Escolar Documentos
Profissional Documentos
Cultura Documentos
ForwardLookingStatements
Thispresentationmaycontaincertainstatementsthatexpressthemanagementsexpectations,beliefsandassumptions
aboutfutureeventsorresults.Suchstatementsarenothistoricalfact,beingbasedoncurrentlyavailablecompetitive,
financialandeconomicdata,andoncurrentprojectionsabouttheindustriesBM&FBovespaworksin.
Theverbsanticipate,believe,estimate,expect,forecast,plan,predict,project,targetandothersimilar
verbsareintendedtoidentifytheseforwardlookingstatements,whichinvolverisksanduncertaintiesthatcouldcause
actualresultstodiffermateriallyfromthoseprojectedinthispresentationanddonotguaranteeanyfutureBM&FBovespa
performance.
performance
Thefactorsthatmightaffectperformanceinclude,butarenotlimitedto:(i)marketacceptanceofBM&FBOVESPAservices;
(ii)volatilityrelatedto(a)theBrazilianeconomyandsecuritiesmarketsand(b)thehighlycompetitiveindustries
p p
;( )
g
( )
g
g
( )g
p
BM&FBovespaoperatesin;(iii)changesin(a)domesticandforeignlegislationandtaxationand(b)governmentpolicies
relatedtothefinancialandsecuritiesmarkets;(iv)increasingcompetitionfromnewentrantstotheBrazilianmarkets;(v)
abilitytokeepupwithrapidchangesintechnologicalenvironment,includingtheimplementationofenhanced
functionalitydemandedbyBM&FBovespacustomers;(vi)abilitytomaintainanongoingprocessforintroducing
competitivenewproductsandservices,whilemaintainingthecompetitivenessofexistingones;(vii)abilitytoattractnew
customersindomesticandforeignjurisdictions;(viii)abilitytoexpandtheofferofBM&FBovespaproductsinforeign
jurisdictions.
Allforwardlookingstatementsinthispresentationarebasedoninformationanddataavailableasofthedatetheywere
made,andBM&FBovespaundertakesnoobligationtoupdatetheminlightofnewinformationorfuturedevelopment.
This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities nor shall there be
Thispresentationdoesnotconstituteanoffertosellorthesolicitationofanoffertobuyanysecurities,norshallthere
anysaleofsecuritieswheresuchofferorsalewouldbeunlawfulpriortoregistrationorqualificationunderthesecurities
law.NoofferingshallbemadeexceptbymeansofaprospectusmeetingtherequirementsoftheBrazilianSecurities
CommissionCVMInstruction400of2003,asamended.
BVMFSTOCKPRICE
Recent Performance
RecentPerformance
BVMF3 Recentperformance
BM&FBOVESPA
BVMF3YTD:0.4%
IBOVESPA
IOFs
10/17
R$14.97
Ibovespa YTD: 2
IbovespaYTD:
2.0%
0%
Updateduntil01/31/2013.
Jan13
Dec12
Nov12
Oct12
Sep12
Aug12
May12
Apr12
Mar12
Oxera s Report
Oxera's
Report
Release
06/18
Feb12
Jan12
Dec11
Nov11
Oct11
Sep11
DirectEdge
Direct
Edge
11/21
R$10.11
Aug11
Jul11
Jun11
May11
Apr11
Mar11
Feb11
Jan11
Dec10
0
Nov10
Oct10
Sep10
0
Aug10
ExchangesMergers BATs
02/15
02/08
R$11.43
R$11.18
NewIOFon
Derivatives
07/26
R$9.55
Removalof
IOFonEquities
12/01
R$10,54
Jul12
Rumors
aboutIOF
ChangeofIOF
onforeign
exchange
t
transactions
ti
06/14
Jun12
Goodwill
p
Competition
/
11/30
R$13.01 News
01/05
R$13.10
ReductionsofVolumes
EstimatesbytheMarket
BRAZILIANMARKETOPPORTUNITIES
EquityMarket(BOVESPASegment)
LowpenetrationintheBrazilianmarket
Clients base: huge potential in retail and pension funds segments
Clientsbase:hugepotentialinretailandpensionfundssegments
Numberofcustodyaccounts(thousands)
Jan'13
610 3
610.3
Pensionfundsportfolio
Lowpenetrationofequity
andderivativesinthemain
and
derivatives in the main
investorsportfolios
Stableandlowinterest
rateenvironmentencourage
moreexposureinequities
i
iti
Jan0
05
Jul0
05
Jan0
06
Jul0
06
Jan0
07
Jul0
07
Jan0
08
Jul0
08
Jan0
09
Jul0
09
Jan1
10
Jul1
10
Jan1
11
Jul1
11
Jan1
12
Jul1
12
Jan1
13
Jan'05
'
128.6
Recentgrowthinthenumber
ofretailinvestors,butstill
lowcomparedtoother
markets
R$574billion
$
Equity
FixedIncomeandOthers
69.9%
R$168billion
72.3%
30.1%
27.7%
2002
2011
ListedCompanies
Dec12 Listed Companies
Dec12ListedCompanies
Lownumberoflistedcompaniescomparedto
othercountries
6,856
Lackofimportanteconomicsectorsinthe
exchange for instance: oil & gas infrastructure
exchange,forinstance:oil&gas,infrastructure,
retail,ITandpharmaceutical,
4 916
4,916
4,041
3,972
3,481
3,200
2,767
2,056
1,784
364
India
USA
China/
HK
Canada
Japan
Source:ABRAPP,WFEandBM&FBOVESPA
Spain
UK
Australia
Korea
Brazil
Investmentcyclemaybringnewcompaniesand
sectorstotheexchange
Currently,SMEsarenotabletoraisemoney
throughequityeasily
6
DerivativesMarket(BM&FSegment)
Growthincreditlevelwillfavorvolumes
