February2013

ForwardLookingStatements

Thispresentationmaycontaincertainstatementsthatexpressthemanagementsexpectations,beliefsandassumptions
aboutfutureeventsorresults.Suchstatementsarenothistoricalfact,beingbasedoncurrentlyavailablecompetitive,
financialandeconomicdata,andoncurrentprojectionsabouttheindustriesBM&FBovespaworksin.
Theverbsanticipate,believe,estimate,expect,forecast,plan,predict,project,targetandothersimilar
verbsareintendedtoidentifytheseforwardlookingstatements,whichinvolverisksanduncertaintiesthatcouldcause
actualresultstodiffermateriallyfromthoseprojectedinthispresentationanddonotguaranteeanyfutureBM&FBovespa
performance.
performance
Thefactorsthatmightaffectperformanceinclude,butarenotlimitedto:(i)marketacceptanceofBM&FBOVESPAservices;
(ii)volatilityrelatedto(a)theBrazilianeconomyandsecuritiesmarketsand(b)thehighlycompetitiveindustries
p p
;( )
g
( )
g
g
( )g
p
BM&FBovespaoperatesin;(iii)changesin(a)domesticandforeignlegislationandtaxationand(b)governmentpolicies
relatedtothefinancialandsecuritiesmarkets;(iv)increasingcompetitionfromnewentrantstotheBrazilianmarkets;(v)
abilitytokeepupwithrapidchangesintechnologicalenvironment,includingtheimplementationofenhanced
functionalitydemandedbyBM&FBovespacustomers;(vi)abilitytomaintainanongoingprocessforintroducing
competitivenewproductsandservices,whilemaintainingthecompetitivenessofexistingones;(vii)abilitytoattractnew
customersindomesticandforeignjurisdictions;(viii)abilitytoexpandtheofferofBM&FBovespaproductsinforeign
jurisdictions.
Allforwardlookingstatementsinthispresentationarebasedoninformationanddataavailableasofthedatetheywere
made,andBM&FBovespaundertakesnoobligationtoupdatetheminlightofnewinformationorfuturedevelopment.
This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities nor shall there be
Thispresentationdoesnotconstituteanoffertosellorthesolicitationofanoffertobuyanysecurities,norshallthere
anysaleofsecuritieswheresuchofferorsalewouldbeunlawfulpriortoregistrationorqualificationunderthesecurities
law.NoofferingshallbemadeexceptbymeansofaprospectusmeetingtherequirementsoftheBrazilianSecurities
CommissionCVMInstruction400of2003,asamended.

BVMFSTOCKPRICE
Recent Performance
RecentPerformance

BVMF3 Recentperformance

BM&FBOVESPA

BVMF3YTD:0.4%

IBOVESPA

IOFs
10/17
R$14.97

Ibovespa YTD: 2
IbovespaYTD:
2.0%
0%

Updateduntil01/31/2013.

Jan13

Dec12

Nov12

Oct12

Sep12

Aug12

May12

Apr12

Mar12

Oxera s Report
Oxera's
Report
Release
06/18
Feb12

Jan12

Dec11

Nov11

Oct11

Sep11

DirectEdge
Direct
Edge
11/21
R$10.11
Aug11

Jul11

Jun11

May11

Apr11

Mar11

Feb11

Jan11

Dec10

0
Nov10

Oct10

Sep10
0

Aug10

ExchangesMergers BATs
02/15
02/08
R$11.43
R$11.18
NewIOFon
Derivatives
07/26
R$9.55

Removalof
IOFonEquities
12/01
R$10,54

Jul12

Rumors
aboutIOF

ChangeofIOF
onforeign
exchange
t
transactions
ti
06/14

Jun12

Goodwill
p
Competition
/
11/30
R$13.01 News
01/05
R$13.10
ReductionsofVolumes
EstimatesbytheMarket

BRAZILIANMARKETOPPORTUNITIES

EquityMarket(BOVESPASegment)
LowpenetrationintheBrazilianmarket
Clients base: huge potential in retail and pension funds segments
Clientsbase:hugepotentialinretailandpensionfundssegments
Numberofcustodyaccounts(thousands)
Jan'13
610 3
610.3

Pensionfundsportfolio
Lowpenetrationofequity
andderivativesinthemain
and
derivatives in the main
investorsportfolios
Stableandlowinterest
rateenvironmentencourage
moreexposureinequities
i
iti

Jan0
05
Jul0
05
Jan0
06
Jul0
06
Jan0
07
Jul0
07
Jan0
08
Jul0
08
Jan0
09
Jul0
09
Jan1
10
Jul1
10
Jan1
11
Jul1
11
Jan1
12
Jul1
12
Jan1
13

Jan'05
'
128.6

Recentgrowthinthenumber
ofretailinvestors,butstill
lowcomparedtoother
markets

R$574billion
$

Equity
FixedIncomeandOthers
69.9%
R$168billion
72.3%

30.1%

27.7%
2002

2011

ListedCompanies
Dec12 Listed Companies
Dec12ListedCompanies

Lownumberoflistedcompaniescomparedto
othercountries

6,856

Lackofimportanteconomicsectorsinthe
exchange for instance: oil & gas infrastructure
exchange,forinstance:oil&gas,infrastructure,
retail,ITandpharmaceutical,

4 916
4,916
4,041

3,972

3,481

3,200

2,767

2,056

1,784
364

India

USA

China/
HK

Canada

Japan

Source:ABRAPP,WFEandBM&FBOVESPA

Spain

UK

Australia

Korea

Brazil

Investmentcyclemaybringnewcompaniesand
sectorstotheexchange
Currently,SMEsarenotabletoraisemoney
throughequityeasily
6

