July 2011

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 industries BM&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 that could cause actual results to differ materially from those projected in this presentation and do not guarantee any future BM&FBovespa performance. The factors that might affect performance include, but are not limited to: (i) market acceptance of BM&FBOVESPA services; (ii) volatility related to (a) the Brazilian economy and securities markets and (b) the highly-competitive industries 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 entrants to the Brazilian markets; (v) ability to keep up with rapid changes in technological environment, including the implementation of enhanced functionality demanded by BM&FBovespa customers; (vi) ability to maintain an ongoing process for introducing competitive new products and services, while maintaining the competitiveness of existing 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 date they were made, and BM&FBovespa undertakes no obligation to update them in light of new information or future development. This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities where such offer or sale would be unlawful prior to registration or qualification under the securities law. No offering shall be made except by means of a prospectus meeting the requirements of the Brazilian Securities Commission CVM Instruction 400 of 2003, as amended.

BVMF STOCK PRICE Recent Performance

BVMF3 recent performance

140

130

BM&FBOVESPA IBOVESPA
IOFs 10/17 R$14.97 Goodwill 11/30 R$13.04
Competition News 01/05 R$13.12

BVMF3 YTD: -21.3% Ibovespa YTD: -10.0%

120

110

100

BATs 02/15 R$11.45

Reductions of Volumes Estimates by the Market

90

Rumors about IOF

Exchanges Mergers 02/08 R$11.20

80

70

60
1/8/2010 31/8/2010 30/9/2010 30/10/2010 29/11/2010 29/12/2010 28/1/2011 27/2/2011 12/4/2011 26/05/2011
Note: updated until June 30, 2011
4

Possible Competition
Important considerations
EASING REGULATION IS NOT EXPECTED
Main requirements: pre-trade controls, self-regulatory (SRO), off exchange trades are not permitted (internalization of orders and OTC), CCP for stocks trading, post-trading at the beneficial owner level Competition in other exchanges was intensified after easing regulation

THE EXCHANGE FEES (TRADING AND POST-TRADING) ARE PAID BY THE FINAL INVESTOR
Differently from USA and Europe, the final investors is the one who pays the exchange fees Brokers couldnt increase their share in the all-in trading cost pie in case of reduction on the exchange fees STOCKS TRADING ALL-IN COST IN BVMF IS COMPETITIVE

Despite the misleading perception, all-in cost in BVMF is competitive compared to other markets
Comparing only the trading fees among exchanges is misleading. BVMF provides higher portion of services than the peers IT INFRASTRUCTURE MOVING TO STATE OF THE ART

There is no gap of IT infrastructure (BRL500 million CAPEX budget for 2010-11)

Increasing participation of HFT via Co-location (moving to sub millisecond latency) RECENT BM&FBOVESPA INITIATIVES (REBALANCING OF FEES) Shift between trading and post-trading fees
5

BRAZILIAN MARKET OPPORTUNITIES

Brazil represents a unique investment opportunity

Rio Olympics 2016 and World Cup 2014

Pre-salt Oil Exploration

Increase in Income Levels

Interest Rate Decline

Brazilian per capita income will rise from US$10k in 2010 to US$20k in 2020 (1)

New growth cycle and investments in infra-structure

Brazil will have the 6th highest world purchasing power by 2013 (Price Coopers) (2)

Development of Mortgage Market

Expansion of Middle Class

Greater Internal Demand

Entrepreneurial Stimulus

(1) LCA Consultores as of Jun/10. (2) Price Coopers as of Jan/10.

7

Equity Market (BOVESPA Segment)

Low penetration in the Brazilian market
Clients base: huge potential in retail and pension funds segments
Number of custody accounts (thousands) Low penetration of equity and derivatives in the main investors portfolios Stable and low interest rate environment encourage more exposure in equities Recent growth in the number of retail investors, but still low compared to other markets Pension funds portfolio
BRL501.5 billion

Jun11 632.4

69.1% BRL168.5 billion

72.3%

128.6

30.9%
2010 Fixed Income and Others

27.7%
2002 % in Securities

Jan-05

Jan-06

Jan-07

Jan-08

Jan-09

Jan-10

Listed Companies
Dec10 Listed Companies (27th in the World)
6,586 5,095 3,741
3,566

Jan-11

Jul-05

Jul-06

Jul-07

Jul-08

Jul-09

Jul-10

Low number of listed companies compared to other countries

3,476

3,345

2,966 1,999 1,798 379

Lack of important economic sectors in the exchange, for instance: oil & gas, infrastructure, retail, IT and pharmaceutical,
Investment cycle may bring new companies and sectors to the exchange
Brazil

