsystem

Equitiesmarkettobeconcludedin1Q13

Objective:integratingandmodernizingourexistingclearingfacilitiesshouldproceedover2013.

Integrated tests with the market and implementation of the systems scheduled to take place in 2013/2014

Partnership advantages:

cense o use e so ware

Access to the source code

Selling rights over our new clearing platform

RegistrationsystemsforOTCderivatives

Objective: modernize,improveandexpandtherangeofourregistrationservicesforOTC

derivatives,while

offering

our

customers

a

streamlined,

quality

solution

and

thorough

Oneofthemostflexibleandcompleteenginesforregistration,pricediscovery,riskassessment,captureandlifecycleprocessingofthesetransactions

Threemoduleimplementation:thefirstoneisscheduleto2H12,thesecondonefor1H13andthirdmoduleoftheplatformwillbeannouncedinduecourse

12


13/47

ClearingHouses IntegrationBuilding astate of the art platform

EquityandCorporate

*Derivatives FX Securities

Equity,ETFsand fixed

income cash market

Financialand

n

FXspotmarket

n

Cash market and forward

derivatives (optionsandforward)

Securities lending

commo es er va ves(futures,optionsandforward)

OTCderivatives

(US$vs.R$)mar e orgovernmenbonds

=

Capitalefficiency

*AggregateofpledgedcollateralsatourclearinghousestotaledR$181.3billioninSep.30,2012.**IPN/COREimplementationrequirestheauthorizationoftheregulators.13


14/47

MainProjectsDeliveriesalreadyimplementedandprogrammed

INTENSEDELIVERY

PHASE

STARTING

IN

4Q12

4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 (...)

Migration ofPUMA

Tradingys em

(equities)

Fixed incometrading

platform

Fixed incomeregistration

platform

OTC DerivativesPlatform (Calypso)

Cross

New integrated clearing house/ CORE*

Construction of the New Data Center

listing

Fee structure redesigning and introduction of incentive programs(...) (...)

*IPN/COREimplementationrequirestheauthorizationoftheregulators.

Development of new products / markets: ETFs, market making programs for the options market; dual listings... ...

14


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BUSINESSMODELANDREGULATORY

FRAMEWORK

15


16/47

PossibleCompetitionImportantconsiderations

EASINGREGULATION

IS

NOT

EXPECTED

Mainrequirements:pretradecontrols,selfregulatory(SRO),offexchangetradesarenotpermitted(internalizationofordersandOTC),CCPforstockstrading,posttradingatthebeneficialownerlevel

Competitioninotherexchangeswasintensifiedaftereasingregulation

THEEXCHANGE

FEES

(TRADING

AND

POST

TRADING)

ARE

PAID

BY

THE

FINAL

INVESTOR

DifferentlyfromUSAandEurope,thefinalinvestorsistheonewhopaystheexchangefees

Brokerscouldntincreasetheirshareintheallintradingcostpieincaseofreductionontheexchangefees

STOCKSTRADINGALLINCOSTINBVMFISCOMPETITIVE

Comparingonlythetradingfeesamongexchangesismisleading.BVMFprovideshigherportionofservicesthanthepeers

,

ITINFRASTRUCTUREMOVINGTOSTATEOFTHEART

IncreasingparticipationofHFTviaColocation(movingtosubmillisecondlatency)

RECENT BM&FBOVESPA INITIATIVES REBALANCING OF FEES STRUCTURE

Shiftbetweentradingandposttradingfees

16


17/47

PanelsponsoredbyCVMMainpoints

OnJune

29,

CVM

sponsored

adiscussion

with

stakeholders

Regulator:thestudyshowsthatcompetitioninexchangeindustryisnoturgent

Participantsview

9Regulator:marketintegrityandtransparencyarepriorities

9Brokers: mostofthemhavedoubtsaboutthebenefitsandshowedconcernsrelatedtocostrisingforthemandrisksforthemarket

9 Investors: ingeneralhaveaperceptionthatpricesareinlinewithinternationalbenchmarksandareconcernedwithmarketintegrity

9Infrastructure

providers

(exchanges):

non

consensus

regarding

the

necessity

of

opening

the

clearing

houseornotinordertocreatetheconditionsforcompetition

BVMFsmainconsiderations:

9UnderstatesregulatoryandIT/infrastructurecostforbrokers

9Disregardsimplicit

costs

of

liquidity

fragmentation

and

does

not

assess

qualitatively

the

price

formationimpacts

9ComparesinadequatelytheothermarketcostswhenitdoesnotusetheAllincost

9Marketsizeisnotbigenoughtoembracenewexchanges

9Recognizestheimportanceofclearinghousesintegration

17


18/47

EquityMarketSettlementStructureBrazilComparedtoUSA

BRAZIL(Allthetrades mustbematchedonan

exchangeenvironment)

USA(Brokerscaninternalizeorders)

BVMFTrading

TradingVenues

DTCCBVMF

Brokers

AandB

Brokers

AandB

Broker

ABroker

B

Clearing(CCP)Settlement

Central

Depository

Investors InvestorsInvestors Investors

100%verticallyintegrated:clearing,settlement andcentraldepositoryatthebeneficialownerlevel

Brokerscontroltheirclientsportfoliosandsettle

DTCCdoestheclearing,settlement andcentraldepositoryofsecuritiesatthebrokerslevel

Eachbroker(primebroker)hasitsownstructuretopositionsthroughBVMFsinfrastructure (this

impactstheposttradefeeschargedbyBVMF)controltheirclientsportfoliosandsettlepositions

(thisimpact theprimebrokerscosts)

18


19/47

BusinessModel

ListedExchange

Business

Model

DiversifiedandIntegrated IntegratedDerivatives DiversifiedbutNotIntegrated*

Updateduntil:01/31/2013

MarketCapitalization(US$billions)andEBITDAMargin(%)

*Donotprovideposttradingservicesfortheequitymarket

Source:Bloomberg

77.9%

65.5% 61.6% 58.6%69.7%

42.3%

62.2%

76.9%

49.1% 47.6%

59.4%

72.0%

21.8 19.313.9 12.8 10.1 8.4 6.7 6.4 5.2 4.7 2.9

2.3

HKEx CME BVMF Deutsche ICE Nyse SGX ASX* LSE Nasdaq TMX BME

19*12mths to30June2012.

Boerse Euronext

EBITDAMarginDiversified an d

integrated Derivatives

Diversified bu t

not

integrated


20/47

BrazilianMarketRegulatoryFrameworkLegalrequirements:resilience,transparence,clearrules.

Brokers&

investors Regulationprohibits internalizationoforders,darkpoolsandATS/MTFs,stockstradinginbothexchangeandOTCsimultaneously

Settlement

and

clearing

of

stocks

trading

must

be

done

SettlementandclearingatthebeneficialownerlevelmaketheBrazilianmarketsaferandmoreresilient

Trading Underthe

regulation

in

place,

potential

competitors

wouldbeobligedtoprovidethesameintegrated

solution with the same rules and trans arenc

Pos

Trading

Thefinalinvestorpaystheexchangefee

Otherexchan es

have

been

seekin

inte rated

models

(selfclearingmodels)

Nakedaccessisnotallowed

Nakedshortsellingisnotpossible

20


21/47

EndofCPMF

Braziliansstocktradingbreakdown

(Financial

TransactionTax)

SarbanesOxleyAct

(Jul.2002)

NovoMercado

Launching

(Dec.2000)

EndofIOFTax(2%)for

foreigninvestors

(Dec.2011)

25.4%

an

33.2%

36.0%

.

