BVMF Presentation - January 2014

8/13/2019 BVMF Presentation - January 2014

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BM&FBOVESPA

Investor Relations Department

January 2014


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Forward Looking Statements

This presentation may contain certain statements that express the managements expectations, beliefs and

assumptions about future events or results. Such statements are not historical fact, being based on currently

available competitive, financial and economic data, and on current projections about the industriesBM&FBOVESPA works in.The verbs anticipate, believe, estimate, expect, forecast, plan, predict, project, target and other

similar verbs are intended to identify these forward-looking statements, which involve risks and uncertainties thatcould cause actual results to differ materially from those projected in this presentation and do not guarantee anyfuture BM&FBOVESPA performance.

The factors that might affect performance include, but are not limited to: (i) market acceptance of BM&FBOVESPAservices; (ii) volatility related to (a) the Brazilian economy and securities markets and (b) the highly-competitiveindustries BM&FBOVESPA operates in; (iii) changes in (a) domestic and foreign legislation and taxation and (b)government policies related to the financial and securities markets; (iv) increasing competition from new entrantsto the Brazilian markets; (v) ability to keep up with rapid changes in technological environment, including theimplementation of enhanced functionality demanded by BM&FBOVESPA customers; (vi) ability to maintain anongoing process for introducing competitive new products and services, while maintaining the competitiveness ofexisting ones; (vii) ability to attract new customers in domestic and foreign jurisdictions; (viii) ability to expand the

offer of BM&FBOVESPA products in foreign jurisdictions.All forward-looking statements in this presentation are based on information and data available as of the datethey were made, and BM&FBOVESPA undertakes no obligation to update them in light of new information orfuture development.This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shallthere be any sale of securities where such offer or sale would be unlawful prior to registration or qualificationunder the securities law. No offering shall be made except by means of a prospectus meeting the requirements ofthe Brazilian Securities Commission CVM Instruction 400 of 2003, as amended.


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HISTORY, BUSINESS MODEL AND CORPORATE GOVERNANCE

BRAZILIAN MARKET OPPORTUNITIES

MAIN GROWTH INITIATIVES

OPERATIONAL PERFORMANCE

FINANCIAL HIGHLIGHTS

APPENDIX (includes results for 3Q13)


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HISTORY, BUSINESS MODEL AND CORPORATE

GOVERNANCESafety, resilience and transparency


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5

1890:Foundation of Bolsa

Livre (BOVESPA's

predecessor)

1986:Start of

BM&F

activities

Aug 2007:BOVESPA Hld

demutualization

Sep 2007: BM&Fdemutualization

Oct 2007:BOVESPA Hld

IPO (BOVH3)

Nov 2007:BM&F IPO

(BMEF3)

May 2008:integration between BM&F and

BOVESPA Hld and creation of

BM&FBOVESPA (BVMF3)

1967:BOVESPAs

Mutualization

MARKET CAPITALIZATION (US$ billion) AND OPERATING MARGIN (%)

12M to Jun. 28, 2012; 12M to Mar 31, 2012 (Mar 31, 2013 for JPX); 9M to Sep. 30, 2012. Source: Bloomberg (Dec. 30 ,2013).

History of BM&FBOVESPAImportant global exchange

26.3 25.719.5 16.0

9.3 7.8 7.7 6.7 6.4 6.1 4.73.2 2.6

58% 61%71%

57%63%

28%

54%

41%

72%

56% 56%67%

35%

CME ICE-NYSE HKEx DeutscheBoerse

BVMF JPX LSE Nasdaq ASX SGX Moscow BME TMX

Oper. Margin (2012)Diversi fied and integrated Integrated (Derivatives) Diversif iedbut not integrated


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PRE-TRADING TRADING POST-TRADE

Access TradeAllocation

Transfer

Clearing/risk

analysis

Position/

CollateralDepository

Auxiliary

Services

VALUE CHAIN

Vertically integrated

Trading Platform: equities, derivatives, government and

corporate bonds, funds, spot FX, among others

Post-Trade Platform:

Central Counterparty (CCP) : An entity that interposes itself

between operations or contracts, becoming the guarantor of all

business

Settlement System (SSS): system that allows the transfer of

securities or assets from investors, in which the transfer may be

free or against payment

Central Depository (CSD): performs centralized asset custody and

treatment of corporate actions (dividends, stock splits, etc.)

Services for issuers and brokers Listing (stocks, funds, corporate bonds,

securitization, among other)

Trading access (brokers)

Securities Lending

Custody for clubs and foreign investors

(2.689 account)

Market Data (vendors)

Indices Licensing

Software Licensing

OTC (derivatives and fixed income)

Commodities certification

Vertical model as a differentialValue gained across most of the chain

SettlementRisk Analysis

(DMA)Risk Analysis


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DTCC

BRAZIL(Internalization of orders is forbidden)

US(Internalization of orders is allowed)

Post tradeCCP

SSS

CSD

Trading

Brokers

A and B

Investors Investors

Brokers A and B

Investors Investors

Broker

A

Broker

B

Model 100% vertical: clearing, settlementand central depository at the final beneficial

owner level

Brokers settle positions and control theirclients portfolios through BM&FBOVESPAs

infrastructure (impact on post-trade fees)

Clearing, settlement and custody occur at thebrokerage houses

Each prime broker has its own structure tocontrol its customers portfolios and settle

positions (impact on the prime brokerscosts)

Trading Venues

Vertical model as a differentialBM&FBOVESPA present at all post-trade stages


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Brokerage

houses &

investors

Trading

Post-Trade

Regulations prohibitinternalization of orders, dark poolsand ATS/MTFs and simultaneous exchange/OTC equities

trading

Settlement and clearing of equities trading must be donethrough a CCP

Settlement and clearing at the final beneficial owner level

make the Brazilian market safer and more resilient

Under the prevailing regulations, potential competitorsmust provide an integrated solution with the same statusregarding rules and transparency