India

USA

Canada

Japan China / HK Spain

London Australia Korea

Currently, SMEs are not able to raise money through equity easily
8

Source: ABRAPP, WFE and BM&FBOVESPA

Derivatives Market (BM&F Segment)

Growth in the credit level will favor volumes
Credit: very low credit level and even lower in the case of mortgage transactions
Credit to GDP
Total Credit
Mortgage

Trade Flow (total Imports + Exports in USD billions)

46.3%

370.9 281.3 229.2 280.7

383.6

25.7%

1.8%
Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10

3.7%

2006

2007

2008

2009

2010

Interest Rate in BRL contracts: growth in credit levels, specially in fixed rates, support the increase the activity of financial institutions FX contracts: growth in the amount of foreign trading and change in the culture of the Brazilian entrepreneurs can push up volumes in this group of contracts, mainly in currencies other than US$ Index-based contracts: growth in cash equity market, the launching and development of ETFs and the growth of exposure to equity by institutional investors can drive the growth of these contracts Commodities contracts: cash settled contracts and the change in the behavior of farmers that are becoming more sophisticated
9

MAIN INITIATIVES

10

Launching of new products

Product diversification strengthens revenues and competitive position

Cross-listing of derivatives with CME

Cross-listing of futures contracts (beginning with IBOVESPA Futures, cash-settled soybean futures and mini S&P 500 futures and more will come in the future)

Market maker for options

Bidding process initiated to select equity options market makers for 10 companies and for the IBOVESPA

Growth in ETFs
8 ETFs currently traded 5 new indices developed (IGCT, IBrA, IDIV, IMAT, UTIL) which will be the basis for future ETFs

Launch of Additional BDRs

20 new BDR programs in 1Q11 and bidding process for 10 additional programs in 2Q11 CVM now allows a broader range of investor to trade BDRs

Brazil Easy Investing

Order book in foreign currency (targeting foreign retail investors)

11

Institutional key drivers to attract new investors to the market

New Participants:

Retail Investors: less than 0.5% of the population invest in stocks Marketing campaign that will be released in mass medias (wanna be a shareholder?) and educational programs
HFT: unexplored market by these group of investors IT developments, pricing policy and sales force

Foreign Investors: a high number of investors are not in Brazil yet Strengthening the sales force, quotes in other currencies and DMA
Listed Companies: around 400 companies not properly reflect the diversity of Brazilian Economy Developing a listing segment for SMEs and educational initiatives for entrepreneurs
12

IT Developments

New and robust infrastructure to support the forecast market growth

Market Access

Excellence in IT Solutions and Post-Trading Services

Co-location: Bovespa Segment: launched in Sep10 Market Data Distribution: Unified Market Data Feed - UMDF for both segments (completed in
the 4Q10)

EntryPoint: unified order entry interface for both segments (by 2Q11) ISVs: Trading Technologies (TT) will provide screens for BM&F Segment in 2011 Brazil Easy Investing (partnership with Chi-X): order book in USD and other currencies
Trading Systems (Mega Bolsa and GTS)

New Multi-Asset Trading System: Derivatives (3Q11), Equities (1H12) and Fixed income (2012)

Post-trading Developments

Data Center: rent of a facility for the new back up site and the construction of the main site Clearing Integration: ongoing delivery of some integration basics and project planning for 2012
new clearing infrastructure

13

International Projects
Creating a global market Partnerships with international exchanges - Strategic partnership with CME Group - Asia: MoU and discussions with HKEx and Shanghai Exchanges - Latam: MoU with Chile exchange and discussions with Peru and Colombia Strengthening the sales force in other countries - Offices in New York, London and Shanghai

14

BUSINESS MODEL AND REGULATORY FRAMEWORK

15

Equity Market Settlement Structure - Brazil Compared with USA

Two different regulatory frameworks

BRAZIL
All the trades must be matched on an exchange environment

USA
Brokers can internalize orders

Broker

TRF

Dark Pools

Trading on the Exchange

BVMF

BATS
NYSE

Direct Edge
Nasdaq

Clearing (CCP)

BVMF

DTCC

BVMF

DTCC

Central Depository
Broker Level

Beneficial Owner Level 16

Business Model
Listed Exchange Business Model
Diversified and Integrated Integrated Derivatives Diversified but Not Integrated*

* Do not provide post-trading services for the equity market

Market Capitalization (US$ billions) and 2010 EBITDA Margin (%)

