bme financial results 1h11

January - June 2011

The information contained herein does not constitute an offer of securities in the United States. Offers and sales of securities in The United States may not be made absent made registration under the U.S. Securities Act of 1933, as amended, or an applicable exemption therefrom. This document does not solicit money, securities or any other type of consideration, and if any money, securities or other type of consideration is sent in response hereto, it will not be accepted.

First Half-Year 2011

Net earnings for the first half of 2011 amounted to €77.9 million. ■

After excluding extraordinary income and expenses incurred, adjusted profit for 1H11 -is 3.8% lower than in the same period in 2010, and a 10.0% improve on 2H10 adjusted net results. Including the effect of extraordinary items, net earnings in the first half of 2011 were 7.7% less than those obtained in 1H10

Revenue in 1H11 decreased 6.7% with respect to 2010. After adjustment for extraor- -dinary income obtained, revenue decreased 3.3%

Operating costs amounted to €49.6 million in 1H11, which represents a yoy decrease -of 7.8%. After adjustment for extraordinary items, operating costs decreases 0.4%

The number of trades in Equity increased by 11.5% in 1H11, whereas turnover decreased ■by 8.1%. Market capitalisation at the end of the six-month period was 17.5% higher that that recorded in the previous year.

The trend in stock futures trading in Derivatives was maintained with a 103.9% increase ■in the number of contracts in 1H11. The number of contracts in other derivative products decreased.

At the end of the first half of 2011, €18,684 million in flows was channelled through the ■Exchange, in the form of new shares and capital increases, a yoy increase of 156.0%. The admissions to listing on the market rose with the listing of DIA on 5 July. Bankia and Banca Cívica were subsequently admitted for listing on 20 and 21 July, respectively.

The efficiency ratio for the year to date is 30.7% versus 31.0% in 1H10, an improvement ■of three tenths. This outperforms more than 15 points difference with the sector average.

Return on equity (ROE) was 35.1% YTD compared with 37.0% a year earlier. This repre- ■sents a difference of more than 20 points with the sector average.

Net earnings of Bolsas y Mercados Españoles (BME) for the first half of 2011 amounted to €77.9 million, down 7.7% yoy. After extraordinary items recorded in both years are stripped out, the aggre-gate figure was 3.8% lower than that of the previous year, and 10.0% above figure of 2H10. Net earnings dropped 24.6% yoy (19.4% excluding extraordinary items) reaching €36.5 million in the second quarter of 2011.

Aggregate revenue in the six-month period totalling €161.7 million implied a 6.7% decrease with respect to the previous year. Excluding extraordinary items,

43.7

32.2 37.1

41.5

35.3

4.7

Mill.€

48.4

Profit evolution

BME: Profit attributable to The Group(Quarterly series)

0.537.6

1.2

Profit evolution


Profit evolution


36.5

2Q10 3Q10 4Q10 1Q11 2Q11

BOLSAS Y MERCADOS ESPAÑOLES, SOCIEDAD HOLDING DE MERCADOS Y SISTEMAS FINANCIEROS, S.A. AND SUBSIDIARIES COMPRISING THE BOLSAS Y MERCADOS ESPAÑOLES GROUPCONSOLIDATED PROFIT AND LOSS ACCOUNTS

2Q11 2Q10 ∆ 1H11 1H10 ∆

(Th.Eur.) (Th.Eur.) % (Th.Eur.) (Th.Eur.) %

Operating Income 76,832 95,865 -19.9% 161,742 173,414 -6.7%

Ordinary revenue on the provision of services 74,779 87,115 -14.2% 158,821 163,517 -2.9%

Other operating income 1,759 8,012 -78.0% 2,259 8,373 -73.0%

Capitalisation of development expenses 294 738 -60.2% 662 1,524 -56.6%

Operating Expenses (25,105) (29,344) -14.4% (49,627) (53,843) -7.8%

Staff costs (16,010) (18,786) -14.8% (31,072) (33,608) -7.5%

Operating and external expenses (8,953) (10,319) -13.2% (18,272) (19,853) -8.0%

Taxes and levies (142) (239) -40.6% (283) (382) -25.9%

Income before interest, taxes, net impairment losses

and depreciation 51,727 66,521 -22.2% 112,115 119,571 -6.2%

Depreciation and amortization charges (1,904) (1,989) -4.3% (3,839) (4,030) -4.7%

Net impairment losses (Fixed assets) (3) (3) 0.0% (3) (3) 0.0%

Income before interest and taxes 49,820 64,529 -22.8% 108,273 115,538 -6.3%

Net financial income 1,452 703 106.5% 2,158 1,019 111.8%

Share of profit (loss) of associates 62 (120) -151.7% (92) (233) -60.5%

Income before taxes 51,334 65,112 -21.2% 110,339 116,324 -5.1%

Corporate income tax (14,868) (16,738) -11.2% (32,393) (31,882) 1.6%

Profit attributable to the Group 36,466 48,374 -24.6% 77,946 84,442 -7.7%

revenue was 3.3% less than the previous year. Revenue amounted to €76.8 million in 2Q11, a yoy decrease of 19.9% (down 14.5% after adjusting for extraordinary income

Operating costs totalled €49.6 million in the first half of the year, down 7.8% yoy. Operating costs amounted to €25.1 million in 2Q11, down 14.4% yoy. Excluding the €4.0 million in extraordinary costs incurred in 2Q10, operating costs decreased by 0.4% during this six-month period and 0.9% in the quarter.

EBITDA amounted to €112.1 million YTD, down 6.2% from 2010 (a 4.5% decline after adjusting for extraordinary items), and dropped 22.2% in 2Q11 (a 19.9% drop excluding extraordinary items) to €51.7 million.