DerivativesMarket(BM&FSegment)
Growthincreditlevelwillfavorvolumes
Credit: very low credit level and even lower in the case of mortgage transactions
Credit:verylowcreditlevelandevenlowerinthecaseofmortgagetransactions
TradeFlow(totalImports+ExportsinUSDbillions)

CredittoGDP
Mortgage

53.5%

TotalCredit

281

466
466

2011

2012

384

371

27.4%

482

281

229

6.3%

Jan01
Jul01
Jan02
Jul02
Jan03
Jul03
Jan04
Jul04
Jan05
Jul05
Jan06
Jul06
Jan07
Jul07
Jan08
Jul08
Jan09
Jul09
Jan10
Jul10
Jan11
Jul11
Jan12
Jul12

4.5%

2006

2007

2008

2009

2010

InterestRateinBRLcontracts:growthincreditlevels,speciallyinfixedrates,supportincreasetheactivityof
financial institutions
financialinstitutions
FXcontracts:growthintheamountofforeigntradingandchangeinthecultureofhedgingfromentrepreneurscan
pushupvolumesinthisgroupofcontracts,mainlyincurrenciesotherthanUS$
Indexbasedcontracts:growthincashequitymarket,thelaunchinganddevelopmentofETFsandthegrowthof
exposuretoequitybyinstitutionalinvestorscandrivethegrowthofthesecontracts
Commoditiescontracts:cashsettledcontractsandthechangeinthebehavioroffarmersthatarebecomingmore
sophisticated
7

MAININITIATIVES

ConsistentGrowth
Historicrecordofvolumeskeepinglongtermgrowthtrend
TesouroDireto

ETFs ExchangeTraded Funds

ADTV

AverageNumberofInvestors RetailInvestors

(inR$millions)

(inthousands)

155.8
115.9
18.6 28.5

102.3107.5

97.6

82.7
64.4

91.5
23.8 27.5

48.7

2009 2010 2011 2012

1Q12 2Q12 3Q12 4Q12

36.3 42.3

Jan/13

AverageAssetsunderManagement*

AverageAssetsunderCustody
(in R$ billions)
(inR$billions)

(inR$millions)
$

2,336 2,541

1,974
1 032
1,032
271

85.7
78.9 83.0 86.0

1,322

2,422
6.1

579

2009 2010 2011 2012

*ExcludedPIBB11.

8.6

1,696
1.3

1Q12 2Q12 3Q12 4Q12

1.8

2.9

7.9

8.8

9.3

9.3

3.9

Jan/13
9

HighGrowthProducts
RealEstateFunds(FII)andAgribusinessCreditBills(LCA)
FIXEDINCOMEANDREALESTATEPRODUCTS
Real Estate Funds (FIIs)
RealEstateFunds(FIIs)

Agribusiness Credit Bills (LCAs)

AgribusinessCreditBills(LCAs)

60

36.5

50.3

50
40
30

25.3

20

0.1

10

ADTV(R$MM)

dez12

nov12

out12

set12

ago12

jul12

jun12

mai12

abr12

mar12

fev12

jan12

2012

2011

2010

2009

2008

2007

0
Assetsundercustody(R$billion)

MktCap(R$BN)

97.1

38%

62%

19.7

#ofinvestors

Mkt.ShareBVMF

Other

10

HighGrowthProducts
Increasedsophisticationofmarketparticipants
HIGHGROWTHPRODUCTS

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

SecuritiesLending(OpenInterest)
(R$ billion)

CAGR:+35.9%

CAGR:+44.0%
276.3 +42.2%
276.3
+42 2%
57.0
Other
PETR+VALE

219.3

280.1
280.1
81.2

9.3%
198.9

2011

2012

269

256

2009

2010

528
2011

805

20.5

12.7
2012

2009

2010

30.2

31.9

2011

2012

Tesouro Direto (custody R$Bn)

TesouroDireto(custody
R$ Bn)

ETFs (ADTV
(ADTV R$MM)
R$ MM)
CAGR:+84.0%

CAGR:+45.7%

115.9
18.6

28.5

48.7

2009

2010

2011

2012

2.9

3.9

2009

2010

6.1
2011

9.0

2012

11

StrategicProjects
Multiassettradingplatform(PUMATradingSystem)
Stateoftheartintradingtechnologyandtechnologicalindependency
Derivativesmodulesuccessfullyimplementedin2H11
Equitiesmarkettobeconcludedin1Q13
LicensingTRADExpress RealTimeClearingsystem
Objective:integratingandmodernizingourexistingclearingfacilitiesshouldproceedover2013.
Integrated tests with the market and implementation of the systems scheduled to take place in 2013/2014
Partnership advantages:
License
Li
t use the
to
th software
ft
Access to the source code
Selling rights over our new clearing platform
RegistrationsystemsforOTCderivatives
Objective: modernize,improveandexpandtherangeofourregistrationservicesforOTC
derivatives,whileofferingourcustomersastreamlined,qualitysolutionandthorough
regulatory reporting tool
regulatoryreportingtool
Oneofthemostflexibleandcompleteenginesforregistration,pricediscovery,risk
assessment,captureandlifecycleprocessingofthesetransactions
Threemoduleimplementation:thefirstoneisscheduleto2H12,thesecondonefor
1H13andthirdmoduleoftheplatformwillbeannouncedinduecourse

12

ClearingHouses Integration
Building astate of the art platform

Derivatives
(R$ 107 bn*)
(R$107bn*)
Financialand
commoditiesderivatives
diti d i ti
(futures,optionsand
forward)
OTCderivatives

EquityandCorporate
Debt (R$ 70 bn*))
Debt(R$70bn

FX
(R$ 4 b *)
(R$4bn*)

Equity,ETFsand fixed
income cash market

FXspotmarket

Equity and indices

derivatives (optionsand
forward)

(US$vs.R$)

Securities
(R$ 1 b *)
(R$1bn*)
Cash market and forward
market
k t forgovernment
f
t
bonds

Securities lending

INTEGRATED CLEARING HOUSE**

INTEGRATEDCLEARINGHOUSE**
=

Capitalefficiency

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

MainProjects
Deliveriesalreadyimplementedandprogrammed

INTENSEDELIVERYPHASESTARTINGIN4Q12

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14

4Q14

(...)