Source: Bloomberg
35
30 25 20 15

Updated until: 07/08/2011

80.1%
70.0% 55.0% 44.0% 23.2 39.0% 70.0% 77.8%

67.0%

63.2% 48.0%

68.4%
56.7%

80,0% 70,0% 60,0% 50,0% 40,0% 30,0%

10 5
-

19.7

15.1

13.7

20,0%

9.4 ICE

9.3 Nyse Euronext

6.7 SGX *

5.9 ASX *

4.6

4.5

3.4

2.5

10,0% 0,0%

HKEx
* 6 months ended on Dec/10 ** EBITDA Margin 2009

CME

Deutsche Boerse

BVMF

LSE **

Nasdaq

TMX **

BME

Diversified and integrated

Derivatives

Diversified but not integrated

EBITDA Margin 2010

17

Brazilian Market Regulatory Framework

Legal requirements: resilience, transparence, clear rules.
Brokers & investors

Regulation prohibits internalization of orders, dark pools and ATS/MTFs, stocks trading in both exchange and OTC simultaneously Settlement and clearing of stocks trading must be done through a CCP Settlement and clearing at the beneficial owner level make the Brazilian market safer and more resilient

Trading

Under the regulation in place, potential competitors would be obliged to provide the same integrated solution, with the same rules and transparency The final investor pays the exchange fee

Pos-Trading

Other exchanges have been seeking integrated models (self clearing models) Naked access is not allowed Naked short selling is not possible

18

BM&FBOVESPA Competitive Strengths

Pricing: competitive all-in cost

All-in trading cost simulation: stock at USD28.0

Trading Settlement Total BVMF Costs Broker fee (one of the alternatives) (a) (b) (c) (a) (b) (c) Bps 0.7 2.75 3.45 1.5 5.0 10.0 4.95 8.45 13.45 cents of USD 0.196 0.770 0.966 0.420 1.400 2.800 1.386 2.366 3.766

+ =

All-in cost (one of the alternatives)

All-in cost in line with the practices in other market

Note: local investment funds and daytrades pay a lower trading fee to the exchange (1.9 bp), what would reduce the all-in cost as follow: (a) USD0.0112; (B) USD0.021; and (c) USD0,035 19

Brazilians stock trading breakdown

End of CPMF (Financial Transaction Tax)

Novo Mercado Launching

Sarbanes-Oxley Act (SOX)

Jun11

27.0%

40.4%

13.4%

25.6% 59.6% 33.9%

Feb-11

Apr-11

1996

2000

2004

2005

2009

2010

1997

1998

1999

2001

2002

2003

2006

2007

2008

Jan-11

May-11

Other USA Venues - Brazilian ADRs

NYSE - Brazilian ADRs

BM&FBOVESPA - companies with ADRs

BM&FBOVESPA (except companies with ADRs)

Source: Bloomberg (in USD traded value of 35 companies with ADRs programs )

IPOs Follow ons Total Dual Listings

*Updated until 7/11/2011

2001 14 14 -

2002 1 5 6 -

Public Offerings in Number of Companies 2003 2004 2005 2006 2007 2008 7 9 26 64 4 8 8 10 16 12 8 8 15 19 42 76 12 2 1 1 -

Mar-11

2009 6 18 24 1

2010 2011* Total 11 10 138 11 10 120 22 20 258 5

20

Jun-11

OPERATIONAL HIGHLIGHTS

21

BOVESPA Segment: operational highlights

Average Daily Traded Value ADTV (BRL billions)
* Updated until: July 15th, 2011

CAGR (2004-10) 32.1%

5.5

7.3

6.5 5.3

6.4

6.5

6.5

6.7

6.1

5.9

5.5

4.9

2.4

1.2

1.6

2004

2005

2006

2007

2008

2009

2010

2011*

Jan-11

Feb-11

Mar-11

Apr-11

May-11

Jun-11

Jul-11*

Number of Custody Accounts (Thousands)

Turnover Velocity ** (12 months average)

66.6% 63.8% 60,8%

640 559 576

581 580

661

640

632 629 626 625 637 632

63.2% 56.4% 42.3%

30.8% 36.8% 29.4%

37.6% 38.7%

2008 2009 2010

1Q10 2Q10 3Q10 4Q10

Jan-11Feb-11Mar-11Apr-11May-11Jun-11

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Updated until: Jun 30, 2011

**Relation of the trading value in the cash market and the market cap of the exchange

22

BOVESPA Segment: capital raising activity

Public Offerings (BRL billions)

IPO

Follow-On

70.1 14.5
46.0

74.4

30.4
8.8 4.3 4,5
2004

34.3
55.6 26.8 7.5
2007 2008

63.2 15.5

22.2 23.8
2009

13.9 8.5 5.4

2005

15.1 15.4
2006

11.2
2010*

6.6
2011**

8.9

Pipeline: already announced to the market

There are 9 offerings in the pipeline

IPOs (7): Camil, Enesa, Copersucar, Petrorecncavo, Inbrands, LG Agronegcios and Abril Educao. Follow-Ons (2): Transmisso Paulista and Tereos.