Note: Balances obtained from the audited consolidated intermediate financial statements

4 Bolsas y Mercados Españoles - Business performance -Interim Report (January - June 2011)

Financial Statements

40.8%

28.1%

33.2%35.6%

31.4%

% R

OE

Consolidated ROE ratio evolution

BME: Return on Equity(Quarterly series)

2Q10 3Q10 4Q10 1Q11 2Q11

30.6%33.4%

31.3%28.9%

32.7%(% E

ffic

ien

cy)

BME efficiency ratio (Quarterly series)

Consolidated efficiency ratio evolution

2Q10 3Q10 4Q10 1Q11 2Q11

Earnings per share 0.44 0.58 -24.6% 0.94 1.01 -7.7%

Efficiency ratio (%) 32.7% 30.6% 30.7% 31.0%

ROE (%) 31.4% 40.8% 35.1% 37.0%

As for the main indicators for tracking financial mana-gement, the efficiency ratios were 30.7% and 32.7% for the six-month period and quarter, respectively, compared with 31.0% and 30.6% in 2010. ROE was 35.1% at the end of the first half of 2011 versus 37.0% in 2010, and it was 31.4% in 2Q11 and 40.8% in 2Q10.

Revenue not linked to volumes amounted to 110% of BME’s cost base at the end of the first half of the year, up six points compared with the end of the first half of 2010.

Bolsas y Mercados Españoles Group(Key Ratios)

2Q11 2Q10 ∆ 1H11 1H10 ∆

Bolsas y Mercados Españoles - Business performance -Interim Report (January - June 2011) 5


In order to apply the same presentation criteria as other European central counterparties, the Group includes in “Current assets – Non-Group current financial assets” and “Current liabilities – Non-Group current financial liabilities”, by the same amounts, fixed-income securities and options in which it acts as central counterparty, and guarantees and deposits received from the market.

This presentation criteria has no impact on income or equity.

BOLSAS Y MERCADOS ESPAÑOLES, SOCIEDAD HOLDING DE MERCADOS Y SISTEMAS FINANCIEROS, S.A. AND SUBSIDIARIES COMPRISING THE BOLSAS Y MERCADOS ESPAÑOLES GROUP

as of 30/06/2011

as of30/06/2010

∆

CONSOLIDATED BALANCE SHEETS AT CLOSING DATES (Th.Eur.) (Th.Eur.) %

NON-CURRENT ASSETS 169,642 170,316 -0.4%Goodwill 82,190 80,619 1.9%Other intangible assets 9,930 9,780 1.5%Property, plant and equipment 48,537 51,736 -6.2%Non-current financial assets 23,511 21,523 9.2%Deferred taxes 5,474 6,658 -17.8% CURRENT ASSETS 35,344,511 14,507,078 143.6%Non-Group current financial assets 34,914,981 14,068,026 148.2%Other current financial assets Trade and other receivables 24,049 21,430 12.2% Cash and cash equivalents 347,851 358,537 -3.0%Tax assets 54,871 57,044 -3.8%Other current assets 2,759 2,041 35.2% TOTAL ASSETS 35,514,153 14,677,394 142.0% SHAREHOLDERS´ EQUITY 444,474 459,269 -3.2%Share capital 270,078 270,078 0.0%Reserves 101,920 108,813 -6.3%Profit attributable to the Group 77,946 84,442 -7.7%(Treasury shares) (7,661) (7,661) 0.0%Other equity instruments 390 2,510 -84.5%Valuation reserves 1,801 1,087 65.7% NON-CURRENT LIABILITIES 15,313 16,207 -5.5%Provisions 6,534 9,466 -31.0%Provisions for employee benefits 3,538 3,460 2.3%Deferred taxes 4,548 3,270 39.1%Other non-current financial liabilities 693 11 6,200.0% CURRENT LIABILITIES 35,054,366 14,201,918 146.8%Trade and other payables 18,711 16,970 10.3%Non-Group current financial liabilities 34,914,981 14,067,913 148.2%Tax liabilities 112,070 108,128 3.6%Other current liabilities 8,604 8,907 -3.4% TOTAL EQUITY AND LIABILITIES 35,514,153 14,677,394 142.0%




BOLSAS Y MERCADOS ESPAÑOLES, SOCIEDAD HOLDING DE MERCADOS Y SISTEMAS FINANCIEROS, S.A. AND SUBSIDIARIES COMPRISING THE BOLSAS Y MERCADOS ESPAÑOLES GROUP

1H11 1H10 ∆

CONSOLIDATED CASH FLOW STATEMENT (Th.Eur.) (Th.Eur.) %

Note: For the purpose of clear presentation of changes in working capital, inflows of funds from guarantees and deposits received from the market which are invested in current financial assets “Current assets – Non-Group current financial assets” in their entirety have not been included as a change in working capital. Financial instruments of MEFF as a central counterparty and receivables on settlements of options and futures, have not been included either.

Consolidated profit for the year before taxes 110,339 116,324 -5.1%

Corporate income tax (32,393) (31,882) 1.6%

Amortization and provisions 4,491 8,085 -44.5%

Other adjustments to the result (683) (1,096) -37.7%

Changes in working capital-

- Current financial assets (non Group) 83 (40) -307.5%

- Trade and other receivables (557) 506 -210.1%

- Tax assets (13,434) (18,039) -25.5%

- Tax liabilities 23,853 26,148 -8.8%

- Other current assets (2,020) (1,367) 47.8%

- Trade and other payables 1,665 (1,528) -209.0%

- Other current liabilities 8,278 8,635 -4.1%

Changes in non current assets and liabilities (198) (1,400) -85.9%

Net cash flows from operating activities 99,424 104,346 -4.7%

Net cash flows from investing activities (3,055) (1,196) 155.4%

Net cash flows from financing activities (68,301) (68,305) -0.0%

Net increase (decrease) in cash and cash equivalents 28,068 34,845 -19.4%

Cash and cash equivalents at the beginning of period 319,783 323,692 -1.2%

Cash and cash equivalents at the end of period 347,851 358,537 -3.0%




On 28 April 2011 the company held its General Share- ■holders’ Meeting at the Madrid Stock Exchange where the management performance of the Board of Directors was rati-fied and the items included in the agenda for discussion at the meeting were approved.