Migration of
PUMA
Trading
S t
System
(equities)

Fixed income
registration
platform

Fixed income
trading
platform

OTC Derivatives
Platform (Calypso)
Cross
listing
New integrated clearing house/ CORE*

Construction of the New Data Center

(...)

Fee structure redesigning and introduction of incentive programs

(...)

( )
(...)

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

( )
(...)

*IPN/COREimplementationrequirestheauthorizationoftheregulators.

14

BUSINESSMODELANDREGULATORY
FRAMEWORK

15

PossibleCompetition
Importantconsiderations
EASINGREGULATIONISNOTEXPECTED
Mainrequirements:pretradecontrols,selfregulatory(SRO),offexchangetradesarenotpermitted(internalization
ofordersandOTC),CCPforstockstrading,posttradingatthebeneficialownerlevel
Competitioninotherexchangeswasintensifiedaftereasingregulation
THEEXCHANGEFEES(TRADINGANDPOSTTRADING)AREPAIDBYTHEFINALINVESTOR
DifferentlyfromUSAandEurope,thefinalinvestorsistheonewhopaystheexchangefees
Brokerscouldntincreasetheirshareintheallintradingcostpieincaseofreductionontheexchangefees
STOCKSTRADINGALLINCOSTINBVMFISCOMPETITIVE
Comparingonlythetradingfeesamongexchangesismisleading.BVMFprovideshigherportionofservicesthanthe
peers
Despitethemisleadingperception,all
Despite the misleading perception allin
incostinBVMFiscompetitivecomparedtoothermarkets
cost in BVMF is competitive compared to other markets
ITINFRASTRUCTUREMOVINGTOSTATEOFTHEART
There is no gap of IT infrastructure
ThereisnogapofITinfrastructure
IncreasingparticipationofHFTviaColocation(movingtosubmillisecondlatency)
RECENT BM&FBOVESPA INITIATIVES (REBALANCING OF FEES STRUCTURE)
RECENTBM&FBOVESPAINITIATIVES(REBALANCINGOFFEESSTRUCTURE)
Shiftbetweentradingandposttradingfees
16

PanelsponsoredbyCVM
Mainpoints

OnJune29,CVMsponsoredadiscussionwithstakeholders
Regulator:thestudyshowsthatcompetitioninexchangeindustryisnoturgent
Participantsview
9Regulator:marketintegrityandtransparencyarepriorities
9Brokers:mostofthemhavedoubtsaboutthebenefitsandshowedconcernsrelatedtocostrising
g
forthemandrisksforthemarket
9Investors:ingeneralhaveaperceptionthatpricesareinlinewithinternationalbenchmarksandare
concernedwithmarketintegrity
9Infrastructureproviders(exchanges):nonconsensusregardingthenecessityofopeningtheclearing
houseornotinordertocreatetheconditionsforcompetition
BVMFsmainconsiderations:
9UnderstatesregulatoryandIT/infrastructurecostforbrokers
9Disregardsimplicitcostsofliquidityfragmentationanddoesnotassessqualitativelytheprice
formationimpacts
9ComparesinadequatelytheothermarketcostswhenitdoesnotusetheAllincost
9Marketsizeisnotbigenoughtoembracenewexchanges
g
g
g
9Recognizestheimportanceofclearinghousesintegration
17

EquityMarketSettlementStructure
BrazilComparedtoUSA
BRAZIL

USA

(Allthetradesmustbematchedonan
exchangeenvironment)

(Brokerscaninternalizeorders)
TradingVenues

Trading

BVMF

BVMF

DTCC

Brokers
AandB

Brokers
AandB
Broker
A

Post trading
Posttrading
Clearing(CCP)
Settlement
CentralDepository

Investors

Investors

Investors

Broker
B

Investors

100%verticallyintegrated:clearing,settlement and
centraldepositoryatthebeneficialownerlevel

DTCCdoestheclearing,settlement andcentral
depositoryofsecuritiesatthebrokerslevel

Brokerscontroltheirclientsportfoliosandsettle
positionsthroughBVMFsinfrastructure (this
impactstheposttradefeeschargedbyBVMF)

Eachbroker(primebroker)hasitsownstructureto
controltheirclientsportfoliosandsettlepositions
(thisimpact theprimebrokerscosts)

18

BusinessModel
ListedExchangeBusinessModel
DiversifiedandIntegrated

DiversifiedbutNotIntegrated*

IntegratedDerivatives

*Donotprovideposttradingservicesfortheequitymarket

MarketCapitalization(US$billions)andEBITDAMargin(%)
Source:Bloomberg

Updateduntil:01/31/2013
p
/ /

77.9%
65.5%

61.6%

76.9%

69.7%

59.4%

42.3%

21.8

HKEx

19.3

CME

13.9
BVMF

12.8
Deutsche
Boerse

Diversified andintegrated

*12mths to30June2012.

