bvmf presentation - january 2013

7/30/2019 BVMF Presentation - January 2013

1/47

January2013January2013


2/47

ForwardLookingStatements

Thispresentationmaycontaincertainstatementsthatexpressthemanagementsexpectations,beliefsandassumptions

aboutfutureeventsorresults.Suchstatementsarenothistoricalfact,beingbasedoncurrentlyavailablecompetitive,

financialandeconomicdata,andoncurrentprojectionsabouttheindustriesBM&FBovespaworksin.

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

verbsareintendedtoidentifytheseforwardlookingstatements,whichinvolverisksanduncertaintiesthatcouldcause

actualresults

to

differ

materially

from

those

projected

in

this

presentation

and

do

not

guarantee

any

future

BM&FBovespa

.

Thefactorsthatmightaffectperformanceinclude,butarenotlimitedto:(i)marketacceptanceofBM&FBOVESPAservices;

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

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

related

to

the

financial

and

securities

markets;

(iv)

increasing

competition

from

new

entrants

to

the

Brazilian

markets;

(v)

abilitytokeepupwithrapidchangesintechnologicalenvironment,includingtheimplementationofenhanced

functionalitydemandedbyBM&FBovespacustomers;(vi)abilitytomaintainanongoingprocessforintroducing

competitivenewproductsandservices,whilemaintainingthecompetitivenessofexistingones;(vii)abilitytoattractnew

customersindomesticandforeignjurisdictions;(viii)abilitytoexpandtheofferofBM&FBovespaproductsinforeign

jurisdictions.

Allforwardlookingstatementsinthispresentationarebasedoninformationanddataavailableasofthedatetheywere

made,and

BM&FBovespa

undertakes

no

obligation

to

update

them

in

light

of

new

information

or

future

development.

,

anysaleofsecuritieswheresuchofferorsalewouldbeunlawfulpriortoregistrationorqualificationunderthesecurities

law.NoofferingshallbemadeexceptbymeansofaprospectusmeetingtherequirementsoftheBrazilianSecurities

CommissionCVMInstruction400of2003,asamended.

2


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BVMFSTOCKPRICE

Recent Per ormance

3


4/47

BVMF3 Recentperformance

BM&FBOVESPA IBOVESPA

BVMF3 YTD: +42.9%

Iboves a YTD: +7.4%

IOFs

10/17

R$14.97

Goodwill

11/30R$13.01

Competition

News01/05

R$13.10

ChangeofIOF

onforeign

Rumors

aboutIOF

e uc onso o umes

Estimatesby

the

Market Removal

ofIOFonEquities

12/01

R$10,54

exchange

transactions06/14

ExchangesMergers

02/08

R$11.18

BATs

02/15

R$11.43

Derivatives07/26

R$9.55

DirectEdge

11/21

R$10.11

Oxera's Report

Release

06/18

Aug

10

Sep

10

Oct

10

Nov

10

Dec

10

Jan

11

Feb

11

Mar

11

Apr

11

May

11

Jun

11

Jul11

Aug

11

Sep

11

Oct

11

Nov

11

Dec

11

Jan

12

Feb

12

Mar

12

Apr

12

May

12

Jun

12

Jul12

Aug

12

Sep

12

Oct

12

Nov

12

Dec

12

Updateduntil12/31/2012.4


5/47

BRAZILIANMARKETOPPORTUNITIES

5


6/47

EquityMarket(BOVESPASegment)LowpenetrationintheBrazilianmarket

Numberofcustodyaccounts(thousands) Pensionfundsportfolio

LowpenetrationofequityR$574billion

Dec12

investorsportfolios

Stableandlowinterestrateenvironmentencourage

Equity

FixedIncomeandOthers

69.9%

.