These resolutions included the approval of the 2010 individual and consolidated Financial Statements and Management Report and the distribution of earnings from 2010 entailing a final payout of €49,967 thousand (a gross of €0.6 per share), which was paid on 6 May 2011. The Annual General Share-holders’ Meeting also approved the payment of an extraor-dinary dividend of €30,980 thousand, equivalent to a gross dividend of €0.372 per share, charged against reserves. This dividend was paid on 13 May 2011.

Highlights

Equity

Turnover (Mill. Eur.) 238,426 299,322 -20.3% 485,889 528,783 -8.1%

Number of trades 10,479,032 11,557,647 -9.3% 23,509,968 21,081,657 11.5%

Number of shares (Million) 38,226 36,963 3.4% 82,847 60,935 36.0%

Market Capitalisation (Mill. Eur.) 1,132,776 963,703 17.5%

Average amount per trade (Euros) 22,753 25,898 -12.1% 20,667 25,083 -17.6%

Clearing & Settlement

Operations settled 10,352,266 11,619,458 -10.9% 21,906,807 21,058,237 4.0%

Turnover settled (billion euros daily avg.) 323.0 320.7 0.7%

Nominal amount registered (billion euros) 1,615.2 1,508.4 7.1%

Listing

Investment Flows channeled through Exchange (Mill. Euros) 2,370 7,085 -66.5% 18,684 7,299 156.0%

AIAF Fixed Income volume admitted (nominal Mill. Euros) 68,290 53,031 28.8% 139,081 109,624 26.9%

Derivatives

Futures (number of contracts)

Index Futures 2,004,751 3,339,100 -40.0% 4,481,659 5,678,390 -21.1%

Stock Futures 8,437,226 3,927,137 114.8% 16,443,265 8,063,445 103.9%

Options (number of contracts)

Index Options 502,239 976,647 -48.6% 989,414 1,782,439 -44.5%

Stock Options 6,164,230 8,904,110 -30.8% 14,532,273 18,725,716 -22.4%

Open interest (number of contracts) 12,646,878 13,623,600 -7.2%

Fixed Income

Turnover (Mill. Eur.) 1,248,159 796,678 56.7% 3,115,643 1,440,086 116.4%

Bolsas y Mercados Españoles(Quaterly Overview)

2Q11 2Q10 ∆ 1H11 1H10 ∆

Dividends payments against results

0.600 49,967 0.600 49,967

Dividends payments against reserves

0.372 30,980 0.372 30,980

Total dividend payments 0.972 80,947 0.972 80,947

1H11 1H10

DividendsEuros

per share

Total (Thousand

Euros)

Euros per

share

Total (Thousand

Euros)

On 28 July 2011, BME informed the Spanish Securities Market Commission (CNMV) of the resolution adopted at the meeting of the Company’s Board of Directors, held on the same date, to pay a first interim dividend charged against 2011 earnings of €0.4 gross per share. This interim dividend will be paid on 9 September 2011.


Quarter Overview

The number of trades executed in equities amounted to ■23.5 million in 1H11, a yoy increase of 11.5%, whereas turno-ver dropped €485.9 billion, 8.1% less than in 1H10. The tur-nover traded in 2Q11 amounted to €238.4 billion, down 20.3% yoy, where May 2010 was a month of record market activity.

The number of operations settled in the first half of 2011 ■climbed 4.0% to 21.9 million, up from 21.1 million in the first half of 2010. The average daily turnover settled in the period was €323.0 billion, up 0.7% yoy.

The settlement, entry and registration of securities and trades in LinkUp Markets, both free of payment and versus payment, were streamlined after Iberclear began trading with the German CSD Clearstream Banking A.G. Frankfurt (CBF) in February. The establishment of a link with the Austrian CSD Oesterrei-chische Kontrollbank AG (OeKB) and Swiss CSD SIX SIS Ltd. (SIS) is expected at the end of 2011.

The processes of registering REGIS-TR members were com-pleted and the financial entities began to register all cross trades between them in interest rate derivatives. The first records were received on 18 July. The second stage, which includes registering currency derivatives and enabling supervi-sors to access the system, is scheduled for the second half of October.

The market capitalisation of companies admitted to listing ■on the markets managed by BME stood at €1.13 trillion at 30 June 2011, up 17.5% with regard to June 2010.

Investment flows channelled through the Exchange in the first half of 2011 amounted to €18.7 billion, an increase of 156.0% over the amounts channelled through new shares and shares admitted for listing in the first half of 2010.

After 5 July the inclusion of companies into the main stock market resumed with the admission to listing of DIA. Bankia and Banca Cívica were subsequently admitted for listing on 20 and 21 July, respectively.

The first capital increase of one of the members of the MAB’s segment of growth companies, Gowex, took place. In the meantime, the admission to listing of Catenon, Lumar, Sec-uoya and Griñó Ecologic, which are the latest companies to request admission, have moved forward.

The total volume of new issues admitted to listing on the AIAF fixed income market in 2Q11 increased 28.8% yoy to €68.3 bil-lion. This volume reached €139.1 billion YTD, up 26.9% yoy.

Private fixed income trading increased by 67.4% yoy to ■€1.20 trillion. During the first half of 2011, trading was just above €3 trillion, a yoy increase of 134.6%.