72.0%

62.2%

58.6%

49.1%

47.6%

10.1

8.4

6.7

6.4

5.2

4.7

2.9

ICE

Nyse
Euronext

SGX

ASX*

LSE

Nasdaq

TMX

DerivativesDiversified butnotintegrated

2.3
BME

EBITDAMargin

19

BrazilianMarketRegulatoryFramework
Legalrequirements:resilience,transparence,clearrules.
Brokers&
investors

Regulationprohibits internalizationoforders,darkpools
andATS/MTFs,stockstradinginbothexchangeandOTC
simultaneously
Settlementandclearingofstockstradingmustbedone
through a CCP
throughaCCP
Settlementandclearingatthebeneficialownerlevel
maketheBrazilianmarketsaferandmoreresilient

Trading

Undertheregulationinplace,potentialcompetitors
wouldbeobligedtoprovidethesameintegrated
solution, with the same rules and transparency
solution,withthesamerulesandtransparency
Thefinalinvestorpaystheexchangefee

PosTrading

g
g
g
Otherexchangeshavebeenseekingintegratedmodels
(selfclearingmodels)
Nakedaccessisnotallowed
Nakedshortsellingisnotpossible
20

Braziliansstocktradingbreakdown
EndofCPMF
(Financial
TransactionTax)

NovoMercado
Launching
(Dec.2000)

EndofIOFTax(2%)for
foreigninvestors
(Dec.2011)

SarbanesOxleyAct
(Jul.2002)

J 13
Jan13
25.4%

33.2%
7 8%
7.8%

36.0%

OtherUSAVenues BrazilianADRs
BM&FBOVESPA companieswithADRs

NYSE BrazilianADRs
BM&FBOVESPA(exceptcompanieswithADRs)

Jan13

2
Dec12

Oct12

Nov12

Sep12

Aug12

Jul12

2
Jun12

May12

Apr12

2
Mar12

Feb12

Jan12

Dec11

Nov11

Oct11

Sep11

Jul11

Aug11

Jun11

May11

2011

Apr11

2010
0

2009
9

2008
8

2007
7

2006
6

2005
5

2004
4

2003
3

2
2002

2001

2000
0

1999
9

1998
8

1997
7

1996
6

30.8%

66.8%

Source:Bloomberg(inUSD
tradedvalueof35companies
withADRsprograms)

Public Offerings in Number of Companies*

PublicOfferingsinNumberofCompanies*
IPOs
Followons
Total

2001

14
14
14

2002
1
5
6
6

2003

8
8
8

2004
7
8
15
15

2005
9
10
19
19

2006
26
16
42
42

2007
64
12
76
76

2008
4
8
12
12

2009
6
18
24
24

2010
11
11
22
22

DualListings
*Updateduntil02/08/2013.

2011
11
11
22
22

2012
3
9
12
12

2013
1
1

Total
143
131
272
272

5
21

OPERATIONALHIGHLIGHTS

22

BOVESPASegment:operationalhighlights
Average Daily Traded Value ADTV(BRLbillions)
AverageDailyTradedValue
ADTV (BRL billions)

4.9 5.5 5.3

6.5 6.5 7.3

8.3
6.3

7.3

7.0

7.4

8.2

7.2

6.0

8.4

6.7

6.6

7.9

7.3

1.2 1.6 2.4

2004

2005

2006

2007

2008

2009

2010

2011

2012

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

Averageannualmarketcap(R$trillion)

TurnoverVelocity**(12monthsaverage)
66.6%

2.54
2.33 2.37 2.42
1.98 2.03

63.8%

1.83

1.31
0.72

63.2%
56.4%

70.3% 71.0%
64.2%

30.8%

36.8% 37.6%38.7%

42.3%

0.94

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013*

29.4%

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

*Updateduntil01/31/2013.**Relationofthetradingvalueinthecashmarketandthemarketcapoftheexchange.

23

BOVESPASegment:capitalraisingactivity
PublicOfferings(BRLbillions)
Updateduntil01/31/2013.

FollowOn

74.4

70.1

11.2

IPO

46.0
30.4

8.8
4.5 4.3

2004

13.9

55 6
55.6

5.4
8.5

15.4
15.1

14.5

2005

2006

2007

34 3
34.3
7.5

23.8

26.8

22.2

2008

2009

63.2

2010*

18.0

13.2

7.2
10.8

3.9

2011

2012

9.3

0.7

0.7

2013

Pipeline:alreadyannouncedtothemarket
Thereare4offeringsinthepipeline:
Th
4 ff i
i th i li
IPO(4):AutoBrasil Participaes;Cia.EstadualdeguasEsgotos CEDAE;Senior Solution;Alupar Investimentos

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

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

24

BOVESPASegment
Potentialtoincreasethenumberoflistedcompanies
Market Capitalization to GDP (%)*
MarketCapitalizationtoGDP(%)*
2009

177%
174%

138%
129%

136%

137%
126%

121%

119%
109% 109%
104%

110%

129%
107%
100%
87%
67%

Canada

Chile

USA

100%

96%
89%

Singapore

2011

HongKong: 438%481%365%

158%
129%

2010

Korea

Australia

75% 76%

75%
60%

Japan

87%

80%

72% 72%
57%

55%

France

India

50%

Brazil

49%

UK

Market Capitalization by Economic Sector

MarketCapitalizationbyEconomicSector

46%

China

39%

44%
35%

Mexico
*Source:WorldBank

Dec05

Dec11

15.7%

15.2%
22.4%

26 4%
26.4%
14.1%

21.6%

11.5%
1.8%

10.4%

4.7%
16.2%
6.8%

8.6%
11.1%

0.6%

0.3%
3.9%
%

2.5%
3.6%

2 6%
2.6%

Oil,GasandBiofuels

BasicMaterials

CapitalGoodsandServices

ConstructionandTransportation

ConsumerNonCyclical

ConsumerCyclical

Information Technology

Telecommunications

PublicUtilities

Financial

25

BM&FSegment:operationalhighlights
Average Daily Traded Volume ADTV(Thousandsofcontracts)
AverageDailyTradedVolume
ADTV (Thousands of contracts)

