presentation - itau conference ny - may 2009

7/30/2019 Presentation - Itau Conference NY - May 2009

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BM&FBOVESPA,

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BRAZILIAN AND INTERNATIONAL MARKET

CONDITIONS

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International ScenarioGroup of 30 (G30)

GROUP OF 30: Financial Report A Framework for Financial StabilityChairman: Paul VockerVice-chairmans: Armnio Fraga Neto (BM&FBOVESPA Chairman) and Tomaso Padua Schiopa

Main proposals

derivatives markets be held to regulatory, disclosure, and transparency standards at least

comparable to those that have historically been applied to the public securities markets.

Financial markets and products must be made more transparent, with better aligned risk andprudential incentives.

problems include trade confirmation backlogs, lack of transparency on transaction reportingand pricing, contract closeout procedures, valuation practices and collateral disputes, anddirect and indirect counterparty credit issues.

Prominent within that program are efforts to establish a central counterparty clearing (CCP)arrangement

Given the global nature of the markets in which such managers and funds operate, it isimperative that a regulatory framework be applied on an internationally consistent basis.

4

overlaps and gaps in coverage and complexity, removing the potential for regulatoryarbitrage, and improving regulatory coordination.


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International ScenarioWhat are the trends for the coming years?

Some exchanges in both Europe and USA are investing and developing Clearing and

Enhancement of the clearing activity

CCP services

Nasdaq OMX: will use EMCF created by Fortis (Nasdaq OMX bought 22% stake

in EMCF)

London Clearinghouse (Clearnet) and Liffe launched a Credit Derivative ClearingService

CME launched its Clearing service (CDMX) for CDSsSecurities Lending

Stock-loan platforms race to offer CCP services in US (see Securities Industry Newsof February 2, 2009)

BM&FBOVESPA in this Scenario

Trading, clearing, settlement and depository services (including securitieslending)

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Transparency on the trading activity


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Fully Integrated Business Model

Services for Issuers andCommodities trading

Trading, Clearing and Depository Activities Other Services

Listing(stocks, bonds, funds,

asset-backed securities,among others)

Trading(stocks, derivatives, corporate and government

bonds, funds, spot US Dollar, among others)

Custody(services provided for

funds, and other marketparticipants)

Commodities Clearing and SettlementMarket Data

er ca on (for all the products)

Indices Licensing

Depository(stocks and corporate bonds)

Software Licensing

Securities Lending

use y ro eragehouses and other

market participants)

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Brazilian Equity MarketRegulatory Framework

All trades must be matched at the beneficial owner level (depository, clearing and

Equities Trading

settlement)

Trades through a brokerage house must be registered in the exchange(internalization of orders at the brokerage level is not allowed)

In the equities market block-trades are under the same trading rules as normaltrades

Clearinghouses settles directly with the Central Bank via an exclusive settlementaccount

Securities lending (stocks and corporate bonds)

Securities Lending (stocks and corporate bonds)

Must be carried in a Clearinghouse (CCP) with collaterals requirement

Settled at the beneficial owner level (the investor takes the decision of lendingand is entitled to its returns)

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Naked short selling is not allowed


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Equity Market Settlement StructureBrazil compared with USA

BRAZIL US

OTC Dark Pools

Trading BVMF ATS ECN

NYSE NASDAQ

C earing CCP BVMF DTCC

BVMF DTCC

Centra Depository

Broker Level

9

Beneficial Owner Level


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Risk ManagementAt the beneficial owner level

Four Clearinghouses: derivatives, stocks and corporate bonds, FX spot and governmentbonds

All of our Clearinghouses acts as CCP and manage the risk at beneficial owner level

Mark to market (margin variation calls) done on intraday basis (each 15 minutes forderivatives market and ongoing for equity market)

e ro erage ouse c ear ng agen s respons e or mon or ng e r c en s r s anknow your customer policies

During the day any Clearinghouse can call additional collateral and the clearing agent is

Clearinghouse ClearingDeposited

(BRL billions)

Required

(BRL billions)

Derivatives 71,4 34,1

ClearingAgent

ClearingAgent

Cash Equities 26,7 16,6

FX 3,7 0,8

Fixed Income 1,0 0,0

Total in BRL 102,7 51,5

Investor Investor Investor Investor

RiskManagement

o a n , ,

* On May 15, 2009

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There is no cross margining among the Clearinghouses