Credit: very low credit level and even lower in the case of mortgage transactions
Credit:verylowcreditlevelandevenlowerinthecaseofmortgagetransactions
TradeFlow(totalImports+ExportsinUSDbillions)
CredittoGDP
Mortgage
53.5%
TotalCredit
281
466
466
2011
2012
384
371
27.4%
482
281
229
6.3%
Jan01
Jul01
Jan02
Jul02
Jan03
Jul03
Jan04
Jul04
Jan05
Jul05
Jan06
Jul06
Jan07
Jul07
Jan08
Jul08
Jan09
Jul09
Jan10
Jul10
Jan11
Jul11
Jan12
Jul12
4.5%
2006
2007
2008
2009
2010
InterestRateinBRLcontracts:growthincreditlevels,speciallyinfixedrates,supportincreasetheactivityof
financial institutions
financialinstitutions
FXcontracts:growthintheamountofforeigntradingandchangeinthecultureofhedgingfromentrepreneurscan
pushupvolumesinthisgroupofcontracts,mainlyincurrenciesotherthanUS$
Indexbasedcontracts:growthincashequitymarket,thelaunchinganddevelopmentofETFsandthegrowthof
exposuretoequitybyinstitutionalinvestorscandrivethegrowthofthesecontracts
Commoditiescontracts:cashsettledcontractsandthechangeinthebehavioroffarmersthatarebecomingmore
sophisticated
7
MAININITIATIVES
ConsistentGrowth
Historicrecordofvolumeskeepinglongtermgrowthtrend
TesouroDireto
AverageNumberofInvestors RetailInvestors
(inR$millions)
(inthousands)
155.8
115.9
18.6 28.5
102.3107.5
97.6
82.7
64.4
91.5
23.8 27.5
48.7
36.3 42.3
Jan/13
AverageAssetsunderManagement*
AverageAssetsunderCustody
(in R$ billions)
(inR$billions)
(inR$millions)
$
2,336 2,541
1,974
1 032
1,032
271
85.7
78.9 83.0 86.0
1,322
2,422
6.1
579
8.6
1,696
1.3
1.8
2.9
7.9
8.8
9.3
9.3
3.9
Jan/13
9
HighGrowthProducts
RealEstateFunds(FII)andAgribusinessCreditBills(LCA)
FIXEDINCOMEANDREALESTATEPRODUCTS
Real Estate Funds (FIIs)
RealEstateFunds(FIIs)
60
36.5
50.3
50
40
30
25.3
20
0.1
10
ADTV(R$MM)
dez12
nov12
out12
set12
ago12
jul12
jun12
mai12
abr12
mar12
fev12
jan12
2012
2011
2010
2009
2008
2007
0
Assetsundercustody(R$billion)
MktCap(R$BN)
97.1
38%
62%
19.7
#ofinvestors
Mkt.ShareBVMF
Other
10
HighGrowthProducts
Increasedsophisticationofmarketparticipants
HIGHGROWTHPRODUCTS
SecuritiesLending(OpenInterest)
(R$ billion)
CAGR:+35.9%
CAGR:+44.0%
276.3 +42.2%
276.3
+42 2%
57.0
Other
PETR+VALE
219.3
280.1
280.1
81.2
9.3%
198.9
2011
2012
269
256
2009
2010
528
2011
805
20.5
12.7
2012
2009
2010
30.2
31.9
2011
2012
ETFs (ADTV
(ADTV R$MM)
R$ MM)
CAGR:+84.0%
CAGR:+45.7%
115.9
18.6
28.5
48.7
2009
2010
2011
2012
2.9
3.9
2009
2010
6.1
2011
9.0
2012
11
StrategicProjects
Multiassettradingplatform(PUMATradingSystem)
Stateoftheartintradingtechnologyandtechnologicalindependency
Derivativesmodulesuccessfullyimplementedin2H11
Equitiesmarkettobeconcludedin1Q13
LicensingTRADExpress RealTimeClearingsystem
Objective:integratingandmodernizingourexistingclearingfacilitiesshouldproceedover2013.
Integrated tests with the market and implementation of the systems scheduled to take place in 2013/2014
Partnership advantages:
License
Li
t use the
to
th software
ft
Access to the source code
Selling rights over our new clearing platform
RegistrationsystemsforOTCderivatives
Objective: modernize,improveandexpandtherangeofourregistrationservicesforOTC
derivatives,whileofferingourcustomersastreamlined,qualitysolutionandthorough
regulatory reporting tool
regulatoryreportingtool
Oneofthemostflexibleandcompleteenginesforregistration,pricediscovery,risk
assessment,captureandlifecycleprocessingofthesetransactions
Threemoduleimplementation:thefirstoneisscheduleto2H12,thesecondonefor
1H13andthirdmoduleoftheplatformwillbeannouncedinduecourse
12
ClearingHouses Integration
Building astate of the art platform
Derivatives
(R$ 107 bn*)
(R$107bn*)
Financialand
commoditiesderivatives
diti d i ti
(futures,optionsand
forward)
OTCderivatives
EquityandCorporate
Debt (R$ 70 bn*))
Debt(R$70bn
FX
(R$ 4 b *)
(R$4bn*)
Equity,ETFsand fixed
income cash market
FXspotmarket
(US$vs.R$)
Securities
(R$ 1 b *)
(R$1bn*)
Cash market and forward
market
k t forgovernment
f
t
bonds
Securities lending
Capitalefficiency
*AggregateofpledgedcollateralsatourclearinghousestotaledR$181.3billioninSep.30,2012.**IPN/COREimplementationrequirestheauthorizationoftheregulators.13
MainProjects
Deliveriesalreadyimplementedandprogrammed
INTENSEDELIVERYPHASESTARTINGIN4Q12
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
(...)
Migration of
PUMA
Trading
S t
System
(equities)
Fixed income
registration
platform
Fixed income
trading
platform
OTC Derivatives
Platform (Calypso)
Cross
listing
New integrated clearing house/ CORE*
(...)