In Brazil the final investor pays the exchange: compared to

other markets we have a competitive all-in-cost, as

BM&FBOVESPA provides more services than other

exchanges

Naked access is not allowed

Naked short selling is not possible

Brazilian market regulatory frameworkResilience and safety as priorities


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EXECUTIVE OFFICERSBOARD OF DIRECTORS

COMMITTEES

Edemir PintoCEO

Luis FurtadoCIO

Ccero VieiraCOO

Daniel SonderCFO

Eduardo GuardiaChief Product / IRO

Audit Committee

Risk Committee

Nominations and Corporate Governance Committee

Compensation Committee

Corporate GovernanceMultidisciplinary knowledge in conducting business

Charles CareyIndependent Director, Director of CME Group

Jos Roberto Mendona de BarrosIndependent Director, economist and professor

Pedro Parente (Chairman)Independent Director, CEO of Bunge Brasil

Marcelo Trindade (Vice Chairman)Independent Director, lawyer

Claudio HaddadIndependent Director, engineer and professor

Andr EstevesNon Executive Director, CEO of BTG Pactual

Alfredo Antnio Lima de MenezesNon Executive Director, Executive Officer of Bradesco

Luiz Fernando FigueiredoIndependent Director, Co-Founder of Mau Investments

Luiz Nelson Guedes De CarvalhoIndependent Director, professor

Candido BracherNon Executive Director, CEO of Ita BBA

Jos Berenguer Neto

Non Executive Director, CEO of JP Morgan Brazil

Advisory Committee For The Securities Intermediation Industry


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GM of Apr. 15, 2013

Number of individual shareholders 55,108

Number of institutional shareholders 3,580

Total number of shareholders 58,688

Free float (ON) 1,929,265,010 (97.4%)

Ownership structureWidely-held shareholder base

5.3%8.4%

5.1%

6.6%

70.3%

4.4%

Funds managed by BlackRock, Inc.

Funds managed by OppenheimerFunds, Inc.

CMEG Brasil I Participaes Ltda.

Funds managed by Vontobel Asset Management Inc.

Other

Treasury stock


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BM&FBOVESPAs Sustainability PolicyApproved by the Board of Director


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BRAZILIAN MARKET OPPORTUNITIES

Main growth drivers


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13.2511.25

13.75

8.7510.75 11.00

7.2510.00

2007 2008 2009 2010 2011 2012 2013

Opportunities in the Brazilian marketBM&FBOVESPA prepared to capture future growth

Source : Central Bank of Brazil. * For Brazil, considers only bank credit.

GROWTH DRIVES

EQUITIES MARKET

Porfolio diversification => opportunity for diversification of investmentsof institutional investors in equities

more resources being directed into equities

more listed companies

DERIVATIVES MARKET

more credit and more in fixed-rate government debt => more demand

for hedging from financial institutions

more foreign trade=> higher volumes in FX contracts

stock market growth, the launch and development of ETFs and moreexposure to equity among institutional investors =>growth in Index-basedcontracts

CAPITAL MARKETS WILL HAVECENTRAL ROLE IN THE COMING YEARS

Investmentneeded topromotegrowth

Nationalsavings still

highlyconcentrated

in fixedincome

Fall ofinterest ratesin real terms

Total Credit/GDP Evolution in Brazil (%) Selic Interest Rate (% p.a.).Jan-07 to Nov-13

27.4%

55.4%

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


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168216 256

295352

436 419492

538 574642

630

28%29% 30%

31%33% 37% 28%

33%33%

30%29% 29%

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

Fixed Income and Others

Equity

Capital MarketGreat opportunities in the equities and derivatives segments

Funds AUM evolution (in BRL billion). Global average of 40% for

equities

LISTED COMPANIES

Source : BM&FBOVESPA, ANBIMA , WFE (Dec-12) and ABRAPP. *Updated to Jun/13

INVESTMENT FUNDSNUMBER OF CUSTODY ACCOUNTS (thousand)

PENSION FUNDS

Number of retail investors represents only 0.3% of the

population (lower than global average)

Lower number of listed companies in comparison withother countries

Participation of equities in the portfolio of pension funds

6,856

4,916

4,041 3,9723,481 3,200

2,7672,056 1,784

364

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

657861 899

1,0701,301

1,5131,375

1,703 1,7871,925

2,189 2,344

11%

10% 11%11%

15%22% 14%

18% 18%15%

14% 13%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2Q13

Equities

Fixed Income

*

Jan'05

128.6

Dec'13

617.6

Jan-0

5

Jul-05

Jan-0

6

Jul-06

Jan-0

7

Jul-07

Jan-0

8

Jul-08

Jan-0

9

Jul-09

Jan-1

0

Jul-10

Jan-1

1

Jul-11

Jan-1

2

Jul-12

Jan-1

3

Jul-13


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MAIN GROWTH INITIATIVES

Investments, new products and focus on thecustomer


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Update of strategic projects

*IPN/CORE implementation requires the authorization of the regulators.

PUMA Trading System - Multi-Asset Trading Platform A high-performance, high-speed and high-capacity electronic trading platform

RTT (Round Trip Time) of less than one millisecond

Derivatives and FX module: implemented in Oct/11

Equities module: implemented in Apr/13

Clearinghouses integration The integration of BM&FBOVESPAs clearinghouses will enhance the Companys competitive position

Development of the new risk architecture (CloseOut Risk Evaluation - CORE)* will increase allocation

efficiency for clients

Tests for derivatives started in Jul/13, with conclusion scheduled for Mar/14

iBalcoOTC Registration Platform Registration of OTC derivatives and fixed income securities

Deployment in Jul/13 (for FX non-deliverable forward no central counterparty)

Pricing Policy Changes for Cash Equities First phase (Apr/13): reduction from 0.7 bps to 0.5 bps in trading fees and a realignment between the

trading fees and post-trade fees of institutional investors and day traders

Second phase (Dec/13): increased discounts per tier of volume for day traders and a progressive reductionof trading fees per tier of global volume