* Excludes the capitalization with barrels reserves by federal government - BRL74.8 billion in Petrobras offering. ** Updated until July 11h

23

BOVESPA Segment
Potential to increase the number of listed companies
Market Capitalization to GDP (%)*
171% 136%

Hong Kong SAR:

129 %
128%

617%

1,070%

2008
126% 106% 65% 70% 78% 67%
82%

2009

93%

100% 53% 62

100% 53%

90% 74% 52% 36%

74% 66% 67% 39% 21%

Singapore

AustraliaUnited Kingdom Chile

Canada

USA

Korea

China

India

France

Brazil

Japan

Mexico

Market Capitalization by Economic Sector

Dec10
17,9% 26,5% 7,0% 8,4% 11,3% 11,5% 10,6% 11,1% 12,6% 3,8% Oil, Gas and Biofuels Construction and Transportation Telecommunications 5,3% 1,7% 0,3% 2,6% Basic Materials Consumer Non Cyclical Public Utilities Mining Consumer Cyclical Financial Capital Goods and Services Information Technology 8,6%

Dec05
15,7%

22,4%
11,0%

5,0% 0,4%

2,5%
3,6%

* Source: World Bank

24

BM&F Segment: operational highlights

Average Daily Traded Volume ADTV (Thousands of contracts)
3,560 2,725
269

2,824 2,656
95
218
248

3,106
221 300

2,505 1,740 805

187

84

108

1,573 1,521
162

191

89

852
109
501

1,167
124

167

86 168 74 110
422
2005

266
711
2006

68

112 473
988

88 535
789 2008

150

541 80

478

438

62

117

437

522

2,430
323
292

2,199
84

2,258

391

447
843 2009

1,684

1,884

1,937

2,068

2,364

2,552

574
1,217

114 283 99 531 419

1,493
1,458

2004

2007

2010

2011

Jan-11

Feb-11

Mar-11

Apr-11

May-11

Jun-11

Jul-11*

BRL Int. Rate (Thousands)

FX (Thousands)

Index (Thousands)

Others (Thousands)

Rate per Contract - RPC (BRL)

2006 Interest rates in BRL FX rates Stock Indices Interest rates in USD Commodities Mini contracts OTC Total RPC
* Updated until: July 15th, 2011

2007 0.950 1.859 1.501 0.965 3.195 0.054 2.111 1.224

2008 1.141 2.065 2.145 1.283 3.587 0.162 2.355 1.527

2009 0.979 2.161 1.620 1.357 2.307 0.176 1.655 1.365

2010 0.889 1.928 1.564 1.142 2.168 0.128 1.610 1.134

2011 0.883 1.896 1.673 0.965 1.932 0.138 1.553 1.078

J-11 0.794 2.003 1.592 1.143 1.827 0.147 1.412 1.021

F-11 0.877 2.037 1.806 1.159 2.084 0.144 1.414 1.075

M-11 0.853 2.012 1.451 0.989 2.153 0.135 1.359 1.025

A-11 0.750 1.920 1.875 0.951 1.774 0.139 1.367 0.964

M-11 1.111 1.820 1.477 0.801 1.967 0.132 2.107 1.252

J-11 1.053 1.813 1.864 0.944 2.131 0.140 1.535 1.220

J-11* 0.894 1.583 1.373 0.833 1.582 0.131 1.878 1.014

25

0.906 2.244 1.419 1.094 4.749 0.034 1.571 1.247

Interest Rate in BRL Contracts

Structural changes behind the growth in volumes
Interest Rate in BRL Contracts Breakdown by Maturity (thousands of contracts)
1.200

Uncertainty in consensus impacts short term contracts

1.000
800

600 400
200

2007

2008

2009

2010 1st. Maturity

Jul-10

Aug-10

Sep-10

Oct-10

Nov-10 Dec-10 4th. Maturity

Jan-11

Feb-11 Mar-11 Apr-11 May-11 Jun-11

2nd. Maturity

3rd Maturity

5th Maturity

Fixed Rate Credit in BRL billions

700 600 500 400 300

Public Debt / Fixed Rate - in BRL billions

623.6
700
600 500 400 300 200 100 0 Jan-07 May-07 Sep-07 Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09 Jan-10 May-10 Sep-10