(...)
( )
(...)
Development of new products / markets: ETFs, market making programs for the options market; dual listings
( )
(...)
*IPN/COREimplementationrequirestheauthorizationoftheregulators.
14
BUSINESSMODELANDREGULATORY
FRAMEWORK
15
PossibleCompetition
Importantconsiderations
EASINGREGULATIONISNOTEXPECTED
Mainrequirements:pretradecontrols,selfregulatory(SRO),offexchangetradesarenotpermitted(internalization
ofordersandOTC),CCPforstockstrading,posttradingatthebeneficialownerlevel
Competitioninotherexchangeswasintensifiedaftereasingregulation
THEEXCHANGEFEES(TRADINGANDPOSTTRADING)AREPAIDBYTHEFINALINVESTOR
DifferentlyfromUSAandEurope,thefinalinvestorsistheonewhopaystheexchangefees
Brokerscouldntincreasetheirshareintheallintradingcostpieincaseofreductionontheexchangefees
STOCKSTRADINGALLINCOSTINBVMFISCOMPETITIVE
Comparingonlythetradingfeesamongexchangesismisleading.BVMFprovideshigherportionofservicesthanthe
peers
Despitethemisleadingperception,all
Despite the misleading perception allin
incostinBVMFiscompetitivecomparedtoothermarkets
cost in BVMF is competitive compared to other markets
ITINFRASTRUCTUREMOVINGTOSTATEOFTHEART
There is no gap of IT infrastructure
ThereisnogapofITinfrastructure
IncreasingparticipationofHFTviaColocation(movingtosubmillisecondlatency)
RECENT BM&FBOVESPA INITIATIVES (REBALANCING OF FEES STRUCTURE)
RECENTBM&FBOVESPAINITIATIVES(REBALANCINGOFFEESSTRUCTURE)
Shiftbetweentradingandposttradingfees
16
PanelsponsoredbyCVM
Mainpoints
OnJune29,CVMsponsoredadiscussionwithstakeholders
Regulator:thestudyshowsthatcompetitioninexchangeindustryisnoturgent
Participantsview
9Regulator:marketintegrityandtransparencyarepriorities
9Brokers:mostofthemhavedoubtsaboutthebenefitsandshowedconcernsrelatedtocostrising
g
forthemandrisksforthemarket
9Investors:ingeneralhaveaperceptionthatpricesareinlinewithinternationalbenchmarksandare
concernedwithmarketintegrity
9Infrastructureproviders(exchanges):nonconsensusregardingthenecessityofopeningtheclearing
houseornotinordertocreatetheconditionsforcompetition
BVMFsmainconsiderations:
9UnderstatesregulatoryandIT/infrastructurecostforbrokers
9Disregardsimplicitcostsofliquidityfragmentationanddoesnotassessqualitativelytheprice
formationimpacts
9ComparesinadequatelytheothermarketcostswhenitdoesnotusetheAllincost
9Marketsizeisnotbigenoughtoembracenewexchanges
g
g
g
9Recognizestheimportanceofclearinghousesintegration
17
EquityMarketSettlementStructure
BrazilComparedtoUSA
BRAZIL
USA
(Allthetradesmustbematchedonan
exchangeenvironment)
(Brokerscaninternalizeorders)
TradingVenues
Trading
BVMF
BVMF
DTCC
Brokers
AandB
Brokers
AandB
Broker
A
Post trading
Posttrading
Clearing(CCP)
Settlement
CentralDepository
Investors
Investors
Investors
Broker
B
Investors
100%verticallyintegrated:clearing,settlement and
centraldepositoryatthebeneficialownerlevel
DTCCdoestheclearing,settlement andcentral
depositoryofsecuritiesatthebrokerslevel
Brokerscontroltheirclientsportfoliosandsettle
positionsthroughBVMFsinfrastructure (this
impactstheposttradefeeschargedbyBVMF)
Eachbroker(primebroker)hasitsownstructureto
controltheirclientsportfoliosandsettlepositions
(thisimpact theprimebrokerscosts)
18
BusinessModel
ListedExchangeBusinessModel
DiversifiedandIntegrated
DiversifiedbutNotIntegrated*
IntegratedDerivatives
*Donotprovideposttradingservicesfortheequitymarket
MarketCapitalization(US$billions)andEBITDAMargin(%)
Source:Bloomberg
Updateduntil:01/31/2013
p
/ /
77.9%
65.5%
61.6%
76.9%
69.7%
59.4%
42.3%
21.8
HKEx
19.3
CME
13.9
BVMF
12.8
Deutsche
Boerse
Diversified andintegrated
*12mths to30June2012.
72.0%
62.2%
58.6%
49.1%
47.6%
10.1
8.4
6.7
6.4
5.2
4.7
2.9
ICE
Nyse
Euronext
SGX
ASX*
LSE
Nasdaq
TMX
DerivativesDiversified butnotintegrated
2.3
BME
EBITDAMargin
19
BrazilianMarketRegulatoryFramework
Legalrequirements:resilience,transparence,clearrules.