Initiatives for Small and Medium Enterprises (SMEs) Establishment of the Technical Committee for Smaller Offerings composed of private sector and

government agencies

Developing proposals to facilitate capital raising through issuance of shares (incentives to SMEs, investors

and intermediaries)

Project was presented to the Ministry of Finance in Jul/13


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BM&FBOVESPA IT DevelopmentsBuilding a world-class IT platform

Increasing competitive differentiation for derivative andcash equity markets

LATENCY

BM&F Segment (derivatives) BOVESPA Segment (equities)

70

2520

10-15~1 ~1


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Clearinghouses IntegrationFurther differentiation in BM&FBOVESPA post-trade

Equities and corporate

debt (BRL 76.5 bn*)

Equities, ETFs andcorporate fixed incomecash market

Equity and indicesderivatives (options andforward)

Securities lending

Derivatives

(BRL 119.3 bn*)

Financial andcommodities derivatives(futures, options andforwards)

OTC derivatives

FX(BRL 4.9 bn*)

FX spot market

(US$ vs. BRL )

Securities(BRL 0.8 bn*)

Cash market andforward market forgovernment bonds

INTEGRATED CLEARINGHOUSE**=

Capital efficiency

* Aggregate of pledged collateral at our clearinghouses totaled BRL 201.4 billion in Sep 30, 2013. **IPN/CORE implementation requires the authorization of the regulators.


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Product and Market DevelopmentListed products, OTC and fixed income

LISTED PRODUCTS

iBALCO PROJECT

ETFs(exchange traded funds):Equities, fixed

income, international and real estate funds

Market maker:cash equities, options,commodities, futures

Ibovespa:methodology review

SMEs (small and medium enterprises):BOVESPA Mais

Incentive programs: retail investors

Selic derivatives: Selic futures (OC1), FX

spread (DCO), FX swap (SCS)

Options on single stocks: New fee policy forHFTs/day traders

Futures Contracts: Ethanol

BDRs: To Exchange from OTC

Securities Lending: BTC platform

Derivatives Registration:

NDFs: deployed in Jul/13

Flexible options on single stocks

COE: Structured Notes

Swaps

Fixed Income Registration:

LCAs (Agribusiness Credit Bill): improvements

LCIs (Real Estate Credit Bill) and CDBs (timedeposits): adaptation of the platform (pendingregulatory approval)

Corporate bonds and LFs (financial bills): changes tolisting rules and procedures

Trade of Fixed Income:

Trading platform for government and corporatebonds and changes to the fee policy

h h


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18.6 28.548.7

115.999.3

2009 2010 2011 2012 2013*

48.870.1

ADTV beforeMarket Maker

ADTV afterMarket Maker*

12.720.5

30.2 31.940.8

2009 2010 2011 2012 2013*

2.9 3.96.1

9.0 9.7

2009 2010 2011 2012 2013*

Securities LendingReal Estate Funds (FIIs)Options with Market Maker

(Open Interest - average for the period - in BRL billion)

Initiatives to develop and prompt higher volume in certain products;

Performance shows that the initiatives are being well received by the market.

ETFs Brazilian Treasury Direct - Tesouro Direto Agribusiness Credit Bills

(ADTV in BRL million)

+43.8%

(ADTV in BRL million)

(ADTV in BRL million) (Custody in BRL billion)

High growth productsGrowing sophistication of market participants

BM&FBOVESPA has a 74% marketshare of the registered AUM (Sep-13).

CAGR(09-13):

+141.5%

CAGR (09-13):

+33.8%

CAGR (09-13):

+52.0%

CAGR (09-13):

+35.2%

*Updated to Dec. 30, 2013. **Updated to Sep. 30, 2013

(AUM in BRL billion)

*

3.6 20.0

52.0

2011 2012 Sep-13

0.9 1.53.7

14.6

31.7

2009 2010 2011 2012 2013*


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OPERATIONAL PERFORMANCE

Records in 2013

BOVESPA S


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BOVESPA SegmentOperational highlights

*Updated to Dec 30, 2013. **Ratio of cash market trading volume to the market cap of the exchange.

AVERAGE DAILY TRADING VOLUMEADTV (BRL billion)*

AVERAGE ANNUAL MARKET CAP(BRL trillion) TURNOVER VELOCITY** (12 months average*)

*

*

1.2 1.6 2.4

4.9 5.5 5.36.5 6.5 7.3 7.4

7.9 7.3 7.8 7.4 8.2 7.78.9

6.08.5

7.2 6.6 7.0 6.2

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13

30.8%

29.4%

36.8%37.6%38.7%42.3%

56.4%

63.2%

66.6%

63.8%

64.2%

70.0%72.9%

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

T di i ADR f B ili i


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Trading in ADRs of Brazilian companiesLiquidity migration process interrupted

Dec13

Source: Bloomberg (in USD

traded value of 35 companies

with ADRs programs )

Sarbanes-Oxley Act

(Jul. 2002)

*Updated to Dec. 30, 2013.

Novo MercadoLaunch

(Dec. 2000)

PUBLIC OFFERINGS IN NUMBER OF COMPANIES

End of IOF Tax (2%) forforeign investors

(Dec. 2011)

End of CPMF(Financial

Transaction Tax)

30.9%

22.6%

19.7%

26.8%

46.5%

53.5%

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

IPOs - 1 - 7 9 26 64 4 6 11 11 3 10 152

Follow ons 14 5 8 8 10 16 12 8 18 11 11 9 7 137

Total 14 6 8 15 19 42 76 12 24 22 22 12 17 289

Dual Listings - - - 2 1 1 - - 1 - - - - 5

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Jan-1

3

Feb-1

3

Mar-13

Apr-13

May-1

3

Jun-1

3

Jul-13

Aug-1

3

Sep-1

3

Oct-13

Nov-1

3

Dec-1

3

Other USA Venues - Brazilian ADRs NYSE - Brazilian ADRsBM&FBOVESPA - companies with ADRs BM&FBOVESPA (except companies with ADRs)

BM&F S t


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BM&F SegmentOperational highlights

AVERAGE DAILY TRADED VOLUMEADV (thousands of contracts)

REVENUE PER CONTRACT - RPC (BRL)

*Updated to Dec. 30, 2013.