30.8%

66.8%

6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 3

Source:Bloomberg(inUSDtradedvalueof35companieswithADRsprograms)

199

199

199

199

200

200

200

200

200

200

200

200

200

200

201

201

Apr

1

May

1

Jun

1

Jul1

Aug

1

Sep

1

Oc

t1

Nov

1

Dec

1

Jan

1

Fe

b

1

Mar

1

Apr

1

May

1

Jun

1

Jul1

Aug

1

Sep

1

Oc

t1

Nov

1

Dec

1

Jan

1

OtherUSA Venues BrazilianADRs NYSE BrazilianADRsBM&FBOVESPA companieswithADRs BM&FBOVESPA(exceptcompanieswithADRs)

u u

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Total

IPOs 1 7 9 26 64 4 6 11 11 3 1 143Followons 14 5 8 8 10 16 12 8 18 11 11 9 1 131

*Updateduntil02/08/2013. 21

DualListings

2

1

1

1

5


22/47

OPERATIONALHIGHLIGHTS

22


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BOVESPASegment:operationalhighlights

v y u

1.2 1.6 2.44.9 5.5 5.3 6.5 6.5 7.3 6.3

8.37.0 7.3 7.4

8.2

6.07.2

8.4

6.7 6.67.9 7.3

Averageannualmarketcap(R$trillion) TurnoverVelocity**(12monthsaverage)

2004 2005 2006 2007 2008 2009 2010 2011 2012 Jan12 Feb12 Mar12 Apr12 May12 Jun12 Jul12 Aug12 Sep12 Oct12 Nov12 Dec12 Jan13

56.4%

63.2%

66.6%

63.8%

64.2%

70.3% 71.0%

1.982.03

1.83

2.33 2.37 2.422.54

30.8%

29.4%

36.8% 37.6%38.7%42.3%

0.720.94

1.31

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

*Updateduntil01/31/2013.**Relationofthetradingvalueinthecashmarketandthemarketcapoftheexchange. 23

*2004 2005 2006 2007 2008 2009 2010 2011 2012 2013*


24/47

BOVESPASegment:capitalraisingactivity

PublicOfferings

(BRL

billions)

Updateduntil01/31/2013.

11.2

70.1

46.0

74.4FollowOn

IPO

4.3 8.5 15.1 14.526.8 22.2

63.2

10.8 9.3 0.74.55.4

15.4

55.6

7.5

23.8

7.2 3.9

8.8 13.9

30.4 .

18.0

13.20.7

Pipeline:alreadyannouncedtothemarket

2004 2005 2006 2007 2008 2009 2010* 2011 2012 2013

ereare o er ngs nt ep pe ne:

IPO(4):AutoBrasil Participaes;Cia.EstadualdeguasEsgotos CEDAE;Senior Solution;Alupar Investimentos

Additionaly,there are16RealEstate Funds filed inCVM:estimated value of R$4.3billion

24* Excludes the capitalization with barrels reserves by federal government BRL74.8 billion in Petrobras offering.

BOVESPA S


25/47

*

BOVESPASegmentPotentialtoincreasethenumberoflistedcompanies

177%

136%129%

174%

137%

158%

138%129%

2009 2010 2011

HongKong: 438% 481% 365%

109%100%

67%75%

87%

72%

100%

119%107%

75% 76%

96%

72%80%

44%

110% 109% 104%

89% 87%

60% 57% 55% 50% 49% 46%39%

35%

Singapore Canada Chile USA Korea Australia Japan France India Brazil UK China Mexico

Market Ca italization b Economic Sector*Source:WorldBank

15.2% 15.7%22.4%

Dec11 Dec05

14.1%

1.8%10.4%

.

21.6%11.5%

4.7%

16.2%

3.9%0.6%

6.8%

2.5%

3.6%

8.6%

0.3%

11.1%

Oil,GasandBiofuels BasicMaterials CapitalGoodsandServices ConstructionandTransportation

ConsumerNonCyclical ConsumerCyclical Information Technology Telecommunications

PublicUtilities Financial

.