moreexposure nequ t es

Recentgrowthinthenumberofretailinvestors,butstilllowcomparedtoother

R$168billion

30.1%

27.7%

72.3%

Jan'05

128.6

markets

ListedCompanies

2002 2011

Jan

05

Jul05

Jan

06

Jul06

Jan

07

Jul07

Jan

08

Jul08

Jan

09

Jul09

Jan

10

Jul10

Jan

11

Jul11

Jan

12

Jul12

Lownumberoflistedcompaniescomparedtoothercountries

Lack

ofimportant

economic

sectors

in

the

6.752

4.988 , , ,retail,ITandpharmaceutical,

Investmentcyclemaybringnewcompaniesandsectorstotheexchange

3.945 3.838 3.520 3.2762.886

2.079 1.816

373

Source:ABRAPP,WFEandBM&FBOVESPA6

Currently,SMEsarenotabletoraisemoney

throughequity

easilyIndia US A Canada China/H K Japan S pain UK Australia K orea B razil


7/47

DerivativesMarket(BM&FSegment)Growthinthecreditlevelwillfavorvolumes

CredittoGDP TradeFlow(totalImports+ExportsinUSDbillions)

51.0%Mortgage

281

371

281

384

482

27.4%

TotalCredit

4.5%5.8%

InterestRateinBRLcontracts:growthincreditlevels,speciallyinfixedrates,supporttheincreasetheactivityof

2006 2007 2008 2009 2010 2011

FXcontracts:growthintheamountofforeigntradingandchangeinthecultureoftheBrazilianentrepreneurscan

pushup

volumes

in

this

group

of

contracts,

mainly

in

currencies

other

than

US$

Indexbasedcontracts:growthincashequitymarket,thelaunchinganddevelopmentofETFsandthegrowthofexposuretoequitybyinstitutionalinvestorscandrivethegrowthofthesecontracts

7

Commoditiescontracts:

cash

settled

contracts

and

the

change

in

the

behavior

of

farmers

that

are

becoming

more

sophisticated


8/47

MAININITIATIVES

8


9/47

ConsistentGrowthHistoricrecordofvolumeskeepinglongtermgrowthtrend

ADTV

(inR$millions)

ETFs Exchange

Traded Funds Tesouro

Direto

AverageNumberofInvestors RetailInvestors

(inthousands)

23.8 27.536.3 42.3

64.4

82.7 78.9 83.086.0 88.4 89.4

18.6 28.548.7

115.997.6

155.8

102.3 107.5

2009 2 010 2011 2012 1Q12 2Q12 3Q12 4Q12

AverageAssetsunderManagement* AverageAssetsunderCustody

(inR millions)

6.1

8.67.9

8.8 9.39.9 9.9

1,974

1,3221,696

2,336 2,541

1.3 1.82.9

3.9

271 579

,

2009 2010 2011 2012 1Q12 2Q12 3Q12 4Q12

*ExcludedPIBB11. 9


10/47

HighGrowthProducts

RealEstateFunds(FII)andAgribusinessCreditBills(LCA)

FIXEDINCOME

AND

REAL

ESTATE

PRODUCTS

AgribusinessCreditBills(LCAs)RealEstateFunds (FIIs)

25.423.825

30

.

10

15

20

0.1

Jan

11

Feb

11

Mar11

Apr11

May

11

Jun

11

Jul11

Aug

11

Sep

11

Oct11

Nov

11

Dec

11

Jan

12

Feb

12

Mar12

Apr12

May

12

Jun

12

Jul12

Aug

12

Sep

12

0

5

Assetsundercustody(R$billions)

96.2

ADTV(R MM) MktCap(R BN)

60%40%19.7

Mkt.ShareBVMF Other

10

#ofinvestors


11/47

HighGrowthProductsIncreasedsophisticationofmarketparticipants

9 Focusonproductandmarketdevelopment,supporting

HIGHGROWTH

PRODUCTS

9 Ibovespaindexrelatedproducts(optionson

9 Selectedfastgrowthproductsaccountedfor7.6%oftotalrevenuesin3Q12(7.3%in3Q11)

,negativelyimpactedbyreducedvolatilitywhencomparedto3Q11

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

+68.9%17.3%CAGR:+24.1%

6.5%(R$billion)

CAGR:+34.5%

213.0 210.7

53.1 89.7

80 89123

153 143119

1.1%

12.7 20.530.2 30.9 31.6 29.5

PETR+VALE Others2009 2010 2011 9M12 3Q11 3Q12

ETFs (ADTV R$MM) TesouroDireto(custody R$Bn)

+45.6%CAGR:+43.8%

+90.2%CAGR:+85.3%

2.9 3.96.1

8.66.4

9.3

2009 2010 2011 9M12 3Q11 3Q12

18.6 28.548.7

118.5

53.8

102.3

2009 2010 2011 9M12 3Q11 3Q1211


12/47

StrategicProjects

Multiasset

trading

platform

(PUMA

Trading

System)

Stateoftheartintradingtechnologyandtechnologicalindependency

Derivatesmodulesuccessfullyimplementedin2H11

LicensingTRADExpress RealTimeClearingsystem

Equitiesmarkettobeconcludedin2H12

Objective:integratingandmodernizingourexistingclearingfacilitiesshouldproceedover2012.