608.4 377.3

283.7

200 100 0
Jan-07 May-07 Sep-07 Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09 Jan-10 May-10 Sep-10

Source: Brazilian Central Bank

26

High Frequency Trading (HFT)

HFT will play an important role in both cash and derivatives markets HFT BM&F Segment
(ADTV in thousands of contracts and mkt. share)
1,20

HFT Bovespa Segment

(ADTV in BRL billions and mkt. share)

6.0%
301

10,0%

4.8% 4.4%

3.8% 4.8%
188

3.7% 5.0% 251

20810
17 95 82

6.7% 4.2% 3.9% 3.6% 274 5.4% 3.5% 222

179
17 68 29 51 65 48 67 16 90

1,00 0,80

6.6% 5.7% 4.5% 0.56 4.0% 0.73

0.50

8.7% 5.9% 5.9% 1.00

9,0%

7.6%

8,0%

93

207 42
90 43 74 93 38 77 43 66

222
18

239
18 90

8 102 45

239
4 92 42 101

7,0%
6,0%

2.8% 1.0%
0.3%
81
22 32 18 8 7 5 41 4 20 4

151
53 44

50 77
41 69 155

0,60
0,40 0,20

5,0%

88

0.96

45
101

49 82 118

0.75

0.78

0.90

4,0% 3,0%

2,0%
1,0%

50

65

Jan-11 Feb-11 Mar-11 Apr-11May-11 jun/11

0,0%

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11

Nov-10

Dec-10

Jan-11

Feb-11

Mar-11

Apr-11

May-11

Jun-11

FX

Equities

Mini contracts

Interest Rates in BRL

% in Overall Volume

ADTV - Day Trade (in BRL billions)

% of overall market

Co-location
BM&F Segment (thousands of contracts)
246 232
2.9% 2.7% 2.8% 186 2.9% 173 5.6% 4.8%

Bovespa Segment (thousands of BRL)

256,817 211,097 217,518 217,883 247,923

4.8%

203
4.1% 3.3% 3.2% 2.6%3.2%

164 162

151 156

162

161

162

2.1% 2.1%

1.4%

125 112

125,620 71,952 39,280

84

1 3

25 13 17 20 7 12 15

22,128

18,397

Sept/10 Oct/10 Nov/10 Dec/10 Jan/11 Feb/11 Ma/11 Apr/11 May/11 Jun/11*

* Updated until: June 30, 2011

27

Appendix

28

Fully integrated Business Model

Diversified sources of revenues
Services for issuers, brokers and commodities trading Listing (stocks, bonds, funds, asset-backed securities, Among others )

Trading, Clearing and Depository Activities

Others Services Custody (services provided for funds and other market participants) Market Data

Trading (stocks, derivatives, corporate and government Bonds, funds, spot US Dollar, among others)

Commodities Certification

Central Counterparty (CCP) Clearing and Settlement (for all products)

Indices Licensing Trading Access (Brokers) Central Depository (stocks and corporate bonds) Software Licensing (used by brokerage Houses and other market participants) OTC Derivatives (registration and collateral management)

Securities Lending (stocks and corporate bonds

29

Excellence in IT solutions and Post-Trading services

Managed growth to support retail and high frequency trading: DMA Implementation (Direct Market Access) Trading Systems: reduce latency and increase capacity RCB Development (new BM&FBOVESPA Communication Network)
NET

Traditional DMA

NET

Via DMA Provider

NET

NET

Provider of DMA

Direct Connection
NET

DMA Via Co-location Remote access tracking and maintenance

Application of Co-location

30

BM&FBOVESPA Costs
Seg. BOVESPA Cash Market
Investors in general bps Post-Trading Settlement Custody - Account Maintenance Account without movement or position Account with movement or position of Equities Market assets Fee on the amount in custody* BRL3.00 BRL6.90 0.6 bps 0.6 bps 0.6 bps 2.85 bps Investment Funds and Clubs 1.9 bps Day-trade (for all investors) 1.9 bps

from BRL 0 to BRL 1,000,000.00

from BRL 1,000,000.01 to BRL 10,000,000.00 from BRL 10,000,000.01 to BRL 100,000,000.00 from BRL 100,000,000.01 to BRL 1,000,000,000.00 from BRL 1,000,000,000.01 to BRL 10,000,000,000.00 starting from BRL 10,000,000,000.01