Quarter Overview

The first half of 2011 once again provided maximum operat-ing efficiency levels in this indicator. The further containment of operating costs, down 7.8% in the period, gave rise to an improvement in the cost-to-income ratio.

The indicator stood at 32.7% for 2Q11 and 30.7% YTD, versus 30.6% and 31.0%, respectively, in 2010. After adjust-ment for extraordinary items, the efficiency ratio in 2011 stood at 30.9% vs 30.0% in 2010.

(% E

ffici

ency

)

2010 2011

Consolidated efficiency ratio evolution

BME efficiency ratio (Cumulative and quarterly series)

30.6% 31.0%32.7% 30.7%

2Q10 - 2Q11 1H10 - 1H11

(*) Staff includes, for this purpose, only the 50% of the staff of Infobolsa.

BOLSAS Y MERCADOS ESPAÑOLES, SOCIEDAD HOLDING DE MERCADOS Y SISTEMAS FINANCIEROS, S.A. AND SUBSIDIARIES COMPRISING THE BOLSAS Y MERCADOS ESPAÑOLES GROUP(CHANGE IN SHAREHOLDERS’ EQUITY)

1H11 1H10

(Th.Eur.) (Th.Eur.)

Shareholder´s Equity Changes

Staff

Efficiency

Average number of staff 706 713 703 713

Employees as at balance sheet date 708 713 708 713

Shareholders’ equity – opening balance 448,429 453,161 Supplementary dividend (49,967) (49,967)Extraordinary dividend (30,980) (30,980)Valuation reserves (784) 2,034 Equity instruments 390 579 Business combinations (560) 0 Net income/loss in reporting period 77,946 84,442 Shareholders’ equity – closing balance 444,474 459,269

Bolsas y Mercados Españoles(Staff)(*)

2Q11 2Q10 1H11 1H10


Quarter Overview

In 2Q11 the return of tension in the debt markets and doubts with regard to the recovery, strength and growth of the economy caused the prices of securities markets to drop. In this regard, BME’s share price was likewise affected and closely linked to the overall change of the market, measured by its IBEX 35® reference index. The IBEX 35® registered a 4.8% decrease in the quarter, while BME’s share price decreased 6.3%, closing the quarter at €20.53 per share. According to this closing refer-ence, BME’s share price has risen 14.6% since the end of the first half of 2010, outperforming the market, as the IBEX 35® index rose 11.8% during this same period.

The differential behaviour with regard to the market began in late 2010, since when the share price has risen 15.1% while the IBEX 35® reference indicator has increased 5.1%.

The turnover daily average traded in 1H11 increased by 3.6% and in 2Q11 by 9.0%, in both cases yoy. The number of trades in 2Q11 was 14.6% higher than in the same period last year. The volume of trades increased 12.9% yoy in the first half of 2011. The volume of shares traded in 2Q11 was unchanged from 2Q10 and was very similar in half-year terms (down 1.2%), which reflects the effect of the price trend on turnover traded.

40

50

60

70

80

20

21

22

23

24

l. E

uros

)

ce

volume Closing

BME: Share performanceQuarterly BME's turnover and share performance evolution

0

10

20

30

16

17

18

19

01/0

4

07/0

4

13/0

4

19/0

4

27/0

4

03/0

5

09/0

5

13/0

5

19/0

5

25/0

5

31/0

5

06/0

6

10/0

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16/0

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22/0

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28/0

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Tur

nove

r (M

il

Pric

Share Performance

BME's share performance

Higher quote 23.50 21.85 7.6% 23.65 23.96 -1.3%

Lower quote 19.03 17.31 9.9% 17.53 17.31 1.2%

Average quote 21.50 19.55 10.0% 21.22 20.21 5.0%

Closing quote 20.53 17.91 14.6%

BME's trading daily turnover (Mill. Euros)

Higher daily turnover 33.8 32.8 3.0% 79.4 56.9 39.5%

Lower daily turnover 2.9 2.3 26.1% 2.9 2.3 26.1%

Average daily turnover 12.1 11.1 9.0% 14.5 14.0 3.6%

BME's shares trading (Mill. Shares) 35.2 35.2 0.0% 85.7 86.7 -1.2%

BME's number of trades 82,256 71,752 14.6% 192,676 170,716 12.9%

Bolsas y Mercados Españoles(Share performance)

2Q11 2Q10 ∆ 1H11 1H10 ∆

Share Information


58,131

32 136

52,795

30 879

(Th.

Eur

os)

2010 2011

Key Investment Highlights Key Financial Business Units overview

EBITDA evolution by Business Unit (1H11)

32,136

6,037

12,3668,222

2,615 1,881

30,879

6,945

12,953

6,8553,169 2,423

EQUITY CLEARING & SETTLEMENT

LISTING MARKET DATA & INFORMATION

DERIVATIVES FIXED INCOME IT & CONSULTING

Bolsas y Mercados Españoles(Business Units 1H11) (Thousands of Euros)