25


26/47

BM&FSegment:operationalhighlights

verage a y ra e o ume ousan so con rac s

593 205 245

285308

385

2,505 2,701 2,899 2,615 2,497 2,994

3,5183,904

2,590 2,819 2,630 2,626 2,971 2,653 2,856 2 410

422 501 711988 789 843

1.684 1.797 1.926 1,636 1,4522,061

2,497 2,681

1,561 1,866 1,723 1,7102,199

1,747 1,856 1,561110 168

266473

535 447

541 496 494

541 545

524

520 485

425 451

327 476 547

474

86 7468

112 88 80

89 123 143

123 166

123

158 106

137 111 123

99 113

84

187 109 124

167 162 150

191 285 315 334 350 362

345 355 331 290

805 8521,167

1,740 1,573 1,521

Jun05 Jun05 Jun05 Jun05 Jun05 Jul05 Jul05 Jul05 Jul05 Jan12 Feb12 Mar12 Apr12 May12 Jun12 Jul12 Aug12 Sep12 Oct12 Nov12 Dec12 Jan13

BRLInt.Rate(Thousands) FX(Thousands) Index(Thousands) Others(Thousands)

2004 2005 2006 2007 2008 2009 2010 2011 2012

a eper on rac

2006 2007 2008 2009 2010 2011 2012* J12 F12 M12 A12 M12 J12 J12 A12 S12 O12 N12 D12 J13

InterestratesinBRL 0.906 0.950 1.141 0.979 0.889 0.918 1.004 1.045 1.064 0.926 0.948 0.922 1.059 1.026 1.076 1.130 0.924 1.044 1.037 1.032

. . . . . . . . . . . . . . . . . . . .

StockIndices 1.419 1.501 2.145 1.620 1.564 1.614 1.524 1.316 1.674 1.328 1.502 1.233 1.708 1.403 1.750 1.407 1.752 1.400 1.981 1.547

InterestratesinUSD 1.094 0.965 1.283 1.357 1.142 0.941 1.015 0.958 0.804 0.911 0.991 1.021 0.955 1.143 1.027 1.086 1.024 1.164 1.152 1.073

Commodities 4.749 3.195 3.587 2.307 2.168 2.029 2.239 1.688 2.033 2.183 2.228 1.945 2.099 2.014 2.270 2.840 2.680 2.485 3.360 2.449

Minicontracts 0.034 0.054 0.162 0.176 0.128 0.129 0.116 0.131 0.130 0.130 0.122 0.113 0.116 0.111 0.110 0.109 0.112 0.107 0.112 0.120

26

OTC 1.571 2.111 2.355 1.655 1.610 1.635 1.769 2.438 1.515 1.822 1.880 1.203 1.321 1.523 2.693 1.139 1.738 1.711 2.475 1.988

TotalRPC 1.247 1.224 1.527 1.365 1.134 1.106 1.191 1.236 1.227 1.079 1.100 1.074 1.272 1.222 1.277 1.314 1.098 1.242 1.303 1.266

Updateduntil01/31/2013.

Interest Rate in BRL Contracts


27/47

InterestRateinBRLContractsStructuralchangesbehindthegrowthinvolumes

BRLINT.

RATE:

ADV

PER

MATURITY

(MILLIONS

OF

CONTRACTS)

CAGR:+3%Growthininterestratecontracts

1.661.81 1.77

CAGR:+32%

0.910.93

1.35

0.72 0.76

CAGR: 21%

0.28 0.38

0.57

0.51 . 0.77.

2008 2009 2010 2011 2012

FixedRateCredit inBRLbillions PublicDebt/FixedRate inBRLbillions

1st4thMaturity 5thMaturity Total

Dec'12:

BRL850.9Dec'12:

BRL 789.3bn

Jan'05:

BRL180.0

Jan'05:

BRL 151.4bn

27Source:Brazilian CentralBank.

Jan05 Jan06 Jan07 Jan08 Jan09 Jan10 Jan11 Jan12 Jan05 Jan06 Jan07 Jan08 Jan09 Jan10 Jan11 Jan12


28/47

HighFrequencyTrading(HFT)

BM&FSegment:

HFT

(ADTV

in

thousands

of

contracts)

and

mkt.

share

6.7% 7.5% 7.3%8.7% 8.5%

6.6% 6.9% 5.8%

8.9% 9.1%

5.9% 5.8%7.5% 6.4% 7.2% 6.3% 6.7% 5.6%

162 155 14449

88 66

61 50 50 49 59

73

62

56

63 56 58 46

79191

222 233 239 274 239 300

481 474419

343

268

288

417

528

403442

365 347 358 317283

339

304

237

3.5% 4.2 3.9% 3.6%. . .