Brokers&
investors
Regulationprohibits internalizationoforders,darkpools
andATS/MTFs,stockstradinginbothexchangeandOTC
simultaneously
Settlementandclearingofstockstradingmustbedone
through a CCP
throughaCCP
Settlementandclearingatthebeneficialownerlevel
maketheBrazilianmarketsaferandmoreresilient
Trading
Undertheregulationinplace,potentialcompetitors
wouldbeobligedtoprovidethesameintegrated
solution, with the same rules and transparency
solution,withthesamerulesandtransparency
Thefinalinvestorpaystheexchangefee
PosTrading
g
g
g
Otherexchangeshavebeenseekingintegratedmodels
(selfclearingmodels)
Nakedaccessisnotallowed
Nakedshortsellingisnotpossible
20
Braziliansstocktradingbreakdown
EndofCPMF
(Financial
TransactionTax)
NovoMercado
Launching
(Dec.2000)
EndofIOFTax(2%)for
foreigninvestors
(Dec.2011)
SarbanesOxleyAct
(Jul.2002)
J 13
Jan13
25.4%
33.2%
7 8%
7.8%
36.0%
OtherUSAVenues BrazilianADRs
BM&FBOVESPA companieswithADRs
NYSE BrazilianADRs
BM&FBOVESPA(exceptcompanieswithADRs)
Jan13
2
Dec12
Oct12
Nov12
Sep12
Aug12
Jul12
2
Jun12
May12
Apr12
2
Mar12
Feb12
Jan12
Dec11
Nov11
Oct11
Sep11
Jul11
Aug11
Jun11
May11
2011
Apr11
2010
0
2009
9
2008
8
2007
7
2006
6
2005
5
2004
4
2003
3
2
2002
2001
2000
0
1999
9
1998
8
1997
7
1996
6
30.8%
66.8%
Source:Bloomberg(inUSD
tradedvalueof35companies
withADRsprograms)
2001
14
14
14
2002
1
5
6
6
2003
8
8
8
2004
7
8
15
15
2005
9
10
19
19
2006
26
16
42
42
2007
64
12
76
76
2008
4
8
12
12
2009
6
18
24
24
2010
11
11
22
22
DualListings
*Updateduntil02/08/2013.
2011
11
11
22
22
2012
3
9
12
12
2013
1
1
Total
143
131
272
272
5
21
OPERATIONALHIGHLIGHTS
22
BOVESPASegment:operationalhighlights
Average Daily Traded Value ADTV(BRLbillions)
AverageDailyTradedValue
ADTV (BRL billions)
8.3
6.3
7.3
7.0
7.4
8.2
7.2
6.0
8.4
6.7
6.6
7.9
7.3
2005
2006
2007
2008
2009
2010
2011
2012
Jan12 Feb12 Mar12 Apr12 May12 Jun12 Jul12 Aug12 Sep12 Oct12 Nov12 Dec12 Jan13
Averageannualmarketcap(R$trillion)
TurnoverVelocity**(12monthsaverage)
66.6%
2.54
2.33 2.37 2.42
1.98 2.03
63.8%
1.83
1.31
0.72
63.2%
56.4%
70.3% 71.0%
64.2%
30.8%
36.8% 37.6%38.7%
42.3%
0.94
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013*
29.4%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013*
*Updateduntil01/31/2013.**Relationofthetradingvalueinthecashmarketandthemarketcapoftheexchange.
23
BOVESPASegment:capitalraisingactivity
PublicOfferings(BRLbillions)
Updateduntil01/31/2013.
FollowOn
74.4
70.1
11.2
IPO
46.0
30.4
8.8
4.5 4.3
2004
13.9
55 6
55.6
5.4
8.5
15.4
15.1
14.5
2005
2006
2007
34 3
34.3
7.5
23.8
26.8
22.2
2008
2009
63.2
2010*
18.0
13.2
7.2
10.8
3.9
2011
2012
9.3
0.7
0.7
2013
Pipeline:alreadyannouncedtothemarket
Thereare4offeringsinthepipeline:
Th
4 ff i
i th i li
IPO(4):AutoBrasil Participaes;Cia.EstadualdeguasEsgotos CEDAE;Senior Solution;Alupar Investimentos
* Excludes the capitalization with barrels reserves by federal government BRL74.8 billion in Petrobras offering.
24
BOVESPASegment
Potentialtoincreasethenumberoflistedcompanies
Market Capitalization to GDP (%)*
MarketCapitalizationtoGDP(%)*
2009
177%
174%
138%
129%
136%
137%
126%
121%
119%
109% 109%
104%
110%
129%
107%
100%
87%
67%
Canada
Chile
USA
100%
96%
89%
Singapore
2011
HongKong: 438%481%365%
158%
129%
2010
Korea
Australia
75% 76%
75%
60%
Japan
87%
80%
72% 72%
57%
55%
France
India
50%
Brazil
49%
UK
46%
China
39%
44%
35%
Mexico
*Source:WorldBank
Dec05
Dec11
15.7%
15.2%
22.4%
26 4%
26.4%
14.1%
21.6%
11.5%
1.8%
10.4%
4.7%
16.2%
6.8%
8.6%
11.1%
0.6%
0.3%
3.9%
%
2.5%
3.6%
2 6%
2.6%
Oil,GasandBiofuels
BasicMaterials
CapitalGoodsandServices
ConstructionandTransportation
ConsumerNonCyclical
ConsumerCyclical
Information Technology
Telecommunications
PublicUtilities
Financial
25
BM&FSegment:operationalhighlights
Average Daily Traded Volume ADTV(Thousandsofcontracts)
AverageDailyTradedVolume
ADTV (Thousands of contracts)
3,518
2,899
2,505 2,701
805 852
187
86
110
422
109
74
168
501
1,167
124
68
266
711
988
162
88
535
150
80
447
789
843
191
89
541
285
123
496
2,615 2,497
,
336
336
143
494
315
123
541
1,636 1,452
200420052006200720082009201020112012
Jun05
Jun05 Jun05 Jun05 Jun05 Jul05 Jul05 Jul05 Jul05
BRLInt.Rate(Thousands)
334
166
545
2,994
285
285
123
524
2,061
308
205
509
509
3,904
385
245
593
2,590
350
158
520
2,497 2,681
1,561
331
99
476
113
547
1,856
106
485
345
137
425
355
111
451
290
84
474
1,561
Jan12 Feb12 Mar12 Apr12 May12 Jun12 Jul12 Aug12 Sep12 Oct12 Nov12 Dec12 Jan13
FX(Thousands)
Index(Thousands)
Others(Thousands)
R t
RateperContract
C t t RPC(BRL)
RPC (BRL)
2006
2007
2008
2009
2010
2011
2012*