2006 2007 2008 2009 2010 2011 2012 2013* D-12 J-13 F-13 M-13 A-13 M-13 J-13 J-13 A-13 S-13 O-13 N-13 D-13

Interest rates in BRL 0.906 0.950 1.141 0.979 0.889 0.918 1.004 1.046 1.037 1.032 1.013 1.037 0.945 0.843 1.099 1.067 1.112 1.222 1.203 1.115 1.266

FX rates 2.244 1.859 2.065 2.161 1.928 1.894 2.205 2.535 2.453 2.368 2.305 2.273 2.292 2.347 2.590 2.691 2.731 2.720 2.624 2.611 2.832

Stock Indices 1.419 1.501 2.145 1.620 1.564 1.614 1.524 1.761 1.981 1.547 1.974 1.413 1.846 1.408 1.867 1.590 1.938 1.656 1.816 1.664 2.122

Interest rates in USD 1.094 0.965 1.283 1.357 1.142 0.941 1.015 1.231 1.152 1.073 1.140 1.121 1.093 0.928 1.280 1.370 1.309 1.412 1.246 1.359 1.340

Commodities 4.749 3.195 3.587 2.307 2.168 2.029 2.239 2.534 3.360 2.449 2.415 2.382 2.349 2.550 2.595 2.632 2.385 2.766 2.613 2.430 2.760

Mini contracts 0.034 0.054 0.162 0.176 0.128 0.129 0.116 0.119 0.112 0.120 0.122 0.119 0.118 0.116 0.119 0.114 0.117 0.126 0.120 0.120 0.128

OTC 1.571 2.111 2.355 1.655 1.610 1.635 1.769 1.409 2.475 1.988 2.868 1.642 1.460 1.428 1.418 1.839 1.160 1.477 1.118 1.266 0.978

Total RPC 1.247 1.224 1.527 1.365 1.134 1.106 1.191 1.282 1.303 1.266 1.191 1.190 1.114 1.020 1.361 1.320 1.397 1.511 1.418 1.367 1.575

422 501 711988 789 843

1,684 1,797 1,926 1,857 1,856

1,561

2,6302,235

2,694 2,944

1,977

1,5191,713

1,239 1,209 1,457 1,179110 168266

473535 447

541 496494 494 547

474

494491

468507

635

435541

502 420481

497

86 74

68

112 88 80

89 123143 114 113

84

126

100

145105

183

99146

90 10275

106

187109

124

167162 150

191 285336 383 340

290

341

341

352424

495

389434

351 385405

392

805 8521,167

1,740 1,573 1,521

2,505 2,7012,899 2,848 2,856

2,410

3,5913,166

3,6583,980

3,290

2,4432,835

2,1822,116 2,418

2,174

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013* Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13

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

I t ti i ti i l


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Investor participation in volumesEquities and derivatives segments

BM&F SEGMENT (DERIVATIVES)

BOVESPA SEGMENT (EQUITIES)

25% 25% 23% 27% 31% 26% 21% 18% 15% 17% 16% 18% 15% 16% 13% 16% 14% 15% 15% 15% 13%

27% 27% 30% 27%26% 33%

33% 32% 33% 35% 33% 32% 32% 32% 33% 32% 34% 32% 33% 32% 32%

33% 36% 35% 35% 34%30% 35% 40% 44% 40% 41% 43% 42% 44% 44% 45% 42% 46% 44% 47% 46%

12% 10% 10% 8% 7% 8% 9% 8% 7% 8% 9% 7% 9% 7% 8%6% 9% 6% 6% 5% 7%

2005 2006 2007 2008 2009 2010 2011 2012 2013 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13

Individuals Institutional Investors Foreign Investors Financial Institutions Companies Others

56% 51% 49% 48% 45% 42% 38% 34% 32% 33% 29% 31% 32%37% 32% 34% 30% 32% 33% 34% 30%

12% 15% 17% 19% 20% 22% 23% 25% 25% 23% 25% 26% 26%26%

25% 23% 25% 26% 25% 25% 28%

24% 25% 23% 23% 24% 30% 33% 34% 36% 38% 41% 38% 37% 32% 36% 35% 37% 33% 34% 34% 35%

7% 7% 9% 8% 8% 4% 4% 5% 5% 4% 3% 4% 4% 4% 5% 6% 6% 6% 7% 5% 5%

2005 2006 2007 2008 2009 2010 2011 2012 2013 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13

Individuals Institutional Investors Foreign Investors Financial Institutions Companies Central Bank


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FINANCIAL HIGHLIGHTS

Reduction in expenses. Return to shareholders

Income Statement


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Income StatementHistory

SUMMARY OF INCOME STATEMENT (CONSOLIDATED)

(in BRL thousand) 2009 2010 2011 2012

Net revenue 1,510,569 1,898,742 1,904,684 2,064,750

Expenses (569,832) (633,504) (816,664) (763,080)Adjusted expenses (446,677) (543,881) (584,521) (563,487)

Operating income 940,737 1,265,238 1,088,020 1,301,670Operating margin 62.3% 66.6% 57.1% 63.0%

Equity method result - 38,238 219,461 149,270

Financial result 245,837 289,039 280,729 208,851

Income before taxation of profit 1,186,574 1,592,515 1,588,210 1,659,791

Income tax and social contribution (304,505) (448,029) (539,681) (585,535)

Net income* 881,050 1,144,561 1,047,999 1,074,290

Adjusted net income 1,223,761 1,586,374 1,545,627 1,612,136

Adjusted EPS (BRL ) 0.6104 0.7929 0.7932 0.8351

*Attributable to shareholders of BM&FBOVESPA.