Clearinghouses integration process: project kick off in 2009


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Equity Trading in Brazil (Regulation)

RULES RELATED TO BLOCK TRADING

environment

Absence of OTC market

Absence of alternative trading system, including dark pools

Auction - 1 hour advance announcement: quantity above 10 times thenational average volume or in the 1% - 2,99% range of commons ares or n - , range o pre erre s ares

Auction - 24 hours advance announcement: quantity in the 3% - 6%ran e of common shares or in the 5% - 20% ran e of referredshares

Auction - 48 hours advance announcement: quantity higher than 6%

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o common s ares or o pre erre s ares


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POSSIBLE CHANGES IN THE EXCHANGES REGULATORY FRAMEWORK

draft which, amongst other subjects, deals with b e s t ex e cu t i o n rule

In the justifications section the CVM stated:

Th a t m e asu r e g a i n s g r e a t e r i m p o r t a n c e in a n s ce n a r i o w h e r eco m p e t i t i o n b e t w e en e n v i r o n m e n t s o r s y s t em s f o r t r a d i n g t h e sa m e

.

s im u l t a n e o u s l y t r a d i n g o f a l m o s t a l l s ec u r i t i e s , e x c e p t e d s h a r e s l i s t e di n e x ch a n g e m a r k e t s , w h i ch c a n b e s im u l t a n e o u s l y t r a d e d i n a n o t h e r

e x c h a n g e o n l y . D e s p i t e o f t h a t , i t i s CVM i n t e n t i o n t o a n a l y z e t h i s l a s t

r e s t r i c t i o n t o c om p e t i t i o n .

SOME RULES SHOULD NOT CHANGE

Obligation of a CCP in all trades at the beneficial owner level

Prohibition of internalization of orders at the brokerage level

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BRAZILIAN SEC (CVM) RULE FOR EXCHANGE AND CLEARING COMPANIES

CVM Instruction No 461 rovides for the ossibilit of BVMFclearinghouse to settle trades matched outside BVMF trading systems

A r t . 1 8 . . . Th e m a n a g i n g e n t i t i e s o f o r g a n i z ed m a r k e t s o f s ec u r i t i ess o u a g r e e u p o n em se v e s e o o w n g m ec a n sm s a n r u e s :

I . . .

I I t h a t r e n d e r t h e c l ea r i n g a n d s e t t l em e n t o f t r a n s a c t i o n se f f e c t e d o u t s i d e t h e i r e n v i r o n m e n t s a n d t r a d in g s y s t em s

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BVMF POSITIONING CONCERNING BLOCK TRADING REGULATION

q u a n t i t y d i sco v e r y is more important than p r i ce d i sc o v e r y

Brazilian ADRs are traded in alternative systems and dark pools in US

BVMF could launch a platform designed for block trading with posttrading services and CCP at the beneficial owner level

BVMF can offer post trading services to other possible block tradingproviders

oc ra ng rame:

Minimization of the price impact due to large offers execution,makin the lar e lot electronic tradin viable and anon mous

Development of large lot liquidity in the BVMF system instead of inthe brokers and banks trading desks

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Exchanges and Block Trading SystemsBrazilian ADRs: Brazil vs. USA

THERE ARE 37 BRAZILIAN COMPANIES WITH ADRs PROGRAMS (LEVEL 2 AND LEVEL 3)

Increase on Block Tradings share since 2007 while the NYSE share has beendecreasing

Apr09In Traded Value

32.4%

17.2%

27.9%

22.5%

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Operational HighlightsBM&F Segment

ADTV (millions of contracts)

RPC (BRL)

1Q07 2Q07 3Q07 4Q07 1Q08 A

08 M

08 J

08 J

08 A

08 S

08 O

08 N

08 D

08 J

09 F

09 M

09 A

09 M

09*

InterestRatesinBRL 1,031 0,988 1,049 1,088 1,102 1,040 1,111 1,051 1,098 1,260 1,510 1,391 1,145 0,865 0,796 0,939 0,923 0,921 0,963

FXRates 2,226 2,071 1,937 1,847 1,850 1,805 1,738 1,815 1,767 1,867 2,430 3,041 2,586 2,269 2,183 2,397 2,653 2,543 2,114

Stock Indices 1 279 1 521 1 668 2 013 2 132 2 336 2 104 2 801 2 156 2 288 2 039 2 138 1 398 1 630 1 323 1 792 1 564 1 901 1 527