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

Partnership advantages:

cense o use e so ware

Access to the source code

Selling rights over our new clearing platform

RegistrationsystemsforOTCderivatives

Objective: modernize,improveandexpandtherangeofourregistrationservicesforOTC

derivatives,while

offering

our

customers

a

streamlined,

quality

solution

and

thorough

Oneofthemostflexibleandcompleteenginesforregistration,pricediscovery,riskassessment,captureandlifecycleprocessingofthesetransactions

Threemoduleimplementation:thefirstoneisscheduleto2H12,thesecondonefor1H13andthirdmoduleoftheplatformwillbeannouncedinduecourse

12


13/47

ClearingHouses IntegrationBuilding astate of the art platform

EquityandCorporate

*Derivatives FX Securities

Equity,ETFsand fixed

income cash market

Financialand

n

FXspotmarket

n

Cash market and forward

derivatives (optionsandforward)

Securities lending

commo es er va ves(futures,optionsandforward)

OTCderivatives

(US$vs.R$)mar e orgovernmenbonds

=

Capitalefficiency

*AggregateofpledgedcollateralsatourclearinghousestotaledR$181.3billioninSeptember30,2012. 13


14/47

MainProjectsDeliveriesalreadyimplementedandprogrammed

INTENSEDELIVERY

PHASE

STARTING

IN

4Q12

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

Migration ofPUMA

Tradingys em

(equities)

Fixed incometrading

platform

Fixed incomeregistration

platform

OTC DerivativesPlatform (Calypso)

Cross

New integrated clearing house/ CORE*

Construction of the New Data Center

listing

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

*CORE, Close-out Risk Evaluation.

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

14


15/47

BUSINESSMODELANDREGULATORY

FRAMEWORK

15


16/47

PossibleCompetitionImportantconsiderations

EASINGREGULATION

IS

NOT

EXPECTED

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

Competitioninotherexchangeswasintensifiedaftereasingregulation

THEEXCHANGE

FEES

(TRADING

AND

POST

TRADING)

ARE

PAID

BY

THE

FINAL

INVESTOR

DifferentlyfromUSAandEurope,thefinalinvestorsistheonewhopaystheexchangefees

Brokerscouldntincreasetheirshareintheallintradingcostpieincaseofreductionontheexchangefees

STOCKSTRADINGALLINCOSTINBVMFISCOMPETITIVE

Despitethemisleadingperception,allincostinBVMFiscompetitivecomparedtoothermarkets

Comparingonlythetradingfeesamongexchangesismisleading.BVMFprovideshigherportionofservicesthanthe

ITINFRASTRUCTUREMOVINGTOSTATEOFTHEART

IncreasingparticipationofHFTviaColocation(movingtosubmillisecondlatency)

RECENT BM&FBOVESPA INITIATIVES REBALANCING OF FEES STRUCTURE

Shiftbetweentradingandposttradingfees

16


17/47

PanelsponsoredbyCVMMainpoints

OnJune

29,

CVM

sponsored

adiscussion

with

stakeholders

Regulator:thestudyshowsthatcompetitioninexchangeindustryisnoturgent

Participantsview

9Regulator:marketintegrityandtransparencyarepriorities

9Brokers: mostofthemhavedoubtsaboutthebenefitsandshowedconcernsrelatedtocostrisingandrisks

9 Investors: ingeneralhaveaperceptionthatpricesareinlinewithinternationalbenchmarksandareconcernedwithmarketintegrity

9Infrastructure

providers

(exchanges):

non

consensus

regarding

the

necessity

of

opening

the

clearing

houseornotinordertocreatetheconditionsforcompetition

BVMFmainconsiderations:

9UnderstatesregulatoryandIT/infrastructurecostforbrokers

9Disregardsimplicit

costs

of

liquidity

fragmentation

and

does

not

assess

qualitatively

the

price

formationimpacts

9ComparesinadequatelytheothermarketcostswhendoesnotusetheAllincost

9Marketsizeisnotbigenoughtoembracenewexchanges

9Recognizestheimportanceofclearinghousesintegration

17


18/47

EquityMarketSettlementStructureBrazilComparedwithUSA

BRAZIL(Allthetrades mustbematchedonan

exchangeenvironment)

USA(Brokerscaninternalizeorders)

BVMFTrading

TradingVenues

DTCCBVMF

Brokers

AandB

Brokers

AandB

Broker

ABroker

B

Clearing(CCP)Settlement

Central

Depository

Investors InvestorsInvestors Investors

100%verticallyintegrated:clearing,settlement andcentraldepositoryatthebeneficialownerlevel

Brokerscontroltheirclientsportfoliosandsettle

DTCCdoestheclearing,settlement andcentraldepositoryofsecuritiesatthebrokerslevel

Eachbroker(primebroker)hasitsownstructuretopositionsthroughBVMFsinfrastructure (this

impactstheposttradefeeschargedbyBVMF)controltheirclientsportfoliosandsettlepositions

(thisimpact theprimebrokerscosts)

18


19/47

BusinessModel

ListedExchange

Business

Model

DiversifiedandIntegrated IntegratedDerivatives DiversifiedbutNotIntegrated*

Updateduntil:12/28/2012

MarketCapitalization(US$billions)andEBITDAMargin(%)

*Donotprovideposttradingservicesfortheequitymarket

Source:Bloomberg

77.9%

65.5% 61.6% 58.6%69.7%

42.3%

62.2%

76.9%

49.1% 47.6%

59.4%

72.0%

21.017.0 13.7 11.9

9.0 7.7 6.2 5.8 4.9 4.2 2.82.1

HKEx CME BVMF Deutsche ICE N se SGX ASX* LSE Nasda TMX BME

19*12mths to30June2012.

Boerse Euronext

EBITDAMarginDiversified and

integrated Derivatives

Diversified but

not

integrated


20/47

BrazilianMarketRegulatoryFrameworkLegalrequirements:resilience,transparence,clearrules.

Brokers&

investors Regulationprohibits internalizationoforders,darkpoolsandATS/MTFs,stockstradinginbothexchangeandOTCsimultaneously

Settlement

and

clearing

of

stocks

trading

must

be

done

SettlementandclearingatthebeneficialownerlevelmaketheBrazilianmarketsaferandmoreresilient

Trading Underthe

regulation

in

place,

potential

competitors

wouldbeobligedtoprovidethesameintegrated

solution with the same rules and trans arenc

Pos

Trading

Thefinalinvestorpaystheexchangefee

Otherexchan es

have

been

seekin

inte rated

models

(selfclearingmodels)

Nakedaccessisnotallowed

Nakedshortsellingisnotpossible

20


21/47

EndofCPMF

Braziliansstocktradingbreakdown

(Financial

TransactionTax)

SarbanesOxleyAct

(Jul.2002)

NovoMercado

Launching

(Dec.2000)

EndofIOFTax(2%)for

foreigninvestors

(Dec.2011)

24.6%

ec

34.6%

38.8%

10.0%

65.4%

26.6%

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

Source:Bloomberg(inUSDtradedvalueof35companieswithADRsprograms)

199

199

199

199

200

200

200

200

200

200

200

200

200

200

201

201

Apr

1

May

1

Jun

1

Jul1

Aug

1

Sep

1

Oct

1

Nov

1

Dec

1

Jan

1

Fe

b

1

Mar

1

Apr

1

May

1

Jun

1

Jul1

Aug

1

Sep

1

Oct

1

Nov

1

Dec

1

OtherUSAVenues BrazilianADRs NYSE BrazilianADRs

BM&FBOVESPA companieswithADRs BM&FBOVESPA(exceptcompanieswithADRs)