Revenue and Expense breakdowns


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REVENUE BREAKDOWN (3Q13)

Gross Revenue:BRL 596.8MM

Revenue and Expense breakdownsDiversified revenue sources as a differential, costs under control

EXPENSE BREAKDOWN (3Q13)

Expense:BRL 194.1MM

Adjusted Opex* Budget


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Adjusted expenses increase below inflation Focus on expenses control offset most of the inflationary adjustments over the past years

Considers the mid-point of 2013 and 2014 budgets; IPCA in 2014 based on market expectations released by the Central Bank in Dec. 13, 2013;

Considers the mid-point of 2014 budget.

2013 budget reaffirmed

2013e vs 2012: 1.2%

IPCA 2013e: 5.70%

2014e vs. 2013e: 6.1%

IPCA 2014e: 5.95%

CAGR 2010-14e: 2.7%

IPCA 2010-14e: 6.0%

Adjusted Opex* BudgetFocus on cost control

*Adjusted to Company s depreciation, stock options plan, tax on dividends from the CME Group and provisions.

Capex Budget


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Review of the 2014 Capex budget Impacted by some projects that were revisited and FX rate

2013 budget reaffirmed

Review of 2014 budget: to R$230260 million from R$170200

million FX rate exposure of ~25%

Update of the clearinghousesintegration project

Deepening initiatives (securitieslending, market makers, pre-trade risk

controls, among others)

Capex is expected to decline from2015

2015e: R$190220 million

Capex BudgetInvestments phase

Growth Path


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(in BRL million)

(in BRL)

GROWTH IN ADJUSTED EARNINGS PER SHARE

GROWTH IN REVENUES AND RESULTS

Growth PathGrowth in business and results

Financial Highlights


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7051,145 912 1,074

75

435 606 16780

1,579 1,518

1,091

2009 2010 2011 2012

Total payout Buyback

Financial HighlightsFocus on cash generation and total shareholder return

HISTORY OF PROCEEDS

SHARE BUYBACK: MAXIMIZING RETURN

(in BRL millon)

(in BRL million)

*Dividend Yield is the result of the sum of earnings per share distributed during the year divided by the average share price during the year. ROIC: Return on Invested Capital.

1,612Adj. Netincome

1,5461,5861,224

1,074 Net income1,0481,145881

432841 762 984

274

304150

90705

1,145912

1,0743.4%

4.5%4.5%

4.8%80%

100%87%

100%

2009 2010 2011 2012

Dividends Interest on capital Dividend Yield* Payout ratio (%)

8.9% ROIC8.4%9.4%8.3%

Financial Soundness


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Sound financial position - an important factor for the Company, given itsrole as CCP, guaranteeing the settlement of trades executed by global

and Brazilian investors

Standard & Poor sBBB+ (counterparty credit rating)

A-2 (issuer)

Moody sA3 (global scale issuer)A3 (Brazilian local currency issuer)

Baa1 (global notes)

R$ million Dec/10 Dec/11 Dec/12 Sep/13

Available funds 1,677 1,582 1,964 1,960

Indebtedness 1,043 1,172 1,279 1,375

R$ million

CASH POSITIONSOUND FINANCIAL POSITION

*Includes collateral pledged by participants in the form of cash, receivables and rights in securities under custody, as well as payouts still undisbursed.

**Includes third party collateral and restricted funds at BM&FBOVESPA Settlement Bank (Banco BM&FBOVESPA).

Financial SoundnessHigh liquidity and low indebtedness


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35

Different earnings impact the P/E calculation and distort comparisons and market consensus

The reported adjusted net income reflects better the companys cash generation

1 Excludes the investment in associate (CME Group) accounted under the equity-method. 2Simulates the Interest on Capital amount that would be approved if there was no goodwill tax

benefit; 3Stock at R$13.79 (March 12th, 2013).

EPS 2012 P/E3

Estimated GAAP EPS (A) 0.56 24.8

Earnings without goodwill = (A) x :1,142 0.64 21.7

Stock price discounted by goodwill NPV(R$1.00 per share) / Earnings without

goodwill0.64 20.1

Adjusted Earnings 0.84 16.5

15-20% impact on P/E multiple

Difference between GAAP EPS andthe EPS adjusted to non existence of

goodwill simulation

GAAP Book in 2012Current

Simulation withoutgoodwillR$ millions

EBT 1,511 1,511

Deferred Tax 539 -

Other taxes /credits (14) -

Total taxes 525 282

GAAP Net income 1,074 1,228 : 14.2%

Tax Book in 2012Current

Simulationwithout goodwill

R$ millions

EBT 1,511 1,511

(-) Goodwill amortization 1,586 -

(-) Interest on capital 90 680(2)

(=) Taxable earnings (165) 831

Tax (34%) (56) 282

Since 2009, the goodwill tax benefit has been recognized as deferred liability (being cashneutral), reducing the GAAP earnings

Financial HighlightsP/E analysis

BOVESPA Segment


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4.3 8.5 15.1 14.526.8 22.2

63.2

10.8 9.3 5.74.55.4

15.4

55.67.5 23.8

11.2

7.2 3.917.38.8

13.9

30.4

70.1

34.3

46.0

74.4

18.0 13.2

23.0

2004 2005 2006 2007 2008 2009 2010* 2011 2012 2013

Follow-On

IPO

PUBLIC OFFERINGS (BRL billion)

PIPELINE: OFFERINGS ANNOUNCED SO FAR TO THE MARKET

Updated to Dec. 30, 2013.

BOVESPA SegmentRaising Capital

There are 3 offerings in the pipeline

IPOs (2): Ouro Verde Locao e Servio; Unidas;

Follow-ons (1): Fras-le;

Additionally, there are 12 Real Estate Funds filed with CVM: estimated value of R$ 2.8 billion

* Excludes the portion acquired by the Brazilian government in the Petrobras offering, via the transfer of rights in barrels (BRL 74.8 billion).