68 90 93 90 102 92 113203 219 177 142 120 131 146 128 163

225 186 202 223 201 197 227 204 1566565 71 82

118 101126 124 85 88

141 159 61 31 5544

2951 50 49

42 42 37

BovespaSegment:HFT (ADTVinBRLmillion)andmkt.share

Mini FX Equities Other %overallvolume

278

230

205

164

245 387

1,683

1,296

1,4601,339

1 145

1,367

1,160

1,3661,517 1,473

1,268

1,3321,526

1,3631,3441,517 1,489

5.7% 6.6% 5.9% 5.9%8.7% 7.6% 8.6%

11.4% 10.4% 10.3%11.5%

9.3% 8.7% 8.4% 8.4% 9.0%10.3%

8.8%10.3% 10.0% 9.1% 10.2% 10.1% 9.4% 10.1%

258 352 344 321511 495 561

1,099821

1,016 913 826 785995 854

1,070 1,2381,243

1,041 1,069 1,016785 831 884 783267

346 261 254

293 253 262

311281

259210 303

372306

296 227 263 265

212 243246

285

206

272140 210

192 152 151

165110

366 269

730

963

746 785996

899 974,

28ADTV(Foreigners) ADTV(Individuals) ADTV(Institutionals) %ofoverallmarket


29/47

FINANCIALHIGHLIGHTS

29

Highlights 3Q12 vs 3Q11


30/47

Highlights3Q12vs.3Q11Growthinallbusinesslinesandcostsundercontrol

FINANCIAL HIGHLIGHTS

9 GrossRevenue: R$581.3million,+6.2%

OPERATINGHIGHLIGHTS

9 Bovespa Segment:

ovespa eg.: . m on, .

BM&FSeg.:R$219.3million,+6.8%

Otherrevenues:R$98.7million,+5.8%

: .

Margin: flat

9 BM&FSegment:

9 NetRevenue: R$521.6million,+5.7%

9 Ad ustedEx enses: R$136.0 million, 0.2%

.

ADV: 4.0%

9 Highgrowthproducts:

ETFs:+90.2%ADTV

9 Operating Income:R$346.8million,+7.0%

Tesouro Direto:+45.6%AUM

FII:stronggrowthinmarketcapitalizationandnumberofinvestors

9 EBITDA:R$375.6million,+8.1%

EBITDAMargin: 72.0%

9 Adj.NetIncome: R$400.6million,+0.3%,

LCA:consistentincreaseofregistervolume

MAINPROJECTSFOR4Q12

9 Adj.EPS: R$0.208,+1.7%

Crosslisting:listingofS&P500minicontractsatBVMFandIbovespa atCME

9 PUMATradingSystem:equitiesmodule

9 Re istrationPlatformsayou : . m on n v en san n eres on

capital,80%ofGAAPnetincomein3Q12

1 Excludes stock options plan, depreciation, provisions and tax on dividends from CME Group. 2 Excludes deferred liability recognized in correlation with temporary differences from amortization ofgoodwill for tax purposes, the impact of the stock options plan, the investment in associate (CME Group) accounted for under the equity method of accounting, net of taxes related to dividends andrecoverable taxes paid overseas to be compensated. 30

Financial Highlights


31/47

FinancialHighlightsFocusoncashgenerationandshareholdersreturn

OPERATING CASHGENERATION CASH

AND

FINANCIAL

INVESTMENTS

(R$million) (R$million)

+6.9%

340.5

364.1 1,443

1,166

340

343

363

390

1,979

2,100

4,125

3,999

2Q12

3Q12

1,270

1,551

,

468

380

284

270

1,487

1,582

,

3,508

3,782

,

3Q11

4Q11

3Q11 3Q12Market

participants

cash

collateral

and

others* Restricted

funds

Subsidiaries** Availablefunds

9 Payout: R$221.2million,R$131.2millionindividends

RETURNINGCAPITALTOSHAREHOLDERS

9Budget

range

:

R$230

260

million

CAPEXBUDGETFOR2012

an . m on n n eres oncap a , oGAAPnetincomein3Q12.