1.30 bps
0.72 bps 0.32 bps 0.25 bps 0.15 bps 0.05 bps

Note: *This fee is not charged for nonresident investors. * Fee exemption for custody positions of up to BRL300,000.00 will be maintained

31

High Frequency Trading - HFT New Products Pipeline

Main Characteristics

New pricing policy (both segments)

Differentiated fees by tier only for day trades transactions executed by a registered HFT A HFT Committee created to approve and monitor the HFTs The new pricing policy is implemented in Nov10

Bovespa Segment
In the Bovespa Segment, different tiers were created for individuals and non-individuals HFT investors Individuals Settlement Fee ADTV tier (BRL millions) Trading Fee (%) (%) Up to 4 (inclusive) 0,0070 0,0180 From 4 to 12.5 (inclusive) 0,0050 0,0180 From 12.5 to 25 (inclusive) 0,0020 0,0180 From 25 to 50 (inclusive) 0,0005 0,0175 Above 50 0,0005 0,0155 Non-individuals Settlement Fee ADTV tier (BRL millions) Trading Fee (%) (%) Up to 20 (inclusive) 0,0070 0,0180 From 20 to 50 (inclusive) 0,0050 0,0180 From 50 to 250 (inclusive) 0,0020 0,0180 From 250 to 500 (inclusive) 0,0005 0,0175 Above 500 0,0005 0,0155

BM&F Segment
In the BM&F Segment, the 70% flat discount was replaced by a volume tiered based discount, only for day trades, divided into trading and registration fees
32

BOVESPA Segment: foreign investment flow

Monthly Net Flow of Foreign Investments* (in BRL billions)

9.1 8.0 6.1 3.43.8 1.2 0.5 0.5 -0.4 -0.6 -1.2 5.5 4.2 5.2 2.1 1.4 0.7 -0.1 -0.6 -1.5 5.8 4.4 3.4 1.5 2.1 1.7 0.70.8 0.4 -0.3 7.3 10.0

2.5

-1.0 -2.9 -4.7

-1.8 -2.3

-2.1

-1.4

-4.7 -6.3

*Includes regular trades and public offering; updated until June 30th, 2011. 33

Operational highlights: investor s participation in Total Volume

BM&F Segment (Investors Participation in Total Volume)

2% 7% 2% 7% 15% 25% 2% 9% 3% 8% 19% 3% 8% 20% 2% 4% 22% 2% 4% 19% 2% 3% 19% 2% 3% 20% 2% 4% 20% 2% 4% 24% 2% 5% 23%

12%
24%

17%
23%

23%

24%

30%

31%

31%

32%

33%

31%

31%

56%

51%

49%

48%

45%

42%

45%

44%

42%

41%

38%

39%

2005

2006
Central Bank

2007

2008

2009
Individuals

2010

Jan-11
Foreign Investors

Feb-11

Mar-11

Apr-11

May-11

Jun-11

Companies

Institutional Investors

Financial Institutions

Bovespa Segment (Investors Participation in Total Value)

2%

12% 33%

10%
36%

2%

10%
35%

2%

8% 35%

3%

7%

2%

8% 30%

2%

8% 35%

2%

9% 34%

2%

8% 32%

2%

10%
34%

1%

8% 34%

3%

9% 35%

1%

34%

27%

27%

30%

27%

26%

33%

34%

33%

35%

34%

33%

33%

25%
2005

25%
2006

23%
2007

27%
2008

31%
2009

26%
2010 Foreign Investors

22%
Jan-11

22%
Feb-11

23%
Mar-11

21%
Apr-11 Companies

22%
May-11 Others

21%
Jun-11

Individuals

Institutional Investors

Financial Institutions

34

SUSTAINABILITY

35

BM&FBOVESPA Sustainability Mission

BM&FBOVESPAs Sustainability Mission

Support, promote and practice the concepts and actions towards economic, social and environmental responsibility with the purpose of contributing to sustainable development

Novo Valor BM&FBOVESPA

Program created in 2010 to guide sustainability actions of BVMF.

Goal
Induce and promote the sustainable development of the BM&FBOVESPA and the capital market, involving all audiences, including investors, companies and brokerages.