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

IPOs 1 7 9 26 64 4 6 11 11 3 142

Followons 14 5 8 8 10 16 12 8 18 11 11 9 130

*Updateduntil12/31/2012 21

Total 14 6 8 15 19 42 76 12 24 22 22 12 272

DualListings 2 1 1 1 5


22/47

OPERATIONALHIGHLIGHTS

22


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BOVESPASegment:operationalhighlights

v y u

1.2 1.6 2.44.9 5.5 5.3 6.5 6.5 7.3 6.2 6.3

8.37.0 7.3 7.4

8.2

6.07.2

8.46.7 6.6

7.9

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

2004 2005 2006 2007 2008 2009 2010 2011 2012* Dec11 Jan12 Feb12 Mar12 Apr12 May12 Jun12 Jul12 Aug12 Sep12 Oct12 Nov12 Dec12

42.3%

56.4%

63.2%66.6%

63.8%

64.2%

70.3%

2.0

2.01.8

2.3 2.4 2.4

30.8%

29.4%

36.8% 37.6%38.7%

0.70.9

1.3

*Updateduntil12/31/2012./ **Relationofthetradingvalueinthecashmarketandthemarketcapoftheexchange. 23

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20122004 2005 2006 2007 2008 2009 2010 2011 2012* *


24/47

BOVESPASegment:capitalraisingactivity

PublicOfferings

(BRL

billions)

Updateduntil12/31/2012.

11.2

70.1

46.0

74.4FollowOn

IPO

4.3 8.5 15.1 14.526.8 22.2

63.2

10.8 9.24.55.4

15.4

55.

7.5

23.8

7.2 3.98.8 13.9

30.4 .

18.0

13.2

Pipeline:alreadyannouncedtothemarket

2004 2005 2006 2007 2008 2009 2010* 2011 2012

ereare o er ngs nt ep pe ne:

IPO(6):VIXLogstica;AutoBrasil Participaes;Cia.EstadualdeguasEsgotos CEDAE;Lynx;Senior Solution;Alupar Investimentos

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

Additionaly,

there are

16

Real

Estate Funds filed in

CVM:

estimated value of R$3.0

billion

BOVESPA S


25/47

*

BOVESPASegmentPotentialtoincreasethenumberoflistedcompanies

177%

136%129%

174%

137%

158%

138%129%

2009 2010 2011

HongKong: 438% 481% 365%

109%100%

67%75%

87%

72%

100%

119%107%

75% 76%

96%

72%80%

44%

110% 109% 104%

89% 87%

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

35%

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

Market Ca italization b Economic Sector*Source:WorldBank

15.2% 15.7%22.4%

Dec11 Dec05

14.1%

1.8%10.4%

.

21.6%11.5%

4.7%

16.2%

3.9%0.6%

6.8%

2.5%

3.6%

8.6%

0.3%

11.1%

Oil,GasandBiofuels BasicMaterials CapitalGoodsandServices ConstructionandTransportation

ConsumerNonCyclical ConsumerCyclical Information Technology Telecommunications

PublicUtilities Financial

.

25


26/47

BM&FSegment:operationalhighlights

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

509 593 205 245

336 285 308 385

322 2,505 2,701 2,899 2,615 2,4972,994

3,5183,904

2,590 2,819 2,630 2,6262,971

2,653 2,856

422 501 711 988 789 843 1.684 1.797 1.926

1,234 1,636 1,452 2,0612,497 2,681

1,561 1,866 1,723 1,710 2,199 1,747 1,856110 168 266

473 535 447

541 496 494 438

541 545

524 520 485 425 451

327 476 547

86 74 68112

88 8089 123 143

148 123

166 158 106 137 111 99 113

187 109 124 167

162 150 191 285

245 315 334 350 345 355 331

805 852 1,1671,740 1,573 1,521 2,065

2004 2005 2006 2007 2008 2009 2010 2011 2012* Dec11 Jan12 Feb12 Mar12 Apr12 May12 Jun12 Jul12 Aug12 Sep12 Oct12 Nov12 Dec12

BRL Int.Rate(Thous ands ) FX(Thousands) Index(Thousands) Others(Thousands)

a eper on rac

2006 2007 2008 2009 2010 2011 2012* D11 J12 F12 M12 A12 M12 J12 J12 A12 S12 O12 N12 D12*

InterestratesinBRL 0.906 0.950 1.141 0.979 0.889 0.918 1.004 1.086 1.045 1.064 0.926 0.948 0.922 1.059 1.026 1.076 1.130 0.924 1. 044 1.037

ra es . . . . . . . . . . . . . . . . . . . .