J12
F12
M12
A12
M12
J12
J12
A12
S12
O12
N12
D12
J13
InterestratesinBRL
0.906
0.950
1.141
0.979
0.889
0.918
1.004
1.045
1.064
0.926
0.948
0.922
1.059
1.026
1.076 1.130 0.924
1.044
1.037
1.032
FX rates
FXrates
2 244 1.859
2.244
1 859 2.065
2 065 2.161
2 161 1.928
1 928 1.894
1 894 2.205
2 205
2 106 1.929
2.106
1 929 1.876
1 876 1.991
1 991 2.015
2 015 2.237
2 237 2.325
2 325
2 506
2.506
2 370
2.370
2 453
2.453
2.368
2 368
StockIndices
1.419
1.501
2.145
1.620
1.564
1.614
1.524
1.316
1.674
1.328
1.502
1.233
1.708
1.403
1.750 1.407 1.752
1.400
1.981
1.547
InterestratesinUSD
1.094 0.965
1.283
1.357
1.142
0.941
1.015
0.958
0.804
0.911
0.991
1.021
0.955
1.143
1.027 1.086 1.024
1.164
1.152
1.073
Commodities
4.749
3.195
3.587
2.307
2.168
2.029
2.239
1.688
2.033
2.183
2.228
1.945
2.099
2.014
2.270 2.840 2.680
2.485
3.360
2.449
Minicontracts
0.034
0.054
0.162
0.176
0.128
0.129
0.116
0.130
0.130
0.122
0.113
0.116
0.111
0.110 0.109 0.112
0.131
0.107
0.112
0.120
OTC
1.571
2.111
2.355
1.655
1.610
1.635
1.769
2.438
1.515
1.822
1.880
1.203
1.321
1.523
2.693 1.139 1.738
1.711
2.475
1.988
TotalRPC
1.247
1.224
1.527
1.365
1.134
1.106
1.191
Updateduntil01/31/2013.
1.236
1.227
1.079
1.100
1.074
1.272
1.222
1.277 1.314 1.098
1.242
1.303
1.266
2 453
2.453
2 481
2.481
26
InterestRateinBRLContracts
Structuralchangesbehindthegrowthinvolumes
BRLINT.RATE:ADVPERMATURITY(MILLIONSOFCONTRACTS)
Growthininterestratecontracts
with longer maturity
withlongermaturity
1.81
1.66
1.77
CAGR:+3%
1.35
CAGR:+32%
0.76
0.72
0 47
0.47
0 51
0.51
0.91
0.93
0.77
0 87
0.87
CAGR:21%
0.57
0.28
0.38
2008
2009
2010
1st4thMaturity
2011
5thMaturity
Dec'12:
BRL850.9
Dec'12:
BRL 789.3 bn
Jan'05:
BRL 151.4 bn
Jan'05:
BRL180.0
Jan06
Total
PublicDebt/FixedRate inBRLbillions
FixedRateCredit inBRLbillions
Jan05
2012
Jan07
Source:Brazilian CentralBank.
Jan08
Jan09
Jan10
Jan11
Jan12
HighFrequencyTrading(HFT)
BM&FSegment:HFT(ADTVinthousandsofcontracts)andmkt.share
4 2% 3.9% 3.6%
3.5% 4.2%
8.9% 9.1%
7.5% 7.3% 8.7% 8.5% 6.6% 6.9%
7.5% 6.4% 7.2% 6.3%
6.7% 5.4%
6.7% 5.6%
5.9% 5.8%
5.8%
5 4%
5.2%
5
2%
5 0%
5.0%
528
481 474
88
51
65
90
50
71
93
49
82
90
118
101
102
92
419
66
61
155
203
219
Mini
343
153
153
50
124
177
142
126
113
417
FX
268 288
42
85
41
41
88
120
131
Equities
79
50
191
442
403
73
49
59
141
159
150
150
146
128
163
Other
144
225
89
89
71
71
56
61
61
55
55
31
186
202
223
201
197
58
53
53
46
55
55
227
204
237
37
44
156
%overallvolume
BovespaSegment:HFT(ADTVinBRLmillion)andmkt.share
5.7% 6.6% 5.9% 5.9%
272
206
267
346
258
352
746
785
140
261
210
254
344
321
1,683
996
963
730
192
293
511
899
974
152
253
151
262
495
205
1,296
380
380
165
311
1,099
561
ADTV(Foreigners)
821
1,460
164
281
1,016
1,367
1,339
1,366
,
,
1 088 372 1,160
1,088
166 1,145
166
296
259 110
306
210 303
913
826
ADTV(Individuals)
785
995
854
1,526
1,517 1,489
1,363 1,344
1,268 1,332 245
230
387 420
387
420
1,517 1,473
278
227
263
265
1,243
1,070 1,238
1,041 1,069 1,016
ADTV(Institutionals)
366
269
212
243
246
285
785
831
884
783
%ofoverallmarket
28
FINANCIALHIGHLIGHTS
29
Highlights3Q12vs.3Q11
Growthinallbusinesslinesandcostsundercontrol
FINANCIAL HIGHLIGHTS
OPERATINGHIGHLIGHTS
9 GrossRevenue: R$581.3million,+6.2%
9 Bovespa Segment:
Bovespa
Bo espa Seg.:R$263.4million,+5.9%
Seg R$263 4 million +5 9%
ADTV:+8.7%
ADTV +8 7%
BM&FSeg.:R$219.3million,+6.8%
Margin: flat
Otherrevenues:R$98.7million,+5.8%
9 BM&FSegment:
RPC:+14.7%
RPC: +14 7%
9 NetRevenue: R$521.6million,+5.7%
ADV:4.0%
9 Highgrowthproducts:
j
p
R$136.0 million,0.2%
,
9 AdjustedExpenses:
ETFs:+90.2%ADTV
Tesouro Direto:+45.6%AUM
9 Operating Income:R$346.8million,+7.0%
FII:stronggrowthinmarketcapitalizationand
numberofinvestors
9 EBITDA:R$375.6million,+8.1%
LCA:consistentincreaseofregistervolume
f
l
EBITDAMargin: 72.0%
9 Adj.NetIncome: R$400.6million,+0.3%,
9 Adj.EPS: R$0.208,+1.7%
9 Payout:
P
t R$221.2millionindividendsandintereston
R$221 2 illi i di id d
di t
t
capital,80%ofGAAPnetincomein3Q12
1
MAINPROJECTSFOR4Q12
9 Crosslisting:listingofS&P500minicontractsatBVMF
l
l
f
andIbovespa atCME
9 PUMATradingSystem:equitiesmodule
9 RegistrationPlatforms
g
Excludes stock options plan, depreciation, provisions and tax on dividends from CME Group. 2 Excludes deferred liability recognized in correlation with temporary differences from amortization of
goodwill for tax purposes, the impact of the stock options plan, the investment in associate (CME Group) accounted for under the equity method of accounting, net of taxes related to dividends and
recoverable taxes paid overseas to be compensated.