EquityClearing & Settlement

ListingMarket Data &

InformationDerivatives

Fixed Income

IT & Consulting

Equity 30,514 39,428 -22.6% 68,906 74,145 -7.1%

Clearing & Settlement 18,813 21,383 -12.0% 37,798 38,811 -2.6%

Listing 5,328 5,958 -10.6% 11,580 11,005 5.2%

Market Data & Information 8,346 7,808 6.9% 16,187 15,526 4.3%

Derivatives 5,712 7,296 -21.7% 12,541 13,687 -8.4%

Fixed Income 2,347 1,866 25.8% 4,645 3,953 17.5%

IT & Consulting 4,043 3,646 10.9% 7,733 7,036 9.9%

Total 75,103 87,385 -14.1% 159,390 164,163 -2.9%

Corporate Unit 3,905 10,485 -62.8% 6,648 13,446 -50.6%

Consolidation adjustments (2,176) (2,005) 8.5% (4,296) (4,195) 2.4%

Consolidated 76,832 95,865 -19.9% 161,742 173,414 -6.7%

Equity 22,380 31,401 -28.7% 52,795 58,131 -9.2%

Clearing & Settlement 15,191 18,216 -16.6% 30,879 32,136 -3.9%

Listing 3,010 3,452 -12.8% 6,945 6,037 15.0%

Market Data & Information 6,506 6,268 3.8% 12,953 12,366 4.7%

Derivatives 2,805 4,506 -37.7% 6,855 8,222 -16.6%

Fixed Income 1,600 1,185 35.0% 3,169 2,615 21.2%

IT & Consulting 1,400 1,035 35.3% 2,423 1,881 28.8%

Total 52,892 66,063 -19.9% 116,019 121,388 -4.4%

Corporate unit (1,165) 458 -354.4% (3,904) (1,817) 114.9%

Consolidation adjustments 0 0 0 0

Consolidated 51,727 66,521 -22.2% 112,115 119,571 -6.2%

Revenues 68,906 37,798 11,580 16,187 12,541 4,645 7,733

Operating Costs (16,111) (6,919) (4,635) (3,234) (5,686) (1,476) (5,310)

EBITDA 52,795 30,879 6,945 12,953 6,855 3,169 2,423

Bolsas y Mercados Españoles Revenues

Business Units Revenues (Thousands of Euros) 2Q11 2Q10 ∆ 1H11 1H10 ∆

Bolsas y Mercados Españoles EBITDA

Business Units EBITDA (Thousands of Euros) 2Q11 2Q10 ∆ 1H11 1H10 ∆


Business Units Quarter Overview

Revenue of the equity business unit in the first half of 2011 amounted to €68,906 thousand, a 7.1% decline yoy. EBITDA dropped by 9.2% to €52,795 thousand in this period. In 2Q11, revenue and EBITDA fell by 22.6% and 28.7%, respectively, to €30,514 thousand and €22,380 thousand.

In 1H11, the turnover traded in equities was €485.9 billion,

down 8.1% yoy. The number of trades in the first half of 2011 increased by 11.5% yoy to 23.5 million. In 2Q11, €238.4 billion in equity was traded, a yoy decrease of 20.3%, where May 2010 was a month of record trading. The number of trades in 2Q11 dropped by 9.3% yoy to 10.5 million.

Turnover in the warrants and certificates market was down

Equity

Revenues 30,514 39,428 -22.6% 68,906 74,145 -7.1%

Operating Costs (8,134) (8,027) 1.3% (16,111) (16,014) 0.6%

EBITDA 22,380 31,401 -28.7% 52,795 58,131 -9.2%

100

118

81

98

63

108115

72

99

67

82 82 8374

4 4 4 6 4 6 4 6

Turnover, Trades and Shares (Monthly basis)

Equity Business unitActivity Overview

5463 67

10.1 12.6 14.3 11.3 6.3 7.4

21.315.2 15.6

23.410.5 10.7

18.19.3 10.8

3.4

4.4

3.8 3.12.5

2.9 3.3

4.63.4

4.63.8

4.63.5

3.43.5

4/10 5/10 6/10 7/10 8/10 9/10 10/10 11/10 12/10 1/11 2/11 3/11 4/11 5/11 6/11Turnover (€ Bill.) Shares (Bill.) Trades (Mill.)

299

216

295

247 238

11 613.0

Turnover, trades and Shares traded (Quarterly basis)

Equity Business unitActivity Overview

37.0 25.052.0 44.6 38.2

11.6

8.5

11.210.5

2Q10 3Q10 4Q10 1Q11 2Q11

Turnover (€ Bill.) Shares (Bill.) Trades (Mill.)

Bolsas y Mercados Españoles(Equity Business Unit Income) (Th.Eur.)

2Q11 2Q10 ∆ 1H11 1H10 ∆



41.7% on 2Q11 to €296 million. The number of trades also fell, by 47.6% yoy, in the second quarter. During the first six months of 2011, turnover was down by 9.9% and the number of trades dropped by 26.2%.

Exchange-traded funds (ETFs) saw a decrease of 79.0% yoy in turnover trading volumes and 62.7% in the number of trades in 2Q11. During the first six months of 2011, turnover traded was down by 62.3% and the number of trades decreased by 45.2%.

TRADING (Mill. Euros) 238,426 299,322 -20.3% 485,889 528,783 -8.1%

Equity

Turnover (Mill. Euros) 237,559 296,099 -19.8% 483,470 523,543 -7.7%

Number of trades 10,410,836 11,421,119 -8.8% 23,341,210 20,842,638 12.0%

Average amount per trade (Euros) 22,818 25,926 -12.0% 20,713 25,119 -17.5%

Exchange Traded Funds (ETFs)

Turnover (Mill. Euros) 571 2,715 -79.0% 1,653 4,390 -62.3%

Number of trades 8,154 21,863 -62.7% 22,091 40,343 -45.2%

Warrants

Turnover (Mill. Euros) 296 508 -41.7% 766 850 -9.9%

Number of Trades 60,042 114,665 -47.6% 146,667 198,676 -26.2%

Number of shares (Mill. Shares) 38,226 36,963 3.4% 82,847 60,935 36.0%

CAPITALISATION (Mill. Euros) 1,132,776 963,703 17.5%

Bolsas y Mercados Españoles(Equity Business Unit Activity Overview)

2Q11 2Q10 ∆ 1H11 1H10 ∆



The Settlement unit reported EBITDA of €15,191 thousand in 2Q11 and a cumulative €30,879 thousand in 1H11. These amounts represent a decrease of 16.6% and 3.9% yoy, respectively. Income contributed by the unit’s activities regard-ing settlement, registration and services provided to issuers decreased by 2.6% to €37,798 thousand in 1H11 and by 12.0% to €18,813 thousand in 2Q11.