9 Sharebuybackprogram:upto60millionsharesauthorizedforrepurchaseuntilJune28,2013

9Actual3Q12:R$52.3million

9Actual9M12:R$124.2million

*Includes collaterals pledged by participants in the form of cash, receivables and rights in securities under custody, as well as payouts still undisbursed.** Includes third party collaterals and restricted funds at BM&F Settlement Bank (Banco BM&F). 31

Revenue Breakdown in 3Q12


32/47

RevenueBreakdownin3Q12Diversifiedrevenuesourcesasadifferential

REVENUEBREAKDOWN

(3Q12)

39.3%:CashEquities

9.2%:Trading

30.1%:Posttrading

.

18.5% 5.2%:DerivativesonStocksandIndices

1.4%:Trading

3.8%:Posttrading

30.1%37.0%:

Financial/Commodities

Derivatives

14.3%:Trading

22.7%:Posttrading

Gross Revenue:R$581.3 million

1.4%

22.7%

4.5%:Depository,Custodyandbackoffice

18.5%:Otherrevenues

3.8%

14.3%

.

3.1%:Vendors

2.2%:TradingAccess(brokers)

1.9%:Listing

.

32

Expenses in 3Q12


33/47

Expensesin3Q12Focusoncostcontrolandhigheroperatingefficiency

Other-0.2%

ADJUSTEDEXPENSESTOTAL

EXPENSES

BREAKDOWN

(3Q12)

(R$million)

47%8%

2%

15%

PersonnelThirdParty

Marketing136.3

163.9

125.4 127.9136.0

14%

Depr./

Amort.

R$174.8MM

Data. Proc.

3Q11 4Q11 1Q12 2Q12 3Q12

ADJUSTEDEXPENSES:3Q11vs.3Q12

(R$million)

ADJUSTEDEXPENSES:2Q12vs.3Q12

(R$million)

4.8 0.1 1.71.5 2.4 0.1

127.9

136.0

2.5

(0.3)(0.8)

136.3 136.0

(0.7) (1.1) (2.5)

2Q12Adj.

Exp.

Personnel Dataproc. Third

Party Commun. Marketing Others 3Q12

Adj.

Exp.3Q11Adj.

Exp.

Personnel Dataproc. ThirdParty Commun. Marketing Others 3Q12Adj.Exp.

33

ADJUSTED OPEX BUDGET


34/47

ADJUSTEDOPEXBUDGET

2013Budget:R$560580million,thesamerangeof2012 Focusoncostcontrol: in2013,inflationar rowthwillbeneutralizedb hi her

efficiency

(inR$millions)

ExpensesCAGR(201013):1.6%pa

InflationCAGR(20102013)5.8%pa9.8%growthofcashequitiesADTV

=>6.6 6.4 7.2 7.6 7.2

5.71 5.58 5.91 5.50 5.73

Averagemarketcap andturnovervelocity

.

HFTsADTVrose24.9%

alltimehighmonthlyADTVofR$8.4billioninSep12

3Q11 4Q11 1Q12 2Q12 3Q12

ADTV(R$billions) Margin(bps)

recor o . m on ra es n

stable

trading

margins

at

5.7

bps

higherturnovervelocityof70.4%

69.3% 66.6% 66.2% 75.0% 70.4%

HFTs:ADTV

R$

millions and

volume

artici ation

%

.

93Q12x2Q12:

. . . . .

3Q11 4Q11 1Q12 2Q12 3Q12

AverageStockMarketCapitalization(BRLtrillions) TurnoverVelocity(%)

.

recordofR$7.6billionin2Q12

margins4.2%higher=>lowerparticipationofinstitutionalinvestorsanddaytrades,whichpaylower fee rates

319.3 249.2 325.3

268.3251.6174.6 146.0

0,273,8

1,329.1 1,311.91,199.1

1,454.1 1,368.9

10.3% 10.3%8.5%

9.4% 9.8%

835.1 916.7 873.91,185.6 1,043.5

3Q11 4Q11 1Q12 2Q12 3Q12

Foreigners Individuals Institutionals %ofoverallmarket 43

BM&FSegmentAverage RPC growth


44/47

AverageRPCgrowth

OPERATINGHIGHLIGHTS

ADV(millionsofcontracts)andRPC(R$)

1 x 11:

+14.7%RPC

=>depreciationofR$/US$rateimpactingRPC1.8 2.30.5 0.5 0.5

0.5

0.5

0.3 0.3 0.30.3

0.4

2.8 2.5 2.73.4

2.7

1.1061.157 1.172 1.133

.