30
FinancialHighlights
Focusoncashgenerationandshareholdersreturn
OPERATING CASHGENERATION
(R$million)
CASHANDFINANCIALINVESTMENTS
(R$million)
3Q12
+6.9%
340.5
364.1
2Q12
1Q12
4Q11
3Q11
3Q11
3Q12
RETURNINGCAPITALTOSHAREHOLDERS
1,166
1,443
1 207
1,207
1,551
1,270
,
343 390
2,100
340 363
383 354
383
354
1,979
1 714
1,714
1,582
380 270
468 284
Marketparticipantscashcollateralandothers*
Subsidiaries**
3,999
,
1,487
4,125
3 658
3,658
3,782
,
3,508
Restrictedfunds
Availablefunds
CAPEXBUDGETFOR2012
9 Payout: R$221.2million,R$131.2millionindividends
and R$90 0 million in interest on capital 80% of
andR$90.0millionininterestoncapital,80%
of
GAAPnetincomein3Q12.
9Budgetrange:R$230260million
9 Sharebuybackprogram:upto60millionshares
authorizedforrepurchaseuntilJune28,2013
9Actual9M12:R$124.2million
9Actual3Q12:R$52.3million
*Includes collaterals pledged by participants in the form of cash, receivables and rights in securities under custody, as well as payouts still undisbursed.
** Includes third party collaterals and restricted funds at BM&F Settlement Bank (Banco BM&F).
31
RevenueBreakdownin3Q12
Diversifiedrevenuesourcesasadifferential
REVENUEBREAKDOWN(3Q12)
39.3%:CashEquities
9.2%:Trading
30.1%:Posttrading
9 2%
9.2%
18.5%
5.2%:DerivativesonStocksandIndices
1.4%:Trading
3.8%:Posttrading
Gross Revenue:
R$581.3 million
37.0%:Financial/CommoditiesDerivatives
30.1%
14.3%:Trading
22.7%:Posttrading
22.7%
18.5%:Otherrevenues
1.4%
3.8%
14.3%
4.5%:Depository,Custodyandbackoffice
3 2%: Securities Lending
3.2%:SecuritiesLending
3.1%:Vendors
2.2%:TradingAccess(brokers)
1.9%:Listing
3 6%: Others
3.6%:Others
32
Expensesin3Q12
Focusoncostcontrolandhigheroperatingefficiency
TOTALEXPENSESBREAKDOWN(3Q12)
ADJUSTEDEXPENSES
(R$million)
-0.2%
Other
163.9
15%
Marketing
136.3
2%
Third
Party
8%
Expenses:
R$174.8MM
47%
125.4
127.9
136.0
1Q12
2Q12
3Q12
Personnel
14%
Depr./
Amort.
14%
3Q11
4Q11
Data. Proc.
ADJUSTEDEXPENSES:2Q12vs.3Q12
ADJUSTEDEXPENSES:3Q11vs.3Q12
(R$million)
(R$million)
2.4
1.5
(0.7)
4.8
0.1
(1.1)
2.5
(2.5)
1.7
0.1
(0.8)
(0.3)
136.0
136.0
136.3
127.9
Others
3Q12Adj.
Exp.
Others
3Q12Adj.
Exp.
33
ADJUSTEDOPEXBUDGET
2013Budget:R$560580million,thesamerangeof2012
Focusoncostcontrol: in2013,inflationarygrowthwillbeneutralizedbyhigher
,
yg
y g
efficiency
ExpensesCAGR(201013):
1.6%pa
<
InflationCAGR(20102013)
5.8%pa
560580
544
585
2010A
2011A
(inR$millions)
560580
2013budgetin
the same range
of 2012
2012E
2013E
Adjusted bydepreciation,stockoptionprogram,taxondividendsfromCMEGroupandprovisions.
Expenses growth considering the midpoint budgetfor2013(R$570million)and estimated IPCAfrom BCBFocus Bulletin (November 30,2012).
34
CAPEXBUDGET
2013Budget:R$260290million
2014 Budget: R$170200 million
2014Budget:R$170200million
InvestmentsclosetoR$1.2billionbetween2010and2014inprojectsbelow:
Capexreductionstartingfrom2014
230 260
230260
(inR$millions)
260290
170200
268
2010A
204
2011A
2012E
2013E
2014E
3Q101Q13:PUMATradingSystem
20112014:Clearinghouses integration /CORE*
4Q124Q14:DataCenter
2Q123Q13:OTC
20102014:Improvementsininfrastructure
*IPN/COREimplementationrequirestheauthorizationoftheregulators.