Stripping out the impact of the default management serv-ice’s activity, the unit’s registration revenue in the first half of 2011 climbed 6.1% (7.9% in 2Q11), while settlement revenue decreased by 11.5% (27.9% in 2Q11).

The nominal amount registered by the end of 1H11 in the

Equity and Fixed Income (both private and public) markets totalled €1.62 trillion, representing yoy growth of 7.1%.

The number of operations settled in the first half climbed 4.0% to 21.9 million, up from 21.1 million in the first six months of 2010. The average daily turnover settled in the period was €323.0 billion, up 0.7% yoy.

On 25 May Circular 4/2011 on changes in tariffs and penalties was approved. This Circular changes the tariffs applied by set-tlement and registration services for trading securities under Chapter V of Iberclear’s Regulations, approving the tariffs to be applied to OTC and SMNs trading.

11,619,458

8,831,625

11,799,844 11,554,541

10,352,266

Ope

ratio

ns s

ettle

d

Number of transactions settled (Quarterly basis)

C&S Business unit Activity Overview

2Q10 3Q10 4Q10 1Q11 2Q11

Clearing & Settlement

Revenues 18,813 21,383 -12.0% 37,798 38,811 -2.6%

Operating Costs (3,622) (3,167) 14.4% (6,919) (6,675) 3.7%

EBITDA 15,191 18,216 -16.6% 30,879 32,136 -3.9%

Bolsas y Mercados Españoles(Clearing & Settlement Business Unit Income) (Th.Eur.)

2Q11 2Q10 ∆ 1H11 1H10 ∆



After Iberclear began trading in LinkUp Markets with the German CSD Clearstream Banking A.G. Frankfurt (CBF) in February, the settlement, entry and registration of securities and trades, both free of payment and against payment, was carried out in 2Q11 among participating entities and the afore-mentioned CSD.

In addition, is taking place the development work and tests nec-essary to establish the link with the Austrian CSD Oesterreich-ische Kontrollbank AG (OeKB) and the Swiss CSD SIX SIS Ltd. (SIS) by the end of the year.

Financial entities have completed their processes of registering as REGIS-TR members. With these processes completed, the entities are beginning to register all cross trades between them in interest rate derivatives. The first trades registered were received on 18 July.

Delivery of the second stage of the system is scheduled for the second half of October. This delivery includes registering currency derivatives and enabling supervisors to access the system.

Bolsas y Mercados Españoles(Clearing & Settlement Business Unit Activity Overview )

2Q11 2Q10 ∆ 1H11 1H10 ∆

Operations settled 10,352,266 11,619,458 -10.9% 21,906,807 21,058,237 4.0%

Turnover settled (billion euros daily avg.) 323.0 320.7 0.7%

Nominal amount registered (billion euros) 1,615.2 1,508.4 7.1%



Income in the Listing unit decreased by 10.6% to €5,328 thousand in 2Q11 and by €11,580 thousand in 1H11 (up 5.2%). EBITDA in 2Q11 amounted to €3,010 thousand, a yoy decrease of 12.8%, and totalled €6,945 thousand YTD, for a 15.0% increase.

At 30 June 2011, the total market capitalisation of companies admitted to listing on markets managed by BME stood at €1.13 trillion, up 17.5% yoy.

Investment flows channelled through the Exchange in the first half of 2011 amounted to €18.7 billion, 156.0% above the amount channelled as new shares and listed shares in the first half of 2010. Within the flows channelled into listed shares in 2Q11, the capital increases of Gas Natural and BBVA are par-ticularly noteworthy.

On 5 July DIA was admitted to listing in the general trading segment. In this segment, as a result of the process of restruc-turing the financial sector, the first admissions to listing, in ordi-nary shares, of companies in the Savings Bank sector, Bankia and Banca Cívica took place on 20 and 21 July.

On 6 June Catenon was incorporated into the MAB’s segment of growth companies. On 6 July Lumar was admitted to lis-ting, increasing the number of companies in this segment to 15. In this same segment, Gowex carried out its first capital increase.

On 30 June a report was issued in favour of the incorporation of Secuoya into the MAB for high growth companies and on 4 July the same was done regarding the incorporation of Griñó Ecologic.

At 30 June 2011, 3,094 SICAVs had been admitted to trading on the Alternative Equity Market (MAB), a 3% decrease yoy.

The number of warrants admitted for trading in the first six months of 2011 dropped 12% yoy to 3,724.

The number of ETFs admitted for trading was 65 and another 9 ETFs are expected to be admitted.

The value of the total volume of new issues admitted to listing on the AIAF fixed income market in 2Q11 increased 28.8% yoy to €68.3 billion. The value of the total volume for 1H11 reached €139.1 billion, a 26.9% increase.

Current assets (company promissory notes) were at a low admission to trading level, as in previous quarters, with a mon-thly average of only 7,700 million; however, this represents a 23.5% increase over 2H10. Still, compared to the year-ago period, the drop was 14.1%.

The increases were due to the increase in medium- and long-term assets (up 31.6%), which resulted mainly from the growth in issues of covered and securitised bonds, with numerous issues taking advantage of the relaxation of the country risk premium in April and May. The six-month period ended with an increase of 69.9%.

However, the continued deterioration of the debt crisis in June caused a slowdown in the recovery of outstanding balances, which ended 1H11 at €848.3 billion for 0.6% yoy increase.