BOVESPA Segment


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BOVESPA SegmentForeign investment flow

MONTHLY NET FLOW OF FOREGIN INVESTMENTS (in BRL billon)

Includes public offering (primary market) and regular trades (secondary market).

*Updated to Dec 30, 2013.

BOVESPA Segment


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177%

126% 121%

109%100%

136%

67%75%

87%72%

129%

100%

39%

174%

137%

158%

119%107%

129%

75% 76%

96%

72%

138%

80%

44%

129%

110% 109% 104%

89% 87%

60% 57% 55% 50% 49% 46%35%

151%

111% 117% 119%105%

85%

62%70% 69%

55%

124%

44% 45%

Cingapura Canad Chile EUA Coria Austrlia Japo Frana ndia Brasil Inglaterra China Mxico

2009 2010 2011 2012

11.2%

14.3%

2.2%

5.1%

20.4%

5.4%

0.4%5.5%

8.8%

26.8%

Oil, Gas and Biofuels Basic Materials Capital Goods and Servic es Construction and TransportationConsumer Non Cyclical Consumer Cyclical Information Technology Telecommunic ationsPublic Utilities Financial

15.7%

21.6%

2.5%

3.6%

8.6%

2.6%

0.3%11.1%

11.5%

22.4%

BOVESPA SegmentPotencial to increase the number of listed companies

MARKET CAPITALIZATION TO GDP (%)*

MARKET CAPITALIZATION BY ECONOMIC SECTOR * Source: World Bank

Dec05 Dec12

Hong Kong : 438% 481% 365% 421%

l k


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39

CLEARINGHOUSES ACTIVITIES

Law 10.214 of Mar. 27, 2001 Clearinghouses considered systemically important by

the BCB should ensure settlement (i.e., act as CCPs)

BCB Resolution 2.882 of Aug. 30, 2001

Clearinghouses shall guarantee, at least, settlement

of the highest net amount owed

Access criteria must be public and allow wide

participation

Circular BCB 3.057 of Aug. 31, 2001

Rules, manuals and safeguard mechanisms must be

approved by BCB

Maintenance of a secondary data center and

contingency procedures

Supervision by BCB

CVM Instruction 441 of Nov. 10, 2006

Securities lending with guaranteed settlement - final

beneficiary model

STOCK EXCHANGE ACTIVITY

CVM Instruction 461 of Oct. 23, 2007

Regulates the security markets and

decides on the formation, organization,

operation and dissolution of stock

exchanges, futures and commodities

exchanges and OTC markets

Establishes the organization and

minimal corporate governance

structure of organized market

management bodies

Establishes self-regulation activities ofthe in the organized market

management bodies

Regulatory Framework

BM&FBOVESPA Market Supervision (BSM)


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AuditMarket

supervision

Analysisand

strategyLegal dept.

Selfregulation

Officer

Supervision Board(12 members*)

StrategicCommittee

Atribuies da BSM estabelecidas na

Instruo CVM 461/2007:

Monitor and supervise transactions in

the organized markets

Determine deficient compliance with

the rules and norms

Monitor the activities of the Stock

Exchange

Initiate and prosecute disciplinary

administrative legal proceedings

Apply penalities

Main activities of BSM Organizational chart

Monitor 100% of the participants

transactions

Assess 100% of intermediaries

Enforcement Education

BSM duties established in CVM Instruction461/2007

BSM is is a not-for-profit association organized as a self-regulatory and market surveillanceorganization, responsible for regulatory and oversight activities relative to the markets we operate.

* 9 independent

BM&FBOVESPA Market Supervision (BSM)Self-Regulation Entity


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41

RESULTS FOR 3Q13

3Q13 vs. 3Q12 Highlights


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Total revenue:R$596.8 million, +2.7%

BOVESPA seg.: R$257.1 million, -2.4% BM&F seg.: R$228.6 million, +4.3%

Other revenue: R$111.0 million, +12.5%

Net revenue:R$535.4 million, +2.6%

Adjusted expenses:R$150.2 million, +10.4%

Operating income: R$341.3 million, -1.6%

Adjusted net income:R$403.7 million, +0.8%

Adjusted EPS:R$0.211,+1.7%

Dividends:payment of R$225.3 millionin 3Q13, R$0.118per share (80% of GAAP net income)

EBITDA: R$417.1 million, +2.2% and margin of 77.9%(according to CVM Rule 527/12 that does not exclude equity methodaccounting).

BOVESPA segment:

ADTV: R$7.2 billion, +0.8% Margin: 5.361 bps, -6.4%

BM&F segment:

ADV: 2.5 million contracts, -7.5%

RPC: R$1.404, +10.6%

High growth products and market segment:

Securities Lending: +26.0% average of open interest LCAs (agribusiness credit bills): assets registered

+190.6% (R$73.8 billion in Sep/13)

HFTs: volumes increased 32.8% in the Bovespa Segmentand 19.6% in the BM&F segment

MAIN PROJECTS AND UPDATES

3Q13 vs. 3Q12 HighlightsSolid results despite the challenging environment

FINANCIAL HIGHLIGHTS OPERATIONAL HIGHLIGHTS

1Expenses adjusted to Companys depreciation, stock options plan, tax on dividends from the CME

Group and provisions.2Net income adjusted by: i) the e ffect of deferred liability recognition in connection with temporary

differences from amortization of goodwill for tax purposes; ii) the impact of the stock options plan;iii) investment in affiliates (CME Group) accounted for under the equity method, net of taxes; and

iv) taxes paid overseas to be compensated.