3,518
2,899
2,505 2,701

805 852
187
86
110
422

109
74
168
501

1,167
124
68
266
711

1,740 1,573 1,521

167
112
473

988

162
88
535

150
80
447

789

843

191
89
541

285
123
496

2,615 2,497
,

336
336
143
494

315
123
541

1.684 1.797 1.926

1,636 1,452

200420052006200720082009201020112012
Jun05
Jun05 Jun05 Jun05 Jun05 Jul05 Jul05 Jul05 Jul05

BRLInt.Rate(Thousands)

334
166
545

2,994
285
285
123
524

2,061

308
205
509
509

3,904
385
245
593

2,590
350
158
520

2,497 2,681
1,561

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

322
322
340 2,410
340
362
123
327

331
99
476

113
547

1,866 1,723 1,710 2,199 1,747

1,856

106
485

345
137
425

355
111
451

290
84
474
1,561

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

FX(Thousands)

Index(Thousands)

Others(Thousands)

R t
RateperContract
C t t RPC(BRL)
RPC (BRL)
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

FX rates
FXrates

2 244 1.859
2.244
1 859 2.065
2 065 2.161
2 161 1.928
1 928 1.894
1 894 2.205
2 205

2 106 1.929
2.106
1 929 1.876
1 876 1.991
1 991 2.015
2 015 2.237
2 237 2.325
2 325

2 506
2.506

2 370
2.370

2 453
2.453

2.368
2 368

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

0.130

0.130

0.122

0.113

0.116

0.111
0.110 0.109 0.112
0.131

0.107

0.112

0.120

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
Updateduntil01/31/2013.

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

2 453
2.453

2 481
2.481

26

InterestRateinBRLContracts
Structuralchangesbehindthegrowthinvolumes
BRLINT.RATE:ADVPERMATURITY(MILLIONSOFCONTRACTS)
Growthininterestratecontracts
with longer maturity
withlongermaturity

1.81

1.66

1.77

CAGR:+3%

1.35

CAGR:+32%
0.76

0.72

0 47
0.47

0 51
0.51

0.91

0.93

0.77

0 87
0.87

CAGR:21%
0.57

0.28

0.38

2008

2009

2010
1st4thMaturity

2011

5thMaturity

Dec'12:
BRL850.9

Dec'12:
BRL 789.3 bn

Jan'05:
BRL 151.4 bn

Jan'05:
BRL180.0

Jan06

Total

PublicDebt/FixedRate inBRLbillions

FixedRateCredit inBRLbillions

Jan05

2012

Jan07

Source:Brazilian CentralBank.

Jan08

Jan09

Jan10

Jan11

Jan12

Jan05 Jan06 Jan07 Jan08 Jan09 Jan10 Jan11 Jan12

27

HighFrequencyTrading(HFT)
BM&FSegment:HFT(ADTVinthousandsofcontracts)andmkt.share
4 2% 3.9% 3.6%
3.5% 4.2%

8.9% 9.1%
7.5% 7.3% 8.7% 8.5% 6.6% 6.9%
7.5% 6.4% 7.2% 6.3%
6.7% 5.4%
6.7% 5.6%
5.9% 5.8%
5.8%
5 4%
5.2%
5
2%
5 0%
5.0%

528

481 474
88

274 239 300

222 233 239
162
49
49
179
179
45
45
42
29
65
68

51
65
90

50
71
93

49
82
90

118

101

102

92

419

66

61

155

203

219

Mini

343

153
153

50
124

177

142

126

113

417

FX

268 288
42
85

41
41
88

120

131

Equities

79
50

191

442

403

73

49

59

141

159

150
150

146

128

163

Other

144
225

365 347 358

317 283 339 304
62
63
56
116
116

89
89

71
71

56
61
61

55
55
31

186

202

223

201

197

58
53
53

46
55
55

227

204

237
37
44
156

%overallvolume

BovespaSegment:HFT(ADTVinBRLmillion)andmkt.share
5.7% 6.6% 5.9% 5.9%

272

206
267

346

258

352

746

785

140
261

210
254

344

321

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%

1,683

996

963
730

8.7% 7.6% 8.6%

192
293
511

899

974

152
253

151
262

495

205

1,296

380
380

165
311

1,099

561

ADTV(Foreigners)

821

1,460
164
281

1,016

1,367

1,339

1,366

,
,
1 088 372 1,160
1,088
166 1,145
166
296
259 110
306
210 303
913

826

ADTV(Individuals)

785

995

854

1,526
1,517 1,489
1,363 1,344
1,268 1,332 245
230
387 420
387
420

1,517 1,473
278

227

263

265

1,243
1,070 1,238
1,041 1,069 1,016

ADTV(Institutionals)

366

269

212

243

246

285

785

831

884

783

%ofoverallmarket

28

FINANCIALHIGHLIGHTS

29

Highlights3Q12vs.3Q11
Growthinallbusinesslinesandcostsundercontrol

FINANCIAL HIGHLIGHTS

OPERATINGHIGHLIGHTS

9 GrossRevenue: R$581.3million,+6.2%

9 Bovespa Segment:

Bovespa
Bo espa Seg.:R$263.4million,+5.9%
Seg R$263 4 million +5 9%

ADTV:+8.7%
ADTV +8 7%

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

Margin: flat

Otherrevenues:R$98.7million,+5.8%

9 BM&FSegment:
RPC:+14.7%
RPC: +14 7%

9 NetRevenue: R$521.6million,+5.7%

ADV:4.0%
9 Highgrowthproducts:

j
p
R$136.0 million,0.2%
,
9 AdjustedExpenses:

ETFs:+90.2%ADTV
Tesouro Direto:+45.6%AUM

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

FII:stronggrowthinmarketcapitalizationand
numberofinvestors

9 EBITDA:R$375.6million,+8.1%

LCA:consistentincreaseofregistervolume
f
l

EBITDAMargin: 72.0%
9 Adj.NetIncome: R$400.6million,+0.3%,
9 Adj.EPS: R$0.208,+1.7%
9 Payout:
P
t R$221.2millionindividendsandintereston
R$221 2 illi i di id d
di t
t
capital,80%ofGAAPnetincomein3Q12
1