36

BM&FBOVESPA Sustainability Program

Working in four dimensions

1. Natural Resources Mgt

GHG Inventory Materials recycling program Ecoefficiency Green IT Member of Carbon Disclosure Project South America Board of Empresas pelo Clima, FGV

4. Stakeholder Engagement
Instituto BM&FBOVESPA Stakeholders Global Compact Signatory (1st exchange) PRI Signatory (Principles for Responsible Investment) Organization Stakeholder GRI (Global Reporting Initiative); Member of Board for GRI Brazil

2. Governance
Novo Mercado Advisory Boards Sustainability Committee Sustainability Comission

3. Products and Services

Indexes: ISE, ICO2 and IGC/IGCT Carbon Market Em Boa Companhia (program with companies)

37

1Q11 EARNINGS

38

1Q11 Highlights
Record BM&F volumes and double digit growth in HFT and ETF at Bovespa
Operational and Financial Highlights
Net Revenues (BRL millions)

Net revenue of BRL472.2 million. 2.5% year-over-year growth, driven by strong volumes in derivatives BM&F trading volume sets new record. Daily average of 2.9 million contracts in 1Q11. Also set a new record in April 2011 with 3.5 million contracts Adjusted operating expenses of BRL140.6 million in line with the budget guidance range for the year and lower than 4Q10 Adjusted EPS of BRL0.196 vs. BRL0.202 in 1Q10 Payout: payment of BRL166.6 million in dividends and interest on capital, achieving 80% of GAAP net income in 1Q11

460.5
2.5%

472.2

1Q10

1Q11

Adjusted EBITDA (BRL millions) / Adjusted EBITDA Margin (%) 74.9%

70.4%
-3.6%

Strategy Execution

345.0

332.6

Increase in High-Frequency Trading in equities markets (6.1% of overall value traded in 1Q11) ETF activity increasing with average daily trading volume for ETFs up 59% from 1Q10, reaching R$39.5 million Strategic priorities: cross-listing of derivatives with CME Group, market maker for options, ETFs and BDR programs
1Q10 1Q11

Adjusted Net Income (BRL millions)

EPS: 0.202

EPS: 0.196
-5.2%

405.1

384.2

1Q10

1Q11

39

Revenues 1Q11 vs. 1Q10

Revenues in BM&F segment grew 10% year-over-year
% Change 1Q11 x 1Q10 2.6% -1.9% 9.7% 2.1% 5.8% -17.3% 46.4% 0.2% -2.0% 43.3%

In BRL thousands Gross operating revenues BOVESPA Trd. / Sttmnt. BM&F Trd. / Sttmnt. Other operating revenues Depositary and custody Vendors Securities Lending Trading access (Brokers) Listing Bank

1Q11 525,477 251,716 186,662 87,099 22,105 16,224 15,405 12,470 11,276 4,711

1Q10 512,049 256,494 170,213 85,342 20,890 19,628 10,520 12,446 11,511 3,288

17% 48%
35%

Other
Bolsa Brasileira de Mercadorias

2,489
2,419

5,945
1,114

-58.1%
117.1%

Bovespa Trd. / Sttmnt

Operating performance BOVESPA 1Q11 1Q10 % Change 1Q11 x 1Q10

BM&F Trd. / Sttmnt Other operational revenues

ADTV - in BRL millions Margin - in bps

ADTV - in thousands RPC - in BRL

6,735.4 6.017
2,865.8 1.040

6,599.6 6.361
2,453.6 1.126

2.1% -0.34bp
16.8% -7.6%
40

BM&F

BOVESPA Segment Trends

Main drivers for the equity market

Once the level of equity market uncertainty decreases, most of the growth drivers should be back on track
Drivers of recent market performance

Market trends

Macroeconomic scenario and market expectations will be key factors influencing future performance Foreign inflows are expected when the level of uncertainty and risk perception is reduced

Price effect: large companies stocks have underperformed Foreign investor outflows in the recent quarter Low level of retail investor activity

Retail volumes should go back to normal levels of trading once market performance improves

Companys growth strategy to boost volumes ETFs are still incipient but they are growing fast Market maker for options on single stocks and Ibovespa HFTs will become an important player in the market

ADTV (in BRL billions)

4.9 1.2 2004 1.6 2005 2.4 2006 2007

5.5

5.3

6.5

6.5

7.3

6.5

6.7

2008

2009

2010

Jan-11

Feb-11

Mar-11

Apr-11
41

BM&F Segment Trends

BM&F has set volume records in four out of the past five quarters

Recent Performance

Companys growth strategy to boost volumes

Strong performance of interest rates in BRL contracts has driven volumes in the segment

Cross-listing of new products with CME Group HFTs: the launching of the new trading platform should increase the volumes traded by these market participants

Low BRL-USD volatility reduced FX contract volumes in recent months (some negative impact on HFTs)

Partially compensated by the growth in interest rates in USD

ADTV (thousands of contracts)