Ibovespa: new methodology announced in Sept/13

Changes in options fee policy: volume discounts for all daytrade transactions in the options on single stock market, inline with the change announced for cash equity in Mar/13

Fixed income fee policy: changes regarding new issuancesanalysis, custody, account maintenance and trading

SMEs: proposals for developing the access market

BOVESPA Segment Performance


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3Q13 vs. 3Q12:

ADTV: R$7.2 bn (+0.8%): Increased turnover velocity, which reached 73.7%

32.8% increase in HFTs volumes

2.2% decrease of average market capitalization

Margin: 5.361 bps vs. 5.728 (-6.4%):

Lower fees from options on single stocks, reflectinghigher volumes of market makers

Higher participation of HFTs in the overall ADTV

AVERAGE DAILY TRADING VALUE (ADTV) AND TRADING MARGIN

BOVESPA Segment PerformanceFlat ADTV despite the challenging environment

AVERAGE MARKET CAP. AND TURNOVER VELOCITY

7.2 7.0 7.5 8.3 7.2

5.728 5.573 5.706 5.314 5.361

3Q12 4Q12 1Q13 2Q13 3Q13

ADTV (R$ billions) Margin (bps)

TRADING MARGIN (in basis point - bps)

Market 3Q13 3Q12

Cash market 4.989 5.308

Derivatives on single stocks 13.007 13.788

Options Market 13.010 14.091

Forward Market 12.998 12.999

Total BOVESPA 5.361 5.728

BM&F Segment Performance


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3Q13 vs. 3Q12:

ADV: 2.5 million contracts (-7.5%): -15.4% ADV of Brazilian Real interest rate contracts,

+8.8% ADV of FX contracts and +22.3% ADV of mini-sized contracts

RPC: +10.6% (mix effect and FX rate appreciation):

Brazilian Real interest rate: lower participation inoverall volume; and higher RPC (+4.8%) due to

lengthening of contracts

FX and USD Interest rate contracts (+12.4% and+25.0%, respectively): FX rate appreciation (USD/R$)

AVERAGE DAILY VOLUME (ADV) AND AVERAGE REVENUE PER CONTRACT (RPC)

& Seg e t e o a ceHigher RPC offsets volumes fall

INTEREST RATES IN R$ - ADV BY MATURITY

(in millions of contracts)

(in millions of contracts)

REVENUE PER CONTRACT AND FX RATE

(in R$) ~45% of derivatives revenue was priced in USD in 3Q13

*Average FX rate (R$/US$) in the quarter, considering the closing price for each month.

Revenue Breakdown in 3Q13


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6.2%

31.4%

4.6%

18.1%

14.4%

2.3%

2.8%

20.2%

37.6%: Financial/Commodity Derivatives2

37.6%: Cash Market

6.2%: Trading

31.4%: Post-Trade

4.6%: Stock and Indices Derivatives2

Total RevenueR$596.8 million

4.3%: Securities Lending

5.1%: Depository, Custody and Back-Office

3.0%: Vendors

1.9%: Trading Access

2.0%: Listing

20.2%: Other Revenues

QDiversified revenue sources as a differential

REVENUE BREAKDOWN

Revenue breakdown for the cash market (trading + post-trade) reflects the pricing policy

changes which came into force in Apr/13.

i) Reduction of trading fee to 0.5 bps from 0.7 bps for all investors

ii) Post-trade increase to 2.0 bps from 1.8 bps for institutional investors and day trades2Trading and Post-trade

CASH MARKET TRADING REVENUE

ACCOUNTED FOR6.2% OF TOTAL

DERIVATIVES REVENUES

(BM&F + BOVESPA) ACCOUNTED FOR42.2% OF THE TOTAL

18.1%: Brazilian Real interest rate contracts

14.4%: FX Contracts

2.3%: USD interest rate contracts

2.8%: Other Financial/Commodity Derivatives

The Business Model Strengthens


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The Business Model StrengthensResilience from diversified revenue sources

Bovespa Segmentnew clients, products development and higher market sophistication

BM&F Segmentcredit expansion, volatility, FX rate changes and market sophistication

Other revenuedevelopment of markets and new products and services

CAGR2009-13

8.7%

Revenuesin R$ millions

Revenuesin R$ millions

CAGR2009-13

15.5%

CAGR2009-13

9.6%

Revenuesin R$ millions Revenues have been supported bya higher turnover velocity

- HFTs

- Options on single stocks

- Securities lending activity

- Strategies

Revenues from the two mostsignificant groups of contracts aregrowing consistently

- Market sophistication, volatilityand the recent currencydepreciation

Revenues from selected productsgrowing consistently

- Sec. lending also complementscash, option and future markets

- Tesouro Direto and LCAs as partof the Companys strategy in

the fixed income market

3Q13 Expenses


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Expense:R$194.1million

Q pContinuous focus on cost control and operational efficiency

ADJUSTED EXPENSETOTAL EXPENSE BREAKDOWN

(in R$ millions)

*Includes expenses with maintenance in general, marketing, communication, taxesadjusted by the dividends from CME Group, board and committee members

compensation and others (excluding provisions).

ADJUSTED EXPENSE INCREASED 10.4% OVER 3Q12 IN LINEWITH THE 2013 BUDGET (R$560-580 MILLION)

Adjusted Personnel: +16.9%, basically due to the effects of annual

union bargain in Aug/13 and decrease in capitalized personnelcosts related to ongoing projects.

Data processing: +31.8%, due to higher expenses for services andmaintenance of software and hardware that support IT platformsrecently deployed.

Third Party: -34.8%, due to lower costs with consulting and legaladvisors.



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48*Includes collateral pledged by participants in the form of cash, receivables and rights in securities under custody, as well as payouts still undisbursed.

**Includes third party collateral and restricted funds at BM&FBOVESPA Settlement Bank (Banco BM&FBOVESPA).

g gReturning cash to shareholders

(In R$ millions)

CASH AND FINANCIAL INVESTMENTS RETURN TO SHAREHOLDERS

FINANCIAL RESULTS

Financial result of R$49.6million, up 8.9% YoY

Financial income up 16.9%, reflecting, basically higherinterest rates

Financial expenses rose 33.4%, reflecting the currencydepreciations impact on the interest of notes issuedoverseas

CAPEX

In 3Q13, investments amounted to R$82.1 million,totaling R$202.5 million in 9M13

CAPEX budget ranges:

2013:between R$260290 million

2014:between R$170200 million (under review)

BUYBACK PROGRAM

From Jul/13 to Oct/13, 13.1 million shares wererepurchased, totaling R$158.9 million (more than0.6% of the Companys capital stock)

The current buyback program allows BM&FBOVESPAto repurchase up to 60 million shares until Jun/14.