Listing

Revenues 5,328 5,958 -10.6% 11,580 11,005 5.2%

Operating Costs (2,318) (2,506) -7.5% (4,635) (4,968) -6.7%

EBITDA 3,010 3,452 -12.8% 6,945 6,037 15.0%

Equity Market

Number of Companies listed 3,355 3,436 -2.4%

Market Capitalisation listed (Mill.Euros) 1,132,776 963,703 17.5%

New shares nominal listed (Mill. Euros) 42 52 -19.2% 1,025 108 849.1%

Investment Flows channeled through Exchange (Mill. Euros)

New listed companies 95 5,456 -98.3% 8,527 5,595 52.4%

Already listed companies 2,275 1,629 39.6% 10,157 1,704 496.1%

Fixed Income Market

AIAF Fixed Income volume admitted (nominal Mill. Euros) 68,290 53,031 28.8% 139,081 109,624 26.9%

Public Debt Outstanding Balance (Mill. Euros) 621,400 540,820 14.9%

Private Fixed Income Outstanding Balance (Mill. Euros) 848,296 843,513 0.6%

Bolsas y Mercados Españoles(Listing Business Unit Income) (Th.Eur.)

2Q11 2Q10 ∆ 1H11 1H10 ∆

Bolsas y Mercados Españoles(Listing Business Unit Activity Overview)

2Q11 2Q10 ∆ 1H11 1H10 ∆



Revenue of the Information unit rose by 6.9% to €8,346 thousand in 2Q11 and by 4.3% to €16,187 thousand YTD. Once operating costs incurred are discounted, EBITDA generated by the unit amounted to €6,506 thousand (up 3.8%) in 2Q11 and €12,953 thousand (up 4.7%) in 1H11.

The trend seen in previous periods for the total number of customers to grow was extended with an increase of 10.6% over 2Q10 and similar growth was seen in the number of cus-tomers with a direct connection to BME’s information servers (up 10.7%).

The content offering was expanded as a result of the incorpora-tion of data from the MEFF Energía platform, the integration of new instruments to the ETF and warrant markets and the MAB, and the launching of three new indexes based on the IBEX 35® (the IBEX 35® Doble Apalancado Bruto, the IBEX 35® Doble Apalancado Neto and the IBEX 35® Capped Net). The develo-pment of a series of End-of-Day and Reference Data informa-tion products was also completed. The products will begin to be marketed in early 3Q11.

Market Data & Information

Revenues 8,346 7,808 6.9% 16,187 15,526 4.3%

Operating Costs (1,840) (1,540) 19.5% (3,234) (3,160) 2.3%

EBITDA 6,506 6,268 3.8% 12,953 12,366 4.7%

Bolsas y Mercados Españoles(Information Business Unit Income) (Th.Eur.)

2Q11 2Q10 ∆ 1H11 1H10 ∆



The overall volume of contracts traded in the derivatives busi-ness line in the second half of 2011 remained similar to the same period of 2010, dropping by only 0.2%. The volume in the first half of 2011 was 6.4% above the volume traded in the same period last year.

BME was able to maintain the global volume of contracts traded as a result of the growth during the year in stock futures, whereas the other derivative products arranged decreased in 2Q11, which in turn led to overall decreases in the six-month period.

The lower margin contributed by the stock futures contracts affected the unit’s results. Revenue from trading in the various underlying assets offered by the unit totalled €12,541 thousand

in 1H11 (down 8.4%) and €5,712 thousand in 2Q11 (down 21.7%). EBITDA dropped by 16.6% in the half year and 37.7% in the quarter, to €6,855 thousand and €2,805 thousand, res-pectively.

Trading in IBEX 35® futures and options contracts fell com-pared to 2Q10 which saw an increase in trading as a result of the debt market situation and the effect on the Spanish market of refinancing and bailing out Greece, Portugal and Ireland. Overall, the notional volume represented by trading in this seg-ment fell by 36.0% in the quarter and 22.3% for the six-month period.

Contracts on individual stocks performed favourably. This was especially true of stock futures, the volume of which increased

2,053

1,3271,433

1,575

1,2811,286

um

be

r o

f co

ntr

act

s (T

h.)

IBEX 35® Futures MiniIBEX 35® Futures IBEX 35® Options

Derivatives Business unit Activity Overview

Index derivatives contracts traded

699 723900

723

977

489

801

487 502

2Q10 3Q10 4Q10 1Q11 2Q11

Nu

Derivatives

Revenues 5,712 7,296 -21.7% 12,541 13,687 -8.4%

Operating Costs (2,907) (2,790) 4.2% (5,686) (5,465) 4.0%

EBITDA 2,805 4,506 -37.7% 6,855 8,222 -16.6%

6,651

8,006 8,4378,9048,137

10,744

8,368

um

be

r of

con

tract

s (T

h.)

Stock Futures Stock Options

Derivatives Business unit Activity Overview

Stock derivatives contracts traded

3,9274,970

6,651 6,164

2Q10 3Q10 4Q10 1Q11 2Q11

Nu

Bolsas y Mercados Españoles(Derivatives Business Unit Income) (Th.Eur.)

2Q11 2Q10 ∆ 1H11 1H10 ∆



by 114.8% in the quarter and 103.9% in the first half of 2011. Stock options maintained their high trading levels, although lower than the previous year. The combined notional value of stock derivatives increased by 11.8% in the quarter and 6.0% in the six-month period.

The open interest at 30 June 2011 was 12.6 million contracts, 7.2% less than a year earlier.

The number of transactions in the quarter fell 39.6% to 1.12 million.

Volume in MEFF’s clearing house, MEFFRepo, increased signi-ficantly. The number of participating entities increased from 14 in June 2010 to 34 in June 2011. A key indicator of the clearing house’s higher volume is that financing increased from €6,612 million to €28,681 million (in both cases, using the moving ave-rage of the last 10 business days of the month).