35
Appendix
36
36
FullyintegratedBusinessModel
Diversifiedsourcesofrevenues
Servicesforissuers,brokersand
Services
for issuers brokers and
commoditiestrading
Trading,ClearingandDepositoryActivities
Listingg
(stocks,bonds,funds,
assetbackedsecurities,
Amongothers)
TTrading
di
(stocks,derivatives,corporateandgovernment
Bonds,funds,spotUSDollar,amongothers)
Commodities
Certification
CentralCounterparty(CCP)
ClearingandSettlement
(forallproducts)
Others Services
Custodyy
(servicesprovidedforfunds
andothermarket
participants)
MarketData
IndicesLicensing
TradingAccess
((Brokers))
CentralDepository
((stocksandcorporatebonds)
p
)
SecuritiesLendingg
(stocksandcorporatebonds)
SoftwareLicensing
(usedbybrokerage
Housesandother
marketparticipants)
OTCDerivatives
(registrationandcollateral
management)
37
HighFrequencyTrading HFT
NewProductsPipeline
Newpricingpolicy(bothsegments)
MainCharacteristics
DifferentiatedfeesbytieronlyfordaytradestransactionsexecutedbyaregisteredHFT
AHFTCommitteecreatedtoapproveandmonitortheHFTs
ThenewpricingpolicywasimplementedinNov10
Bovespa Segment
IntheBovespa Segment,differenttierswerecreatedforindividualsandnonindividualsHFTinvestors
Nonindividuals
Individuals
TradingFee
(bps)
Settlement
Fee (bps)
Total
Up to 20 (inclusive)
Upto20(inclusive)
0.70
1.80
2.50
0.50
1.80
2.30
0.20
1.80
2.00
1.80
From20to50(inclusive)
From50to250
(inclusive)
From250to500
(inclusive)
0.05
1.75
1.80
1.60
Above 500
0.05
1.55
1.60
TradingFee
(bps)
Settlement
Fee (bps)
Total
ADTVtier (BRLmillions)
U t 4 (i l i )
Upto4(inclusive)
0 70
0.70
1 80
1.80
2 50
2.50
From4to12.5(inclusive)
From12.5to25
(inclusive)
0.50
1.80
2.30
0.20
1.80
2.00
From25to50(inclusive)
0.05
1.75
Above 50
0.05
1.55
ADTVtier (BRLmillions)
BM&FSegment
IntheBM&FSegment,the70%flatdiscountwasreplacedbyavolumetieredbaseddiscount,onlyfordaytrades,
dividedintotradingandregistrationfees
38
BOVESPASegment:foreigninvestmentflow
MonthlyNetFlowofForeignInvestments*(inBRLbillions)
10.0
7.2
6.5
0.3
(1.5)
3.4
2.1
1.7
0.70.4
1.5
(1.6)
5.1 5.0
44
4.4
3.73.5
(0.6)
1.9 2.2
0.3
(1.3)
2.9
0.71.1
0.81.0
(0.4)(0.2)
(1.1)
(1.3)
(2.4)
0.3
(2.3)
0.8
(1.2)
(4.2)
*Includesregulartradesandpublicoffering.UpdateduntilDec.31,2012.
39
Operationalhighlights:investorsparticipationinTotalVolume
BM&FSegment(InvestorsParticipationinTotalVolume)
7%
7%
9%
8%
8%
4%
4%
5%
4%
4%
4%
4%
4%
4%
24%
25%
23%
23%
24%
30%
33%
34%
36%
34%
36%
34%
37%
38%
12%
15%
17%
19%
20%
22%
23%
25%
25%
27%
23%
28%
25%
23%
45%
42%
38%
34%
33%
34%
36%
33%
33%
33%
2009
2010
2011
2012
Aug12
Sep12
Oct12
Nov12
Dec12
Jan13
56%
2005
51%
2006
49%
2007
I di id l
Individuals
48%
2008
I i i lI
InstitutionalInvestors
F i I
ForeignInvestors
Fi
FinancialInstitutions
i lI i i
C
Companies
i
C
CentralBank
lB k
Bovespa Segment(InvestorsParticipationinTotalValue)
12%
10%
10%
8%
7%
8%
9%
8%
8%
7%
9%
8%
9%
8%
33%
36%
35%
35%
34%
30%
35%
40%
40%
41%
42%
42%
40%
40%
27%
27%
30%
27%
26%
33%
33%
32%
32%
31%
32%
32%
35%
35%
25%
25%
23%
27%
31%
26%
21%
18%
19%
17%
17%
17%
15%
17%
2005
2006
2007
2008
2009
2010
2011
2012
Aug12
Sep12
Oct12
Nov12
Dec12
Jan13
Individuals
InstitutionalInvestors
ForeignInvestors
FinancialInstitutions
Companies
Others
40
Investment Funds
AUMEvolution(inBRLbillions)
2,189
Equities
FixedIncome
1,787
1 703 1,787
1,703
1,513
1,301
657
861
899
10%
11%
2003
2004
1,070
15%
1,375
22%
14%
2007
2008
18%
18%
2009
2010
1,925
14%
15%
11%
11%
2002
2005
2006
2011
2012
PercentofEquityFundAssets
Brazil
W ld id
Worldwide
Equity
funds
40%
Equity
funds
14%
41
3Q12EARNINGS
42
Bovespa Segment
ADTVgrowthandflatmargins
OPERATINGHIGHLIGHTS
ADTVandmargininbasispoints
93Q12 3Q11
93Q12x3Q11:
5.71
5.58
5.91
5.50
5.73
6.6
6.4
7.2
7.6
7.2
2Q12
Margin(bps)
3Q12
3Q11
4Q11
1Q12
ADTV(R$billions)
Averagemarketcap andturnovervelocity
69.3%
66.6%
66.2%
75.0%
+8.7%ADTV=>9.8%growthofcashequities
ADTV
foreign
foreigninvestorsADTVwentup26.2%
investors ADTV went up 26.2% =>>foreign
foreign
HFTsADTVrose24.9%
alltimehighmonthlyADTVofR$8.4billionin
Sep12
recordof1.5milliontradesin9/14
record of 1 5 million trades in 9/14