InterestRatesinUSD 1,108 0,964 0,891 1,032 1,078 1,111 1,178 0,894 0,773 0,844 1,250 2,037 1,501 1,678 1,417 1,469 1,790 1,859 2,050

Commodities 2,921 3,266 3,590 3,670 3,283 4,103 3,645 4,008 3,871 3,734 3,829 4,818 2,309 1,867 1,622 2,298 2,344 2,411 2,043

WebTrading 0,034 0,054 0,069 0,105 0,155 0,161 0,160 0,159 0,151 0,161 0,166 0,170 0,167 0,184 0,171 0,189 0,192 0,206 0,192

OTC 2,764 2,239 1,904 2,388 2,057 2,389 2,466 2,110 2,389 2,405 3,348 3,195 2,765 1,807 1,646 2,358 3,175 1,588 0,781

TotalRPC 1,302 1,274 1,320 1,416 1,401 1,347 1,398 1,404 1,337 1,567 1,896 2,071 1,732 1,414 1,213 1,484 1,361 1,440 1,373

17* Until May 8, 2009


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Operational HighlightsBovespa Segment

ADTV (BRL Billions)

Daily Average Number of Trades (Thousands)

Number of Investors (Thousands) Turnover Velocity** (annualized)

18* Until May 11, 2009 **Relation of the trading value in the cash market and the market cap of the exchange


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Operational Highlights

BM&F Segment (Investors Participation in Total Volume)

Bovespa Segment (Investors Participation in Total Value)

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Bovespa SegmentForeign investment flow

The 1Q09 net foreign investment flow was BRL 1.3 Billion, the best sincethe Brazils Investment Grade (May08)

In Apr09 the net foreign investment flow was BRL 5.7 Billion, the bestmonth since Apr08

20* Until May 12, 2009


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New IT DevelopmentsSchedule

BOVESPA SEGMENT

May

Starting in May we will have completed the implementation of the new version of thesoftware on which the MegaBolsa electronic trading system runs, as developed by NYSEEuronext. The new version (V900) replaces the V837 version implemented in June 2008.

It is estimated that the average internal processing time, known as RTT (round time, , . ,

with the implementation of the new low latency multi-level communication interface (thenew Multi Gateway), scheduled for July 2009, the RTT will drop to 15 milliseconds and itis estimated that it will fall to 8 milliseconds until December 2009

Reduction in fees charged for orders entered in the MegaBolsa trading system, and not

matched, which drove growth in algorithmic trading

July

Authorization to DMA via provider implementation (DMA model 2) in the MegaBolsatrading system (to be approved by Brazilian Securities Exchange Commission - CVM)

August

Completion of the project to increase the capacity of the equities clearinghouse(formerly, CBLC) to 1.5 million daily trades

Offering of co-location services (connectivity to the MegaBolsa system)

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Thomson Reuters connected to the Exchanges MegaBolsa system to provide customers

with an international order routing system


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Bovespa SegmentTrading system development

User Distribution Intermediary

(CM/Broker) BM&FBOVESPA

BVMF/HP

MEGABOLSASTATION

SCOM,SNEG,

SCOT

NYSEEuronextAccess

Via

Intermediary

SLE

GLTrade

GLWIN

NETWORK

Traditional

DMA

Homebroker

NETWORK NETWORK

MultiGateway

23

RTT Forecast 54 135288 1584

an


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BVMF/HP

MEGABOLSASTATION

SCOM,SNEG,

SCOT

NYSEEuronextAccess

Via

Intermediary

SLE

GLTrade

GLWIN

NETWORK

NSCV900

Traditional

DMA

Homebroker

NETWORK NETWORK

MultiGateway

24


an


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BVMF/HP

MEGABOLSASTATION

SCOM,SNEG,

SCOT

NYSEEuronextAccess

Via

Intermediary

SLE

GLTrade

GLWIN

NETWORK

NSCV900

NewMultiGateway

Traditional

DMA

Homebroker

NETWORK NETWORK

25


an


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BVMF/HP

MEGABOLSASTATION

SCOM,SNEG,

SCOT

NYSEEuronextAccess

Via

Intermediary

SLE

GLTrade

GLWIN

NETWORK

NSCV900

NewMultiGateway

Traditional

DMA

Homebroker

AnyISV

NETWORK NETWORK

ViaDMA

Provider

BloombergTradeBook

ThomsomReuters

OthersNETWORKDMAProvider

ViaDMA

Colocation

Remoteaccess trackingand

maintenance

ApplicationofColocation(ATS)NETWORK

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an


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New IT DevelopmentsSchedule

BM&F SEGMENT

May

Bloomberg Tradebook connected to the Exchanges Global Trading System (GTS)to provide customers an international order routing system