StockIndices 1.419 1.501 2.145 1.620 1.564 1.614 1.524 1.719 1.316 1.674 1.328 1.502 1.233 1.708 1.403 1.750 1.407 1.752 1. 400 1.981

InterestratesinUSD 1.094 0.965 1.283 1.357 1.142 0.941 1.015 0.930 0.958 0.804 0.911 0.991 1.021 0.955 1.143 1.027 1.086 1.024 1. 164 1.152

Commodities 4.749 3.195 3.587 2.307 2.168 2.029 2.239 2.385 1.688 2.033 2.183 2.228 1.945 2.099 2.014 2.270 2.840 2.680 2.485 3.360

Minicontracts 0.034 0.054 0.162 0.176 0.128 0.129 0.116 0.132 0.131 0.130 0.130 0.122 0.113 0.116 0.111 0.110 0.109 0.112 0.107 0.112

26

OTC 1.571 2.111 2.355 1.655 1.610 1.635 1.769 2.444 2.438 1.515 1.822 1.880 1.203 1.321 1.523 2.693 1.139 1.738 1.711 2.475

Total

RPC 1.247 1.224 1.527 1.365 1.134 1.106 1.191 1.293 1.236 1.227 1.079 1.100 1.074 1.272 1.222 1.277

1.314

1.098

1.242 1.303*Updateduntil12/31/2012.

Interest Rate in BRL Contracts


27/47

InterestRateinBRLContractsStructuralchangesbehindthegrowthinvolumes

BRLINT.

RATE:

ADV

PER

MATURITY

(MILLIONS

OF

CONTRACTS)

1.71.8 1.8Growthininterestratecontracts

0.8

0.8 0.6

0.81.0

1.2

0.7

0.8

CAGR:+19%

0.20.3

0.5 .

3Q08 3Q09 3Q10 3Q11 3Q12

CAGR: 16%

FixedRateCredit inBRLbillions PublicDebt/FixedRate inBRLbillions

1st4thMaturity 5thMaturity Total

Sep'12:

BRL820.8

Sep'12:

BRL725.0bn

Jan'05:

BRL180.0

Jan'05:

BRL151.4bn

27Source:Brazilian CentralBank

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


28/47

HighFrequencyTrading(HFT)

BM&FSegment:

HFT

(ADTV

in

thousands

of

contracts)

and

mkt.

share

8.7% 8.5% 8.9% 9.1%

155 14488

66

61 50 49

59 73

62 56 63 5879

191

222 233 239274

239 300

481 474419

343268

288

417

528

403442

365 347 358317

283

339

304

3.5% 4.2% 3.9% 3.6%.

5.4%. . . . 5.8% 5.9% 5.8%

. . . .5.0%

. 5.6%

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

225 186 202 223 201 197 227 20465 6571 82

118 101126

153124

85 88141 159

150 116 89 71 61 3153 55

2951 50 49

45 42 42 4155179

BovespaSegment:HFT (ADTVinBRLmillion)andmkt.share

Mini FX Equities Other %inoverallvolume

380

278

230

205

164

245

387

1,683

1,2961,460

1,339

1,145

1,088

1,367

1,160

1,3661,517 1,473

1,268 1,3321,526

1,363 1,3441,517

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

11.4% 10.4% 10.3% 11.5% 9.3% 8.7% 8.4% 8.4% 9.0%10.3%

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

258 352 344 321511 495 561

1,099821

1,016 913 826 785995 854

1,070 1,2381,243

1,041 1,069 1,016785 831 884267

346 261 254

293 253 262

311281

259210 303 306

227 265

212 243246

206

272140 210

192 152 151110

730 746 785899

28

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


29/47

FINANCIALHIGHLIGHTS

29

Highlights 3Q12 vs 3Q11


30/47

Highlights3Q12vs.3Q11Growthinallbusinesslinesandcostsundercontrol

FINANCIAL HIGHLIGHTS

9 GrossRevenue: R$581.3million,+6.2%

OPERATINGHIGHLIGHTS

9 Bovespa Segment:

ovespa eg.: . m on, .

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

Otherrevenues:R$98.7million,+5.8%

: .