PAYOUT

Payment of R$225.3 million in dividends, equivalentto R$0.118 per share and 80% of GAAP net income

Payment on Nov. 27, 2013 based on shareholdersposition dated Nov. 11, 2013

Market participant cash collateral includes R$0.7 billionpledged in the FX Clearinghouse that was settled onOct 1st, 2013.

High growth products


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49

g g pIncreasing revenue diversification

CAGR: +39%

OPERATIONAL FIGURES REVENUE

CAGR: +181% CAGR: +27%

CAGR: +56% CAGR: +35%

CAGR: +280% CAGR: +37%

Strong revenue growth of selected

products

In 9M13, representing 7.6%of totalrevenue, or R$141.4 million

Products well received by clients

Continuous developments to maintainstrong growth trend

Summary of Balance Sheet (Consolidated)


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Summary of Balance Sheet (Consolidated)

LIABILITIES AND SHAREHOLDERS EQUITYASSETS

(in R$ millions) 9/30/2013 12/31/2012 (in R$ millions) 9/30/2013 12/31/2012

Current assets 3,940.9 3,536.3 Current liabilities 2,287.1 1,660.6

Cash and cash equivalents 754.7 43.6 Collateral for transactions 1,617.9 1,134.2

Financial investments 2,978.6 3,233.4 Others 669.2 526.4

Others 207.6 259.3 Non-current liabilities 3,667.3 3,072.6

Non-current assets 21,351.2 20,610.8 Debt issued abroad 1,357.0 1,242.2

Long-term receivables 1,040.3 808.9 Deferred inc. tax and social contrib. 2,156.6 1,739.6

Financial investments 764.5 573.6 Others 153.7 90.7

Others 275.8 235.2 Shareholders' equity 19,337.6 19,413.9

Investments 3,270.0 2,928.8 Capital 2,540.2 2,540.2

Property and equipment, net 391.8 361.0 Capital reserve 16,051.5 16,037.4

Intangible assets 16,649.1 16,512.2 Others 730.1 820.3

Goodwill 16,064.3 16,064.3 Non-controlling interests 15.8 16.0

Total Assets 25,292.1 24,147.1 Liabilities and Shareholders' Equity 25,292.1 24,147.1

Reconciliation 3Q13


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Reconciliation 3Q13

ADJUSTED NET INCOME RECONCILIATION

ADJUSTED EXPENSES RECONCILIATION

* Attributable to BM&FBOVESPA shareholders.

(in R$ millions, unlessotherwise indicated) 3Q13 3Q12 Change

3Q13/3Q122Q13 Change

3Q13/2Q13

GAAP net income* 281.6 276.5 1.8% 350.8 -19.7%

Stock options plan 5.6 7.8 -28.0% 7.8 -28.1%

Deferred tax liabilities 138.9 134.8 3.1% 138.9 0.0%

Equity in income of investees (net of taxes) 38.2 32.6 17.4% 46.3 -17.4%

Recoverable taxes paid overseas 15.8 14.1 11.7% 18.3 -13.7%

Adjusted net income 403.7 400.6 0.8% 469.6 -14.0%

(in R$ millions, unless

otherwise indicated) 3Q13 3Q12Change

3Q13/3Q12 2Q13Change

3Q13/2Q13Total Expenses 194.1 174.8 11.1% 176.8 9.8%

Depreciation (32.5) (24.1) 35.0% (28.8) 12.8%

Stock options plan (5.6) (7.8) -28.0% (7.8) -28.1%

Tax on dividends from the CME Group (5.1) (4.7) 9.5% (5.1) 0.2%

Provisions (0.6) (2.1) -70.5% (1.9) -66.5%

Adjusted Expenses 150.2 136.0 10.4% 133.2 12.8%

Summary of Income Statement (consolidated)


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Summary of Income Statement (consolidated)

* Attributable to BM&FBOVESPA shareholders.

3Q13 3Q12 Change3Q13/3Q12

2Q13 Change3Q13/2Q13

Net Revenues 535.4 521.6 2.6% 599.8 -10.7%

Expenses (194.1) (174.8) 11.1% (176.8) 9.8%

Operating Income 341.3 346.8 -1.6% 423.0 -19.3%

Operating margin 63.7% 66.5% -275 bps 70.5% -678 bps

Equity in Income of Investees 43.3 37.2 16.4% 51.4 -15.7%

Financial Result 49.6 45.5 8.9% 43.1 15.1%

EBT 434.2 429.6 1.1% 517.5 -16.1%

Net Income* 281.6 276.5 1.8% 350.8 -19.7%

Adjusted Net Income 403.7 400.6 0.8% 469.6 -14.0%

Adjusted EPS (in R$) 0.211 0.208 1.7% 0.244 -13.5%

Adjusted Expenses (150.2) (136.0) 10.4% (133.2) 12.8%

Final Remarks


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REVENUES AND RESULTS Resilient revenues and results in a challenging market environment

Growing diversification of products and revenues

INVESTMENTS

Commitment with the maintenance of market integrity

Strengthening the competitive edge by delivering efficiency to the market

FOSTERING CLIENTS AND MARKET

Strengthening ties with market participants and clients

Becoming a one-stop-shop by increasing the diversity of products for clients

COMMITMENT TO CAPITAL RETURN FOR SHAREHOLDERS

Maintained focus on cost control

High payout ratio combined with share buyback

Final Remarks


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BM&FBOVESPAINVESTOR RELATIONS

+55 (11) 2565 4729 / 4418 / 4834 / 7073 / 4007

[email protected]

ir.bmfbovespa.com.br

BVMF Presentation - January 2014

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