June

GL Trade (GL Net) connected to the Exchanges GTS to provide customers aninternational order routing system

-

Shutdown of the trading floor

BOTH BM&F AND BOVESPA SEGMENTS

November

Implementation of the integrated external communication interface for bothMegaBolsa and the GTS systems, which will permit market data transmission fromeither system via a single channel.

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DMA and CME order routing evolution

DMA EVOLUTION

Trades through DMA represented 6.7% of total BM&F Segment ADTV in Apr09

ORDER ROUTING AGREEMENT WITH CME Group (GLOBEX)

Initial flow starting in Mar09 with an ADTV of 13.6 thousand contracts in Apr09

ALGOTRADERS IN BM&F SEGMENT

First algotraders represented 0.45% of overall ADTV in Mar09 and rose to 0.53%n pr , regar ng e on rac s e par c pa on was . an . ,

respectively

DMA Evolution

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* Until May 8, 2009.


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CME Globex Order Routing Agreement

RoutingOrderGLOBEXGTS NumberofContractsTraded

20.000

25.000

.

5.000

10.000

.

RoutingOrderGLOBEXGTS NumberofTrades

1.200

1.600

400

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5ma

r

10ma

r

13ma

r

18ma

r

23ma

r

26ma

r

31ma

r

3ab

r

8ab

r

14ab

r

17ab

r

23ab

r

28ab

r

27ma

r

30ab

r

6mai

IT D l


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IT DevelopmentsCo location infrastructure

BM&FBOVESPA WILL BE PREPARED FOR THE CO-LOCATION FOR BM&F SEGMENT INJUN09 AND FOR BOVESPA SEGMENT IN THE 3Q09

a ac s

UnitHosting

Structure where are installed

colocationsarea

30

t e sw tc esan servers

Gl b R ti A t


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Globex Routing AgreementGlobex to BM&FBOVESPA flow

US BRAZIL

FCM prop

CME Group

Globex

BM&FBOVESPA

GlobexNetwork

GTSNetwork

InvestorsInvestors

MATCHING

Investors

FCM

Investors

Some FCMs (Futures Commodities Merchant) should offer DMA access to BVMF derivatives to

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BM&FBOVESPA

is

helping

the

main

back

office

system

providers

to

adapt

their

systemsTradingofFutureIbovespaContractsbyUSresidentspendingtobeapprovedbyCFTC

IT D l t


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IT DevelopmentsMore suitability for Algotraders

ALGORITHMIC TRADING PROFILE AND OPPORTUNITIES

Arbitrage (determinist and statistic) - high frequency

Cash Market versus ETF (Exchange Traded Fund)

Cash Market versus Futures on Stock Index

omes c ares versus s

Futures versus Options

Different s ex irations of the same future contract

Trading of interest rate slope curve

Trading with correlated instruments (soya bean BVMF x soya bean CME, coffee

Mini contracts versus Standards contracts

Order books de th

DETERMINANT FACTORS

Liquidity e volatility

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Electronic Access and low risk of execution

Prices charged by the Exchange


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1Q09 Highlights versus 1Q08 Pro Forma

EPS: BRL 0.11 compared with BRL 0.11 in 1Q08

1Q09 EARNINGS Net Income / Adjusted Net Income* (BRL Millions)

-1.4% 12.2%

e evenues: ecrease y . over e pr or year

EBITDA margin: 55.8% in 1Q09 (67.5% Adjusted EBITDA)vs. 68.5% in 1Q08

Expense reduction: decreased by 17.4% between 1Q09 and1Q08 (excluding depreciation, severance and Stock OptionPlan costs)

HIGHLIGHTS

EBITDA / Adjusted EBITDA* (BRL Millions)

68.5% 68.5%

DMA development in BM&F Segment: in Apr09, tradesthrough DMA rose to 6.7% of the total traded volume

Globex and Algotraders: initial flow starting in Mar09 with

-34.8% -21.3%

55.8%67.5%

an ADTV of 13.6 thousand contracts in Apr09; in 1Q09, Algorepresented 0.3% of Total ADTV and 0.6% of FX contracts

Foreign Investors: positive flow in 1Q09 of R$ 1.3 billion and

Total Expenses / Adjusted Expenses** (BRL Millions)

12.2%

MegaBolsa: new version (V900) launched on April 28 willreduce latency by 41%

-17.4%

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in May09

* Adjusted Net Income and Adjusted EBITDA exclude severance and stock option plan costs.