Margin: flat

9 BM&FSegment:

9 NetRevenue: R$521.6million,+5.7%

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

.

ADV: 4.0%

9 Highgrowthproducts:

ETFs:+90.2%ADTV

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

Tesouro Direto:+45.6%AUM

FII:stronggrowthinmarketcapitalizationandnumberofinvestors

9 EBITDA:R$375.6million,+8.1%

EBITDAMargin: 72.0%

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

LCA:consistentincreaseofregistervolume

MAINPROJECTSFOR4Q12

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

Crosslisting:listingofS&P500minicontractsatBVMFandIbovespa atCME

9 PUMATradingSystem:equitiesmodule

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

capital,80%ofGAAPnetincomein3Q12

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

Financial Highlights


31/47

FinancialHighlightsFocusoncashgenerationandshareholdersreturn

OPERATING CASHGENERATION CASH

AND

FINANCIAL

INVESTMENTS

(R$million) (R$million)

+6.9%

340.5

364.1 1,443

1,166

340

343

363

390

1,979

2,100

4,125

3,999

2Q12

3Q12

1,270

1,551

,

468

380

284

270

1,487

1,582

,

3,508

3,782

,

3Q11

4Q11

3Q11 3Q12Market

participants

cash

collateral

and

others* Restricted

funds

Subsidiaries** Availablefunds

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

RETURNINGCAPITALTOSHAREHOLDERS

9Budget

range

:

R$230

260

million

CAPEXBUDGETFOR2012

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

9 Sharebuybackprogram:upto60millionsharesauthorizedforrepurchaseuntilJune28,2013

9Actual3Q12:R$52.3million

9Actual9M12:R$124.2million

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

Revenue Breakdown in 3Q12


32/47

RevenueBreakdownin3Q12Diversifiedrevenuesourcesasadifferential

REVENUEBREAKDOWN

(3Q12)

39.3%:CashEquities

9.2%:Trading

30.1%:Posttrading

.

18.5% 5.2%:DerivativesonStocksandIndices

1.4%:Trading

3.8%:Posttrading

30.1%37.0%:

Financial/Commodities

Derivatives

14.3%:Trading

22.7%:Posttrading

Gross Revenue:R$581.3 million

1.4%

22.7%

4.5%:Depository,Custodyandbackoffice

18.5%:Otherrevenues

3.8%

14.3%

.

3.1%:Vendors

2.2%:TradingAccess(brokers)

1.9%:Listing

.

32

Expenses in 3Q12


33/47

Expensesin3Q12Focusoncostcontrolandhigheroperatingefficiency

Other-0.2%

ADJUSTEDEXPENSESTOTAL

EXPENSES

BREAKDOWN

(3Q12)

(R$million)

47%8%

2%

15%

PersonnelThirdParty

Marketing136.3

163.9

125.4 127.9136.0

14%

Depr./

Amort.

R$174.8MM

Data. Proc.

3Q11 4Q11 1Q12 2Q12 3Q12

ADJUSTEDEXPENSES:3Q11vs.3Q12

(R$million)

ADJUSTEDEXPENSES:2Q12vs.3Q12

(R$million)

4.8 0.1 1.71.5 2.4 0.1

127.9

136.0

2.5

(0.3)(0.8)

136.3 136.0

(0.7) (1.1) (2.5)

2Q12Adj.

Exp.

Personnel Dataproc. Third

Party Commun. Marketing Others 3Q12

Adj.

Exp.3Q11Adj.

Exp.

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

33

ADJUSTED OPEX BUDGET


34/47

ADJUSTEDOPEXBUDGET

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

efficiency

(inR$millions)

ExpensesCAGR(201013):1.6%pa

InflationCAGR(20102013)5.8%pa9.8%growthofcashequitiesADTV

=>6.6 6.4 7.2 7.6 7.2

5.71 5.58 5.91 5.50 5.73

Averagemarketcap andturnovervelocity

.

HFTsADTVrose24.9%

alltimehighmonthlyADTVofR$8.4billioninSep12

3Q11 4Q11 1Q12 2Q12 3Q12

ADTV(R$billions) Margin(bps)

recor o . m on ra es n

stable

trading

margins

at

5.7

bps

higherturnovervelocityof70.4%

69.3% 66.6% 66.2% 75.0% 70.4%

HFTs:ADTV

R$

millions and

artici ation

of

volume

%

.