MAINPROJECTSFOR4Q12
9 Crosslisting:listingofS&P500minicontractsatBVMF
l
l
f
andIbovespa atCME
9 PUMATradingSystem:equitiesmodule
9 RegistrationPlatforms
g

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 of
goodwill 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 and
recoverable taxes paid overseas to be compensated.
30

FinancialHighlights
Focusoncashgenerationandshareholdersreturn
OPERATING CASHGENERATION
(R$million)

CASHANDFINANCIALINVESTMENTS
(R$million)

3Q12

+6.9%

340.5

364.1

2Q12
1Q12
4Q11
3Q11

3Q11

3Q12

RETURNINGCAPITALTOSHAREHOLDERS

1,166
1,443
1 207
1,207
1,551
1,270
,

343 390

2,100

340 363
383 354
383
354

1,979
1 714
1,714
1,582

380 270
468 284

Marketparticipantscashcollateralandothers*
Subsidiaries**

3,999

,
1,487

4,125
3 658
3,658
3,782
,
3,508

Restrictedfunds
Availablefunds

CAPEXBUDGETFOR2012

9 Payout: R$221.2million,R$131.2millionindividends
and R$90 0 million in interest on capital 80% of
andR$90.0millionininterestoncapital,80%
of
GAAPnetincomein3Q12.

9Budgetrange:R$230260million

9 Sharebuybackprogram:upto60millionshares
authorizedforrepurchaseuntilJune28,2013

9Actual9M12:R$124.2million

9Actual3Q12:R$52.3million

*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

RevenueBreakdownin3Q12
Diversifiedrevenuesourcesasadifferential
REVENUEBREAKDOWN(3Q12)

39.3%:CashEquities
9.2%:Trading
30.1%:Posttrading

9 2%
9.2%
18.5%

5.2%:DerivativesonStocksandIndices
1.4%:Trading
3.8%:Posttrading

Gross Revenue:
R$581.3 million

37.0%:Financial/CommoditiesDerivatives

30.1%

14.3%:Trading
22.7%:Posttrading

22.7%
18.5%:Otherrevenues

1.4%
3.8%
14.3%

4.5%:Depository,Custodyandbackoffice
3 2%: Securities Lending
3.2%:SecuritiesLending
3.1%:Vendors
2.2%:TradingAccess(brokers)
1.9%:Listing
3 6%: Others
3.6%:Others

32

Expensesin3Q12
Focusoncostcontrolandhigheroperatingefficiency
TOTALEXPENSESBREAKDOWN(3Q12)

ADJUSTEDEXPENSES
(R$million)

-0.2%

Other

163.9

15%

Marketing

136.3

2%
Third
Party

8%

Expenses:
R$174.8MM

47%

125.4

127.9

136.0

1Q12

2Q12

3Q12

Personnel

14%
Depr./
Amort.

14%

3Q11

4Q11

Data. Proc.

ADJUSTEDEXPENSES:2Q12vs.3Q12

ADJUSTEDEXPENSES:3Q11vs.3Q12
(R$million)

(R$million)
2.4

1.5
(0.7)

4.8

0.1
(1.1)

2.5

(2.5)

1.7

0.1
(0.8)

(0.3)

3Q11Adj. Personnel Dataproc. ThirdParty Commun. Marketing

Exp.

136.0

136.0

136.3

127.9

Others

3Q12Adj.
Exp.

2Q12Adj. Personnel Dataproc. ThirdParty Commun. Marketing

Exp.

Others

3Q12Adj.
Exp.

33

ADJUSTEDOPEXBUDGET
2013Budget:R$560580million,thesamerangeof2012
Focusoncostcontrol: in2013,inflationarygrowthwillbeneutralizedbyhigher
,
yg
y g
efficiency

ExpensesCAGR(201013):
1.6%pa

<

InflationCAGR(20102013)
5.8%pa

560580

544

585

2010A

2011A

(inR$millions)

560580

2013budgetin
the same range
of 2012

2012E

2013E

Adjusted bydepreciation,stockoptionprogram,taxondividendsfromCMEGroupandprovisions.
Expenses growth considering the midpoint budgetfor2013(R$570million)and estimated IPCAfrom BCBFocus Bulletin (November 30,2012).
34

CAPEXBUDGET
2013Budget:R$260290million
2014 Budget: R$170200 million
2014Budget:R$170200million
InvestmentsclosetoR$1.2billionbetween2010and2014inprojectsbelow:
Capexreductionstartingfrom2014
230 260
230260

(inR$millions)

260290
170200

268

2010A

204
2011A

2012E

2013E

2014E

3Q101Q13:PUMATradingSystem
20112014:Clearinghouses integration /CORE*
4Q124Q14:DataCenter
2Q123Q13:OTC
20102014:Improvementsininfrastructure
*IPN/COREimplementationrequirestheauthorizationoftheregulators.