** Adjusted Expenses exclude depreciation, severance and stock option plan costs.


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Summary of Income Statement

BRL Million

1Q09 1Q08

(ProForma)

Variao

1T09/1T08

ross pera ona evenues , , .

NetOperationalRevenues 316,548 396,031 20.1%

OperationalExpenses (148,760) (132,550) 12.2%

OperatingIncome 167,788 263,481 36.3%

O er.Mar in variationin . 53.0% 66.5% , . .

NetIncome 226,980 230,273 1.4%

NetMargin(variationin p.p) 71.7% 58.1% 13,6p.p.

EBITDA 176,739 271,258 34.8%

EBITDAMargin(variationinp.p) 55.8% 68.5% 12,7p.p.

EarningsperS are EPS 0.113 0.115 1.4%

AdjustedNet

Income 258,340

230,273

12.2%

AdjustedNetMargin(variationin p.p.) 81.6% 58.1% 23.5p.p.

AdjustedEBITDA 213,539 271,258 21.3%

Revenues: 1Q09 versus 1Q08 comparison shows a 20.2% fall in Net Revenues, mainly due tolower volumes in both segments

. . . . . p.p.

Adjusted Operating Expenses: reduction by 17.4% in 1Q09 versus 1Q08 due to cost savingsfrom the integration process

Adjusted Net Income: in 1Q09 the adjustments amounted to BRL 31.4 million due to stock

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op on p an . m on an emp oyee erm na ons . m on, ne o ax

Adjusted EBITDA: in 1Q09 the adjustments amounted to R$36.8 million due to stock option plan(BRL 18.8 million) and employee terminations (R$ 18 million)


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Revenues

Gross Revenues Composition 1Q09 1Q09 1Q08(ProForma) Variation1Q09/1Q08GrossOperationalRevenues 351,918 440,919 20.2%

BM&FSegment 130,547 154,938 15.7%

Derivatives trad./settlement 121,434 148,664 .

ForeignExchangetrad./settlement 5,692 4,620 23.2%Securitiestrad./settlement 44 107

58.9%BrazilianCommodities Exchange 1,406 932 50.9%BM&FBank 1,971 615 220.5%

BovespaSegment 200,503

270,527

25.9%

, , .

Clearingfees 44,464 66,04432.7%

SecuritiesLending 6,127 15,38060.2%

Listing 10,621 7,123 49.1%Depositaryand custody 16,084 14,319 12.3%Tradingaccess (Brokers) 9,475 3,319 185.5%

OtherOperationalRevenues 20,868 15,454 35.0%

Vendors 11,521 9,688 18.9%

Commoditiesclassification

fees 215

171

25.7%

Dividends 5,371

Others 3,761 5,59532.8%


The revenues from other services (not tied to trading) increased by 16.5% over the prior year toBRL 66.5 million (BRL 57.1 million in 1Q08), mainly from:

.

Listing: new pricing policy: increased by 49.1%

Trading Access Services: implementation of a policy for brokerage house access in bothsegments: increased by 185.5%

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Vendors: higher number of users: increased by 18.9%

The share of non-trading sources increased to 18.9% of total revenues in 1Q09 versus 13% in 1Q08


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Expenses

Adjusted Operational Expenses* 1Q09 1Q09 1Q08(ProForma)

Variation1Q09/1Q08


Personnel 85,462 54,968 55.5% Data processing (26,683) (35,567) 25.0% Deprec.andAmortization (8,951) (7,777) 15.1% ThirdPartyServices (9,119) (9,228) 1.2%

Maintenance (2,826)

(3,243)

12.9% , , . Leases (825) (972) 15.1% Supplies (477) (516) 7.6% Marketing (2,292) (7,153) 68.0% Taxes (495) (1,513) 67.3% oar ompensa on , , 44.5% Other (5,510) (5,353) 2.9%

AdjustedOperationalExpenses* (103,009) (124,773) 17.4%

AdjustedPersonel** (48,662) (54,968) 11.5%

The 1Q09 operating expenses (excluding depreciation, severance and stock option plan costs)decreased by 17.4% over the prior year to BRL 103.0 million. The decrease reflects theachievement of planned merger synergies. The principal drivers of the decline in expenses werein the following cost components:

Personnel (adjusted): decreased by 11.5% due to reduction in headcount

Data processing: decreased by 25.0%

37

ar e ng: ecrease y .