70.4%
stabletradingmarginsat5.7bps
higherturnovervelocityof70.4%
22
2.2
22
2.2
25
2.5
24
2.4
24
2.4
3Q11
4Q11
1Q12
2Q12
3Q12
6.6%growthintheaveragemarketcapitalization
6 6% growth in the average market capitalization
AverageStockMarketCapitalization(BRLtrillions)
TurnoverVelocity(%)
HFTs:ADTV(R$millions)
( $
) andvolumeparticipation(%)
p
p
( )
10.3%
10.3%
8.5%
1,329.1
1,311.9
174.6
319.3
146.0
249.2
835.1
916.7
873.9
3Q11
4Q11
1Q12
Foreigners
Individuals
1,199.1
325.3
Institutionals
9.4%
9.8%
1,454.1
0,2
268.3
1,368.9
1,185.6
1,043.5
2Q12
3Q12
73,8
251.6
%ofoverallmarket
93Q12x2Q12:
ADTV
ADTV6.1%downcomparedtotheprevious
6.1% down compared to the previous
recordofR$7.6billionin2Q12
margins4.2%higher=>lowerparticipationof
institutionalinvestorsanddaytrades,whichpay
lower fee rates
lowerfeerates
43
BM&FSegment
AverageRPCgrowth
OPERATINGHIGHLIGHTS
ADV(millionsofcontracts)andRPC(R$)
1.106
1.157
1.172
2.5
2.7
2.8
3.4
0.3
0.5
0.3
0.5
15
1.5
0.3
0.5
1.7
2.3
0.4
0.5
1.8
3Q11
4Q11
1Q12
2Q12
3Q12
FX
Indices
Others
+14.7%RPC
2.7
0.3
0.5
1.8
Int.RateBRL
93Q 2 3Q
93Q12x3Q11:
1 269
1.269
1.133
=>depreciationofR$/US$rateimpactingRPC
ofFX(+36.2%)andUSDint.rates(+25.3%)
of
FX (+36 2%) and USD int rates (+25 3%)
contracts;
=>10.1%increaseinRPCforBRLint.ratedueto
concentrationoftradinginlongermaturities
contracts (4th and 5th)
contracts(4thand5th)
RPC(BRL)
BRLInt.Rates volumesbymaturities(%)
57%
8%
16%
15%
65%
4%
7%
7%
3%
2Q12
3Q11
1stMaturity
68%
86%
79%
2ndMaturity
4%
3rdMaturity
2%
4thMaturity
22%
6%
3Q12
4.0%ADV=>dropinADVofBRLint.rate(
2.4%),indices(17.3%)andFX(13.8%)
90%
LowerparticipationofHFTs,duemainlytoa
reduction in ADV of FX and indices contracts
reductioninADVofFXandindicescontracts
2%
5thMaturity
93Q12x2Q12:
HFTs:ADV(thd contracts)andvolumeparticipation(%)
7.8%
419.5
7.2%
24.4
335.2
178.7
24.8
139.6
139.6
148.3
8.0%
412.2
101.4
6.3%
442.5
6.7%
9.8
342.2
224.0
0.9
134.8
134.8
500,0
209 1
209.1
68.2
119.9
50.9
129.5
46.5
140.0
68.7
73.8
58.3
3Q11
4Q11
1Q12
2Q12
3Q12
Equities
FX
Minicontracts
Others
%inOverallVolume
400,0
300,0
200,0
+12.0%RPC=>reflectingthedepreciationof
12 0% RPC
fl ti th d
i ti
f
R$/US$rate(6.5%)andreductionofdaytrade
operationsofBRLint.rates
19.8%ADVcomparedtothepreviousrecordof
R$3 4 illi
R$3.4millioncontractsin2Q12
t t i 2Q12
100,0
44
Netincome
Netincomeimpactedbyafallinfinancialincome
ADJUSTEDNETINCOME
EBITDA
Adjustednetincomedidnotfullycapturetherevenuegrowthduetoaplungein
interestincome
(R$ million)
EBITDAgrowthinlinewithoperatingincome
growth
(R$ million)
27.9
14.1
(3.9)
347.5
+8.1%
375.6
(37 1)
(37.1)
400.6
399.6
3Q11
N t
Netrevenues
E
Expenses*
*
Adjustednet
income
Financial
Fi
i l
Income
I
Incometax
t
3Q12
Adjustednet
income
FinancialIncome:3Q12vs.3Q11
9 R$45.5million, down44.9%
,
y
FinancialRevenue:R$67.6million,down33.7%duemainly
tolowerinterestrates
3Q11
3Q12
OPERATING INCOME
OPERATINGINCOME
(R$ million)
+7.0%
324 1
324.1
346 8
346.8
3Q11
3Q12
FinancialExpenses:R$22.1million,a14.0%growthdueto
depreciationof24.0%inR$/US$
* Excludes stock options plan and tax on dividends from CME Group.
45
FinalRemarks
BVMFbetterpreparedtocaptureopportunities
MAINTAININGMARKETINTEGRITY
OPPORTUNITIESINBRAZILIANMARKETS
Newrealityof lowerinterestrates
Capitalmarketssettobecomeamore
importantalternativeforlongterm
funding
Control,governance,transparencyand
market security
marketsecurity
StrengtheningtheintegrityofBrazilian
capitalmarketstargetinggrowth
WHATISBVMFDOING?
Investingintensivelyintradingandposttradingplatforms
l
d
d
d
l f
Increasingfocusoncustomers(brokersandinvestors):revisitingthefeestructure,investing
inproductdevelopment
Stringentcostcontrols
Stringent cost controls
EnsuringmarketintegritybyestablishingefficientcontrolsandstrengtheningBSM
WHATISALREADYHAPPENING!
Operatingleveragematerialization
Revenuegrowth,despitesloweconomicgrowthscenarioandinternationalinstability
R
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Highpotentialproductshavebeenshowingstronggrowth
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