35

Appendix

36
36

FullyintegratedBusinessModel
Diversifiedsourcesofrevenues
Servicesforissuers,brokersand
Services
for issuers brokers and
commoditiestrading

Trading,ClearingandDepositoryActivities

Listingg
(stocks,bonds,funds,
assetbackedsecurities,
Amongothers)

TTrading
di
(stocks,derivatives,corporateandgovernment
Bonds,funds,spotUSDollar,amongothers)

Commodities
Certification

CentralCounterparty(CCP)
ClearingandSettlement
(forallproducts)

Others Services
Custodyy
(servicesprovidedforfunds
andothermarket
participants)
MarketData

IndicesLicensing
TradingAccess
((Brokers))

CentralDepository
((stocksandcorporatebonds)
p
)

SecuritiesLendingg
(stocksandcorporatebonds)

SoftwareLicensing
(usedbybrokerage
Housesandother
marketparticipants)
OTCDerivatives
(registrationandcollateral
management)

37

HighFrequencyTrading HFT
NewProductsPipeline
Newpricingpolicy(bothsegments)
MainCharacteristics
DifferentiatedfeesbytieronlyfordaytradestransactionsexecutedbyaregisteredHFT
AHFTCommitteecreatedtoapproveandmonitortheHFTs
ThenewpricingpolicywasimplementedinNov10

Bovespa Segment
IntheBovespa Segment,differenttierswerecreatedforindividualsandnonindividualsHFTinvestors
Nonindividuals

Individuals

TradingFee
(bps)

Settlement
Fee (bps)

Total

Up to 20 (inclusive)
Upto20(inclusive)

0.70

1.80

2.50

0.50

1.80

2.30

0.20

1.80

2.00

1.80

From20to50(inclusive)
From50to250
(inclusive)
From250to500
(inclusive)

0.05

1.75

1.80

1.60

Above 500

0.05

1.55

1.60

TradingFee
(bps)

Settlement
Fee (bps)

Total

ADTVtier (BRLmillions)

U t 4 (i l i )
Upto4(inclusive)

0 70
0.70

1 80
1.80

2 50
2.50

From4to12.5(inclusive)
From12.5to25
(inclusive)

0.50

1.80

2.30

0.20

1.80

2.00

From25to50(inclusive)

0.05

1.75

Above 50

0.05

1.55

ADTVtier (BRLmillions)

BM&FSegment
IntheBM&FSegment,the70%flatdiscountwasreplacedbyavolumetieredbaseddiscount,onlyfordaytrades,
dividedintotradingandregistrationfees
38

BOVESPASegment:foreigninvestmentflow

MonthlyNetFlowofForeignInvestments*(inBRLbillions)

10.0
7.2

6.5

0.3

(1.5)

3.4

2.1
1.7
0.70.4

1.5

(1.6)

5.1 5.0

44
4.4

3.73.5

(0.6)

1.9 2.2
0.3

(1.3)

2.9
0.71.1

0.81.0

(0.4)(0.2)

(1.1)
(1.3)
(2.4)

0.3
(2.3)

0.8

(1.2)
(4.2)

*Includesregulartradesandpublicoffering.UpdateduntilDec.31,2012.

39

Operationalhighlights:investorsparticipationinTotalVolume
BM&FSegment(InvestorsParticipationinTotalVolume)
7%

7%

9%

8%

8%

4%

4%

5%

4%

4%

4%

4%

4%

4%

24%

25%

23%

23%

24%

30%

33%

34%

36%

34%

36%

34%

37%

38%

12%

15%

17%

19%

20%

22%

23%

25%

25%

27%

23%

28%

25%

23%

45%

42%

38%

34%

33%

34%

36%

33%

33%

33%

2009

2010

2011

2012

Aug12

Sep12

Oct12

Nov12

Dec12

Jan13

56%

2005

51%

2006

49%

2007

I di id l
Individuals

48%

2008

I i i lI
InstitutionalInvestors

F i I
ForeignInvestors

Fi
FinancialInstitutions
i lI i i

C
Companies
i

C
CentralBank
lB k

Bovespa Segment(InvestorsParticipationinTotalValue)

12%

10%

10%

8%

7%

8%

9%

8%

8%

7%

9%

8%

9%

8%

33%

36%

35%

35%

34%

30%

35%

40%

40%

41%

42%

42%

40%

40%

27%

27%

30%

27%

26%

33%

33%

32%

32%

31%

32%

32%

35%

35%

25%

25%

23%

27%

31%

26%

21%

18%

19%

17%

17%

17%

15%

17%

2005

2006

2007

2008

2009

2010

2011

2012

Aug12

Sep12

Oct12

Nov12

Dec12

Jan13

Individuals

InstitutionalInvestors

ForeignInvestors

FinancialInstitutions

Companies

Others
40

Investment Funds
AUMEvolution(inBRLbillions)
2,189
Equities
FixedIncome

1,787
1 703 1,787
1,703
1,513
1,301

657

861

899

10%

11%

2003

2004

1,070

15%

1,375

22%

14%

2007

2008

18%

18%

2009

2010

1,925

14%

15%

11%

11%

2002

2005

2006

2011

2012

PercentofEquityFundAssets
Brazil

W ld id
Worldwide

Equity
funds
40%

Source:ANBlMA (Jul12)andInvestmentCompanyInstitute ICI(2Q12).

Equity
funds
14%

41

3Q12EARNINGS

42

Bovespa Segment
ADTVgrowthandflatmargins
OPERATINGHIGHLIGHTS
ADTVandmargininbasispoints

93Q12 3Q11
93Q12x3Q11:
5.71

5.58

5.91

5.50

5.73

6.6

6.4

7.2

7.6

7.2

2Q12
Margin(bps)

3Q12

3Q11

4Q11
1Q12
ADTV(R$billions)

Averagemarketcap andturnovervelocity
69.3%

66.6%

66.2%

75.0%

+8.7%ADTV=>9.8%growthofcashequities
ADTV
foreign
foreigninvestorsADTVwentup26.2%
investors ADTV went up 26.2% =>>foreign
foreign
HFTsADTVrose24.9%
alltimehighmonthlyADTVofR$8.4billionin
Sep12
recordof1.5milliontradesin9/14
record of 1 5 million trades in 9/14