* Excluding depreciation, severance and stock option plan costs.

** Excluding severance and stock option plan costs.

Merger and Integration Process


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Merger and Integration ProcessEvolution

MAIN INITIATIVES FOR COST REDUCTION IN 2009

Open Outcry: closing in Jun09

Infrastructure: reduction in the number of buildings in downtown So Paulo (from 5 to 2)

Branches: realignment of the remaining branches

,employees and outsourced personnel

Adjusted Operational Expenses (excluding depreciation) in 1Q09 was BRL 103.0 million

Guidance of Operational Expenses of BRL 450 million in FY09 (excluding depreciation and stock

option plan costs)

38* 2007 operating expenses adjusted by inflation.

C it l d B l Sh t Hi hli ht


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Capital and Balance Sheet Highlights

Cash and Cash Equivalent: BRL 3.15 billion held at end of 1Q09 (short + long term)

Includes cash collateral of BRL 1.14 billion and restricted funds of BRL 610m on

Goodwill Amortization: BRL 245.5 million in 1Q09 (net tax impact of BRL 79.6

million)

Effective tax rate of 3.6% in 1Q09

Payout: BRL 112 million in interest on shareholders equity, equivalent to R$0.0559per s are, w c amoun s o . ne o w o ng ncome ax

To be paid on May 29, 2009, based on the position as of May 15, 2009

uy ac program: up o . m on s ares

Program earlier terminated (Board Meeting on May 12, 2009)

. . m on s ares oug a e average pr ce o . o a oBRL 267.2 million

Stock Option and Leasing Expenses: non-cash charge of BRL 19.0 million taken in

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o a us our nanc a a emen s o e new accoun ng s an ar s, mov ngtowards IFRS


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APPENDIX

40

I St t t 1Q09 1Q08 (P F )


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Income Statement 1Q09 vs 1Q08 (Pro Forma)

BRL Thousands

1Q09 1Q08

(ProForma)

Variation

1Q09/1Q08

ross pera ona evenues , , .

Trading/ClearingSystems BM&F 130,547 154,938 15.7%Trading/ClearingSystemsBovespa 200,503 270,527 25.9%OtherOperationalRevenues 20,868 15,454 35.0%

, , .



OperatingIncome 167,788 263,481 36.3%

O er. Mar in variation in .

. . . . .

FinancialIncome 67,859 77,792 12.8%

Incomebefore

Taxes 235,647

341,273

31.0%

IncomeTaxandSocialContribution (8,372) (111,363) 92.5%

.

NetIncome 226,980 230,273 1.4%

NetMargin(variationinp.p) 71.7% 58.1% 13.6p.p.

EBITDA 176,739 271,258 34.8%

EBITDAMar in

variation

in

. 55.8% 68.5%

.

. .

EarningsperShare(EPS) 0.113 0.115 1.4%

AdjustedNetIncome 258,340 230,273 12.2%

AdjustedNetMargin(variationinp.p.) 81.6% 58.1% 23.5p.p.

41

A juste EBITDA 213,539 271,258 21.3%

AdjustedEBITDAMargin(variationinp.p.) 67.5% 68.5% 1.0p.p.

Adjusted Income Reconciliation


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Adjusted Income Reconciliation

R$million Q109EBITDA Cor orate 176.7

ADJUSTEDINCOME

RECONCILIATION

(+)AdjustmentsSeveranceexpenses (18.0)

Stockoptionexpenses (18.8)

us e .

NetIncome(Corporate) 227.0

(+)AdjustmentsSeveranceexpenses (12.6)

Stockoptionexpenses (18.8)

NetIncome

(Adjusted) 258.3

ThisexpensegeneratedataxeffectofR$16MMinQ109,whiletheremainingR$2MM

. , ,

Q109'sshareisexcludedplusthefullportionofthesubsequentperiod,accordingtothefollowing:

AmountrecognizeduntilMarch31 (16.0)

Taxeffect(34%discount) (10.6)

AmountrecognizedafterMarch31 (2.0)

FULLADJUSTMENT (12.6)Thestockoptionexpenseisconsideredasnondeductiblefortaxpurposes.