93Q12x2Q12:

. . . . .

3Q11 4Q11 1Q12 2Q12 3Q12

AverageStockMarketCapitalization(BRLtrillions) TurnoverVelocity(%)

.

recordofR$7.6billionin2Q12

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

319.3 249.2 325.3

268.3251.6174.6 146.0

0,273,8

1,329.1 1,311.91,199.1

1,454.1 1,368.9

10.3% 10.3%8.5%

9.4% 9.8%

835.1 916.7 873.91,185.6 1,043.5

3Q11 4Q11 1Q12 2Q12 3Q12

Foreigners Individuals Institutionals %ofoverallmarket 43

BM&FSegmentAverage RPC growth


44/47

AverageRPCgrowth

OPERATINGHIGHLIGHTS

ADV(millionsofcontracts)andRPC(R$)

1 x 11:

+14.7%RPC

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

0.5

0.5

0.3 0.3 0.30.3

0.4

2.8 2.5 2.73.4

2.7

1.1061.157 1.172 1.133

.

BRLInt.Rates volumesbymaturities(%)

.

.

.

contracts;

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

. . .

3Q11 4Q11 1Q12 2Q12 3Q12

Int.RateBRL FX Indices Others RPC(BRL)

16%4%8%

22%

57%79% 68%

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

indices

(17.3%)

and

FX

(13.8%)

went

down65% 86% 90%

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

3Q11 2Q12 3Q12

1stMaturity 2ndMaturity 3rdMa turity 4thMaturity 5thMaturity

HFTs:

ADV

(thd contracts)

and

participation

of

volume (%)

,reductioninADVofFXandindicescontracts

93 12 x 2 12:

+12.0%RPC=>reflectingthedepreciationofR$/US$rate(6.5%)andreductionofdaytradeoperationsofBRLint.rates

178.7 224.0

24.4

24.8101.4

9.8

0.9

7.8% 7.2% 8.0% 6.3% 6.7%

419.5335.2

412.2 442.5342.2

300,0

400,0

500,0

. compare o eprev ousrecor oR$3.4millioncontractsin2Q12

68.2

50.9

46.5

68.7

58.3

148.3119.9 129.5 140.0 73.8

. . .

100,0

200,0

3Q11 4Q11 1Q12 2Q12 3Q12

Equitie s FX Minicontracts Others %inOverallVolume 44

NetincomeNet income impacted by a fall in financial income


45/47

Netincomeimpactedbyafallinfinancialincome

Adjustednetincomedidnotfullycapturetherevenuegrowthduetoaplungeininterestincome

EBITDAgrowthinlinewithoperatingincomegrowth

ADJUSTEDNET

INCOME EBITDA

27.9

(3.9) 14.1 375.6347.5+8.1%

(R$ million)(R$ million)

399.6

. 400.6

Adjustednet

income

etrevenues xpenses nanc a

Income

ncometax

Adjustednet

income3Q123Q11

FinancialIncome:3Q12vs.3Q11

9 R$45.5million, down44.9%

Financial

Revenue:

R$67.6

million,

down

33.7%

due

mainly

PERATIN IN ME

(R$ million)

+7.0%

.

.tolowerinterestrates

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

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

45

FinalRemarksBVMF better prepared to capture opportunities


46/47

BVMFbetterpreparedtocaptureopportunities

OPPORTUNITIESINBRAZILIANMARKETS

Newrealityof lowerinterestrates

MAINTAININGMARKET

INTEGRITY

Control,governance,transparency and

Capitalmarketssettobecomeamoreimportantalternativeforlongtermfunding

StrengtheningtheintegrityofBraziliancapitalmarketstargetinggrowth

WHATISBVMFDOING?

Investingintensivelyintradingandposttradingplatforms

Increasingfocus

on

customers

(brokers

and

investors):

revisiting

the

fee

structure,

investing

inproductdevelopment

EnsuringmarketintegritybyestablishingefficientcontrolsandstrengtheningBSM

WHATISALREADYHAPPENING!

Operatingleveragematerialization

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

High

potential

products

have

been

showing

strong

growth46


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bvmf presentation - january 2013

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