BRLInt.Rates volumesbymaturities(%)

.

.

.

contracts;

=>10.1%increaseinRPCforBRLint.rateduetoconcentrationoftradinginlongermaturitiescontracts 4th and 5th

. . .

3Q11 4Q11 1Q12 2Q12 3Q12

Int.RateBRL FX Indices Others RPC(BRL)

16%4%8%

22%

57%79% 68%

4.0%ADV=>dropinADVofBRLint.rate(2.4%),

indices

(17.3%)

and

FX

(13.8%)

LowerparticipationofHFTs,duemainlytoa

65% 86% 90%

15% 3% 6%7% 2%2%

3Q11 2Q12 3Q12

1stMaturity 2ndMaturity 3rdMa turity 4thMaturity 5thMaturity

HFTs:

ADV

(thd contracts)

and

volume

participation

(%)

93Q12x2Q12:

+ .

=>re ect ng

t e

eprec at on

o

R$/US$rate(6.5%)andreductionofdaytradeoperationsofBRLint.rates

19.8%ADVcomparedtothepreviousrecordof178.7 224.024.4

24.8101.4

9.8

0.9

7.8% 7.2% 8.0% 6.3% 6.7%

419.5335.2

412.2 442.5342.2

300,0

400,0

500,0

. m oncon rac s n

68.2

50.9

46.5

68.7

58.3

148.3119.9 129.5 140.0 73.8

. . .

100,0

200,0

3Q11 4Q11 1Q12 2Q12 3Q12

Equitie s FX Minicontracts Others %inOverallVolume 44

NetincomeNet income impacted by a fall in financial income


45/47

Netincomeimpactedbyafallinfinancialincome

Adjustednetincomedidnotfullycapturetherevenuegrowthduetoaplungeininterestincome

EBITDAgrowthinlinewithoperatingincomegrowth

ADJUSTEDNET

INCOME EBITDA

27.9

(3.9) 14.1 375.6347.5+8.1%

(R$ million)(R$ million)

399.6

. 400.6

Adjustednet

income

etrevenues xpenses nanc a

Income

ncometax

Adjustednet

income3Q123Q11

FinancialIncome:3Q12vs.3Q11

9 R$45.5million, down44.9%

Financial

Revenue:

R$67.6

million,

down

33.7%

due

mainly

(R$ million)

+7.0%

.

.tolowerinterestrates

FinancialExpenses:R$22.1million,a14.0%growthduetodepreciationof24.0%inR$/US$

3Q11 3Q12* Excludes stock options plan and tax on dividends from CME Group.

45

FinalRemarksBVMF better prepared to capture opportunities


46/47

BVMFbetterpreparedtocaptureopportunities

OPPORTUNITIESINBRAZILIANMARKETS

Newrealityof lowerinterestrates

MAINTAININGMARKET

INTEGRITY

Control,governance,transparency and

Capitalmarketssettobecomeamoreimportantalternativeforlongtermfunding

StrengtheningtheintegrityofBraziliancapitalmarketstargetinggrowth

WHATISBVMFDOING?

Investingintensivelyintradingandposttradingplatforms

Increasingfocus

on

customers

(brokers

and

investors):

revisiting

the

fee

structure,

investing

inproductdevelopment

EnsuringmarketintegritybyestablishingefficientcontrolsandstrengtheningBSM

WHATISALREADYHAPPENING!

Operatingleveragematerialization

evenuegrow , esp es oweconom cgrow scenar oan n erna ona ns a y

High

potential

products

have

been

showing

strong

growth46


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bvmf presentation - february 2013

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