42

, .

Balance Sheet as of 03/31/2009


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Balance Sheet as of 03/31/2009

BRL Thousands

ASSETS LIABILITIESANDSHAREHOLDERS' EQUITY

, , , ,

Cashandcashequivalents 2,592,074 Collateral fortransactions 1,135,943

Othercredits 222,499 Others 541,287

Longterm

receivables 730,230

Non

current 47,538

Financialinvestments 553,643

Othercredits 176,587 Minorityinterestinsubsidiaries 15,632

Investments 1,318,279

ropertyan equ pment , , ,

Intangibleassets 16,094,517

TOTALASSETS 21,204,279 TOTALLIABILITIESANDSHAREHOLDERS' EQUITY 21,204,279

43

Business Model


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Trading flow

BM&FBOVESPA SYSTEMS

l

1. Order

3. $1. $

1. Order

SellerBuyer BrokerageBrokerage

Trading System

D

icialownerlev

nk)

3.$

epositoryand

ntatthebenef

Clearinghouseand Depository

(viaCentralBa

(via

CentralB

2s

iskmanageme

riskmanageme

2.$

nk)

Settlement

Agent

Settlement

Agent

.Stocks/Co

ntc

ks/Contract

ntattheben

ef

epositoryand

racts

3.St

icialownerlev

44

Buyer Seller

l



45/56


USA BRAZIL

CMEGROUP

GLOBEXBM&FBOVESPA

GTS

GLOBEXcommunication

network

GLOBEX

NETWORK

GTS

NETWORK

MATCHINGMATCHING

SellOrderforS&P500Futures BuyOrderfor ID1Futures

SETTLEDINUSDBYCMES

CLEARINGHOUSE

SETTLEDINBRLBYBM&FBOVESPAS

DERIVATIVESCLEARINGHOUSE

45



46/56


USA BRAZIL

contracts

CMEGROUP

GLOBEXBM&FBOVESPA

GTS

GLOBEX

NETWORK

Highspeedandhigh

ca acit

GTS

NETWORK

SellorderforanID1futures

contracts

MATCHINGinternationallink

SETTLEDINBRLBYBM&FBOVESPAS

DERIVATIVESCLEARINGHOUSE,WHICH

CANBEFACILITATEDBYBM&FBANK

46



47/56


USA BRAZIL

CMEGROUP

GLOBEXBM&FBOVESPA

GTS

GLOBEX

NETWORK

Highspeedandhigh

capacity

GTS

NETWORK

SellorderforS&P500Futures

MATCHING internationalhigh

SETTLEDINUSDBYCME S

CLEARINGHOUSE,WHICHCANBE

FACILITATEDBYBM&FBANK

47

DMA Development


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DMA Development

DMA BM&F SEGMENT

Number of Brokers that offer - DMA

20

10

15

5

Aug

08

Sep

08

Sep

08

Oct08

Oct08

Nov

08

Nov

08

Dec

08

Dec

08

Jan

09

Jan

09

Feb

09

Feb

09

Mar09

Mar09

Apr09

Apr09

May

09

48

DMA Development


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DMA Development

Trading via DMA in BM&F Segment Number of Contracts Traded

400.000

200.000

300.000

0

100.000

Trading via DMA in BM&F Segment Number of Trades

30.000

40.000

10.000

.

49Aug

08

Sep

08

Sep

08

Oct08

Oct08

Nov

08

Nov

08

Dec

08

Dec

08

Jan

09

Jan

09

Feb

09

Feb

09

Mar09

Mar09

Apr09

Apr09

May

09

New Pricing Policy


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BM&F Trading: implementation of a new price grid for BM&F segment basedon volumes aiming at neutrality when compared with Aug08 framework:

,

BOVESPA Trading and Depository Service

Tra ng: progress ve re uct on o c ear ng ees c arge to reta nvestorsand private and public companies in the cash market: beginning on May4th, 2009

Progressive reduction: 0.0005% until Oct09; 0.0010% until Jan10;

0.0015% from Feb10 onwards

value under custody with the depository: beginning on May 4th, 2009

Progressive discounts: 67% until Oct09; 33% until Jan10; full new

Securities Lending: rebate (5 bps) to the lenders, except for non residents:beginning on May 4th, 2009