70.4%

stabletradingmarginsat5.7bps
higherturnovervelocityof70.4%

22
2.2

22
2.2

25
2.5

24
2.4

24
2.4

3Q11

4Q11

1Q12

2Q12

3Q12

6.6%growthintheaveragemarketcapitalization
6 6% growth in the average market capitalization

AverageStockMarketCapitalization(BRLtrillions)

TurnoverVelocity(%)

HFTs:ADTV(R$millions)
( $
) andvolumeparticipation(%)
p
p
( )
10.3%

10.3%

8.5%

1,329.1

1,311.9

174.6
319.3

146.0
249.2

835.1

916.7

873.9

3Q11

4Q11

1Q12

Foreigners

Individuals

1,199.1

325.3

Institutionals

9.4%

9.8%

1,454.1
0,2
268.3

1,368.9

1,185.6

1,043.5

2Q12

3Q12

73,8
251.6

%ofoverallmarket

93Q12x2Q12:
ADTV
ADTV6.1%downcomparedtotheprevious
6.1% down compared to the previous
recordofR$7.6billionin2Q12
margins4.2%higher=>lowerparticipationof
institutionalinvestorsanddaytrades,whichpay
lower fee rates
lowerfeerates

43

BM&FSegment
AverageRPCgrowth
OPERATINGHIGHLIGHTS
ADV(millionsofcontracts)andRPC(R$)
1.106

1.157

1.172

2.5

2.7

2.8

3.4
0.3
0.5

0.3
0.5
15
1.5

0.3
0.5
1.7

2.3

0.4
0.5
1.8

3Q11

4Q11

1Q12

2Q12

3Q12

FX

Indices

Others

+14.7%RPC

2.7

0.3
0.5
1.8

Int.RateBRL

93Q 2 3Q
93Q12x3Q11:

1 269
1.269
1.133

=>depreciationofR$/US$rateimpactingRPC
ofFX(+36.2%)andUSDint.rates(+25.3%)
of
FX (+36 2%) and USD int rates (+25 3%)
contracts;
=>10.1%increaseinRPCforBRLint.ratedueto
concentrationoftradinginlongermaturities
contracts (4th and 5th)
contracts(4thand5th)

RPC(BRL)

BRLInt.Rates volumesbymaturities(%)
57%
8%
16%
15%

65%

4%
7%
7%
3%
2Q12

3Q11
1stMaturity

68%

86%

79%

2ndMaturity

4%

3rdMaturity

2%
4thMaturity

22%
6%
3Q12

4.0%ADV=>dropinADVofBRLint.rate(
2.4%),indices(17.3%)andFX(13.8%)

90%

LowerparticipationofHFTs,duemainlytoa
reduction in ADV of FX and indices contracts
reductioninADVofFXandindicescontracts

2%

5thMaturity

93Q12x2Q12:

HFTs:ADV(thd contracts)andvolumeparticipation(%)
7.8%
419.5

7.2%

24.4

335.2

178.7

24.8
139.6
139.6

148.3

8.0%
412.2
101.4

6.3%
442.5

6.7%

9.8

342.2

224.0

0.9

134.8
134.8

500,0

209 1
209.1

68.2

119.9
50.9

129.5
46.5

140.0
68.7

73.8
58.3

3Q11

4Q11

1Q12

2Q12

3Q12

Equities

FX

Minicontracts

Others

%inOverallVolume

400,0
300,0
200,0

+12.0%RPC=>reflectingthedepreciationof
12 0% RPC
fl ti th d
i ti
f
R$/US$rate(6.5%)andreductionofdaytrade
operationsofBRLint.rates
19.8%ADVcomparedtothepreviousrecordof
R$3 4 illi
R$3.4millioncontractsin2Q12
t t i 2Q12

100,0

44

Netincome
Netincomeimpactedbyafallinfinancialincome
ADJUSTEDNETINCOME

EBITDA

Adjustednetincomedidnotfullycapturetherevenuegrowthduetoaplungein
interestincome
(R$ million)

EBITDAgrowthinlinewithoperatingincome
growth
(R$ million)

27.9
14.1

(3.9)

347.5

+8.1%

375.6

(37 1)
(37.1)
400.6

399.6

3Q11
N t
Netrevenues
E
Expenses*
*
Adjustednet
income

Financial
Fi
i l
Income

I
Incometax
t

3Q12
Adjustednet
income

FinancialIncome:3Q12vs.3Q11
9 R$45.5million, down44.9%
,
y
FinancialRevenue:R$67.6million,down33.7%duemainly
tolowerinterestrates

3Q11

3Q12

OPERATING INCOME
OPERATINGINCOME
(R$ million)

+7.0%

324 1
324.1

346 8
346.8

3Q11

3Q12

FinancialExpenses:R$22.1million,a14.0%growthdueto
depreciationof24.0%inR$/US$

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

45

FinalRemarks
BVMFbetterpreparedtocaptureopportunities

MAINTAININGMARKETINTEGRITY

OPPORTUNITIESINBRAZILIANMARKETS

Newrealityof lowerinterestrates
Capitalmarketssettobecomeamore
importantalternativeforlongterm
funding

Control,governance,transparencyand
market security
marketsecurity
StrengtheningtheintegrityofBrazilian
capitalmarketstargetinggrowth

WHATISBVMFDOING?

Investingintensivelyintradingandposttradingplatforms
l
d
d
d
l f
Increasingfocusoncustomers(brokersandinvestors):revisitingthefeestructure,investing
inproductdevelopment
Stringentcostcontrols
Stringent cost controls
EnsuringmarketintegritybyestablishingefficientcontrolsandstrengtheningBSM

WHATISALREADYHAPPENING!

Operatingleveragematerialization
Revenuegrowth,despitesloweconomicgrowthscenarioandinternationalinstability
R
th d it l
i
th
i
di t
ti
l i t bilit
Highpotentialproductshavebeenshowingstronggrowth
46