Derivatives Contracts (number of contracts) 17,108,446 17,146,994 -0.2% 36,446,611 34,249,990 6.4%

Index Derivatives (number of contracts)

IBEX 35® Index Futures 1,280,699 2,053,136 -37.6% 2,855,971 3,520,771 -18.9%

Mini IBEX 35® Index Futures 722,652 1,285,964 -43.8% 1,623,133 2,157,619 -24.8%

IBEX 35® Div Impact Futures 1,400 0 - 2,555 0 -

IBEX 35® Index Options 502,239 976,647 -48.6% 989,414 1,782,439 -44.5%

Total notional value (Mill.Euros) 144,809 226,391 -36.0% 315,850 406,246 -22.3%

Equity Derivatives (number of contracts)

Equity Futures 8,437,226 3,927,137 114.8% 16,443,265 8,063,445 103.9%

Equity Options 6,164,230 8,904,110 -30.8% 14,532,273 18,725,716 -22.4%

Total notional value (Mill.Euros) 16,733 14,967 11.8% 35,204 33,209 6.0%

Open Interest (number of contracts) 12,646,878 13,623,600 -7.2%

Number of Trades 1,119,193 1,852,523 -39.6% 2,574,746 3,209,084 -19.8%

Bolsas y Mercados Españoles(Derivatives Business Unit Activity Overview)

2Q11 2Q10 ∆ 1H11 1H10 ∆



This business unit includes only fixed income trading.

Operating income obtained in 2Q11 was up by 25.8% to €2,347 thousand, and up 17.5% to €4,645 thousand YTD. EBITDA was up 35.0% to €1,600 thousand for the quarter and up 21.2% to €3,169 thousand for the half year.

In 2Q11, trading in the Fixed Income business unit stood at €1.25 trillion, a yoy increase of 56.7%.

Trading in Private Fixed Income grew by 67.4% yoy to €1.20 tri-llion. The greatest percentage of this volume relates to repo and simultaneous trading; trading to maturity decreased by 5.5%. In the first half of 2011, trading was slightly more than €3 trillion, for a 134.6% yoy increase.

The number of trades totalled 205,956, which represents a 25.2% rise, although if only trading to maturity is considered the increase would stand at 30%.

The SEND platform for trading issues aimed at retail investors continues to perform positively after its first year of operations.

Trading on the platform for public debt amounted to €28.2 billion in 2Q11 and €55.5 billion YTD, which represents yoy decrea-ses of 56.9% and 53.3%, respectively. These drops are attri-butable to the declining repo trading, which was transferred to the MEFFRepo clearing house, whereas trading to maturity increased by 31.5% in the quarter and 20.4% in the six-month period.

41,659

27,357

28,163

18,981

12,771

17,747

(Mill

. Eu

ros)

Other Equity Market Fixed Income Public Debt Private Fixed Income

Fixed IncomeActivity

Fixed Income Turnover

718,364893,820

1,473,8211,827,356

1,202,24965,347

76,10712,96713,612

2Q10 3Q10 4Q10 1Q11 2Q11

Fixed Income

Revenues 2,347 1,866 25.8% 4,645 3,953 17.5%

Operating Costs (747) (681) 9.7% (1,476) (1,338) 10.3%

EBITDA 1,600 1,185 35.0% 3,169 2,615 21.2%

Bolsas y Mercados Españoles(Fixed Income Business Unit Income) (Th.Eur.)

2Q11 2Q10 ∆ 1H11 1H10 ∆

Bolsas y Mercados Españoles(Fixed Income Business Unit Activity Overview)

2Q11 2Q10 ∆ 1H11 1H10 ∆

Public Debt Turnover (Mill. Euros) 28,163 65,347 -56.9% 55,520 118,825 -53.3%

Private Fixed Income Turnover (Mill. Euros) 1,202,249 718,364 67.4% 3,029,605 1,291,207 134.6%

Other Equity Market Fixed Income Turnover (Mill. Euros) 17,747 12,967 36.9% 30,518 30,054 1.5%

Fixed Income Total Turnover (Mill. Euros) 1,248,159 796,678 56.7% 3,115,643 1,440,086 116.4%



Income from the IT and Consulting unit amounted to €4,043 thousand in 2Q11, up 10.9% yoy. The joint contribution of the various services offered in the unit generated revenue of €7,733 thousand in the first half of 2011, up 9.9% on 2010. Once oper-ating costs incurred are discounted, the unit’s EBITDA was €1,400 thousand (up 35.3%) and €2,423 thousand (up 28.8%) in 2Q11 and 1H11, respectively.

Post-trading and trade-routing services raised by 28.1% the percentage of orders traded at BME (Equity) through Visual Trader, and the number of orders managed increased by 85.9% over the first half of 2010. The number of VT-maX terminals installed in 1H11 increased by 10%.

With regard to consulting, the six-month period was char-acterised by the wide acceptance, in other markets, of tools

first introduced to comply with implementing legislation in the Spanish market, while several tenders were in their final rating phases.

With regard to back-office services, the spectrum of alternative technological infrastructure services was broadened and new customers and financial communication features were incor-porated into BME Highway. In terms of compliance with leg-islation, the credit institutions were incorporated as regulatory reporting clients. Also, the second phase of SICAM phase was launched, which implies analysing the orders. This will allow for the detection of conduct that may constitute market manipula-tion. This second phase will be executed in the second half of 2011. The 7.5% increase of customers in this service in 2011 is noteworthy.

IT & Consulting

Revenues 4,043 3,646 10.9% 7,733 7,036 9.9%

Operating Costs (2,643) (2,611) 1.2% (5,310) (5,155) 3.0%

EBITDA 1,400 1,035 35.3% 2,423 1,881 28.8%

Bolsas y Mercados Españoles(IT & Consulting Business Unit Income) (Th.Eur.)

2Q11 2Q10 ∆ 1H11 1H10 ∆



bme financial results 1h11

Economy & Finance