50

Market Data: since Apr09 - closer to international prices

Securities Lending (BTC)


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g ( )

Specific regulation for securities lending activity

Must be carried in a Clearinghouse (CCP)

Trading systems offers registration

Lending is a investors decision and its done through a brokerage house

Settlement agents are responsible by their clients settlement and collateral

Full disclosure of the open interest positions by company on daily basis

Corporate actions adjustments

Risk management at the beneficial owner level with collateral requirement and dailymar o mar e

Position Limit

nves or: e o a y o pos ons canno excee o e ree oa ng o ecompany

Broker: the totality of positions cannot exceed 6.5% of the free floating of the

51

company

Market: the totality of positions cannot exceed 20% of the free floating of thecompany

BM&FBOVESPAOne stop shop


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One-stop-shop

Trading, Clearing and Settlement Services

Cash Market Derivatives Market

Equities

- Equities

- International Companies (BDR)

- Closed-End Funds

-Exchange Traded Fund (ETF)

Fixed Income

- Federal GovernmentBonds

- Debentures

-Commercial Papers

Equities

- Stock Options

- Stock Index Futures, Options, andOptions on Futures

- Futures on Stocks

-

Fixed Income (Options & Futures)

- Interest rate

- Dollar denominated domestic yieldcurve

-

Interest rate x price index

- Real-Estate Investment Trust(REIT)

Corporate Governance Levels

- Novo Mercado

-

- or gage- ac eSecurities

- Asset BackedSecurities (FDIC)

- NEW: CorporateGovernance Bonds

-

- Warrants

- POP (Protected and ParticipativeInvestment)

Structured Products

-

- Price index (PPI/CPI)

- Sovereign debt bond (Global Bond,A Bond, US Treasury)

- CDS (SPOT Market)

- Level 1

- BOVESPA MAIS (SMEs)

Indexes (Benchmarks)

- IBOVESPA, IBrX100, IBrX50,

Currencies

-US Dollar

Commodities

-

- Spread Strategies

- Volatility Trading (Stock Index,

Interest Rate, Exchange Rate)- Forward Rate Agreements

Currencies

- US Dollar

-Euro

Commodities (Options & Futures)

IVBX-2

- Sectorial: IEE (Energy), ITEL(Telecom), INDX (Industrial)

- Corporate Governance: IGX, ITAG

- Corporate Sustainability Index

- SWAPs (Interest Rate, ExchangeRate, Price Index, Stock Index, Gold)

- Flexible Options (Stock Index,Exchange Rate, Interest Rate)

- Metals

- Arabica Coffee - Conillon Coffee

- Sugar - Ethanol

- Cotton - Corn

- Soybean - Live cattle

- Feeder cattle

- Listing - Securities Lending

- Depository and Custody - Settlement Bank

Other Products and Services

52

- Market Data - Indices Licensing

- Software Licensing

Operational HighlightsBM&F Segment


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BM&F Segment

Overall ADTV (Thousands) Interest Rates in BRL (Thousands)

FX Rates (Thousands) Indices (Thousands)

53

* Until May 8, 2009.

Operational HighlightsBOVESPA Segment


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BOVESPA Segment

ADTV (BRL Millions) Average Number of Trades (Thousands)

Number of Investors (Thousands) Turnover Velocity** (12 months)

54

* Until May 11, 2009.

** Relation of the trading value in the cash market and the market cap of the exchange

Board Members (2009 2010)


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BOARD MEMBERS

Armnio Fraga (Chairman)* - Gavea Investimentos

Claudio Haddad* - Ibmec

Fabio de Oliveira Barbosa* - Vale (CFO)

Jos Roberto Mendona de Barros* - Economist and Consultant

Marcelo Fernandes Trindade* - Lawyer

Rene Marc Kern* - General Atlantic

Renato Diniz Junqueira Intercap

Candido Botelho Bracher Itau BBA

Luis Stulhberger Credit Suisse Hedging-Griffo

Craig Donohue CME Group

Julio Siqueira de Arajo Bradesco (Vice President)

55

* Independents


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BM&F Boves a Investor Relations

Web page: www.bmfbovespa.com.br/ri

Phone numbers: 55 11 3119 2007/ 3728 / 3729 / 3734

E-mail: [email protected]

56

presentation - itau conference ny - may 2009

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