3,106 306
437 3,482 408

2,505 280 1,167 191 266 711

2,656 280 438

2,824 365 391

522

1,740 279
473

1,573
250 535

1,521 230 447 843

541

805 273 110 422

852 183 168 501

1,684

1.937

2,068

2,364

2,552

988

789

2004

2005

2006

2007

2008 2009 BRL Int. Rate

2010 FX

Jan-11 Others

Feb-11

Mar-11

Apr-11

42

Adjusted Operating Expenses Lower Than Previous Quarter

OPEX supports growth initiatives; in line with the managements guidance
Expenses breakdown 1Q11 In BRL thousands 1Q11 188,714 140,628 1Q10 133,804 115,502

12% 7% 5%
52% 12%
Operating expenses Adjusted operating expenses

% Change 1Q11/1Q10 41.0% 21.8%

4Q10 188,665 159,035

% Change 1Q11/4Q10 0.0% -11.6%

Increase over 1Q10 to support hiring, IT investment and marketing to retail investors Increase in stock option expenses from 11 program; concentrated in 1Q11 Increase in depreciation expense from IFRS adoption and 2010 investments Adjusted OPEX in line with the managements guidance range

12%
Personnel Dep. and Amort. Marketing Data processing Third party serv. Other

(in BRL millions)

167.6 143.5 9.0 9.3 115.5 7.0 11.5 124.4

188.7 5.5 15.1 145.8 9.4 18.9

188.7 24.5 22.3

133.8

159.0

140.6

1Q10

2Q10

3Q10

4Q10

1Q11

Adjusted Operating Expenses

Depreciation

Stock option

Others
43

Strategic investments to enhance growth

Increases in headcount and marketing to support growth strategy

Adjusted Personnel (1Q11 x 1Q10)

Increase of 28.3% in the average headcount (particularly in IT and business development areas), in line with our growth strategy to strength the core business areas of the Company Due to the recognition of the expenses of a new stock option program granted in 2011, the amount of stock option expenses recognized in the 1Q11 rose to BRL24.5 million (most of this additional expense is concentrated in the 1Q11). In 2010 there was no new program granted Collective bargaining agreement: 6% annual salary increase (Aug. 2010)

33.2%

Stock Option Expenses (R$ millions)

Personnel Expenses (R$ millions)

Adj. Personnel Stock Options 9.0

59,6 30,9

9.4
5.5

24.5

Adjusted Personnel (1Q11 x 4Q10)

9.9%

7.0 57.4

54.7

66.2

80.9

72.9

The 4Q10 was impacted by profit-sharing distribution to employees.

2009

2010

1Q10

2Q10

3Q10

4Q10

1Q11

Marketing (1Q11 x 1Q10)

151.3%

Programs to attract more retail investors to the market

Marketing and Promotion Expenses R$ millions Average: BRL13.6

Intensification of marketing activities and strengthening of Financial Education campaigns

5.3
1Q10

38.9%
9.9
2Q10

15.8

11.4
4Q10

13.4
1Q11

3Q10

44

Financial Highlights
Solid financial position due to strong cash generation; continue to return cash to shareholders through buybacks and distributions

Cash and cash equivalents (BRL millions)

Financial income

263
4,809

BRL63.2 million in 1Q11: 4.7% lower than 1Q10

1,668

Financial revenues: BRL81.6 million, 20.8% higher than 1Q10 due to the increase of the average interest rate Financial expenses: BRL18.4 million, compared to BRL1.2 million in 1Q10, mainly due to the July 10 bond issuance

1Q11

2,418(1)

460

Investments (Capex)

269

1,677
3,435

BRL29.3 million in 1Q11: BRL21.8 million in IT and BRL7.5 million in facilities and equipment; Capex within guided range

4Q10

993 496

Buyback program

Market participants cash collateral and others*

From Aug. 2010 until April 2011, 53.1 million shares were bought within the current program (BRL691.4 million) The company can buy up to 60 million shares

Restricted f unds Subsidiaries** Available f unds

(1) Includes BRL1.5 billion related to payment anticipation that was settled on April 1st, 2011.

Earnings distribution (payout)

Approval of BRL66.6million as dividends and BRL100.0 million as interest on capital in 1Q11 Coupled with dividends of R$50.0 million declared in Feb/11, a 80% Payout ratio was achieved in 1Q11 (BRL216.6 million)

*Includes market participants cash collateral, earnings and rights on securities in custody and dividends and interest on capital pending payment ** Includes third-party deposits (BRL142 million in 4Q10 and BRL118 million in 1Q11) and restricted funds (BRL11 million in 4Q10 and in 1Q11) from BM&F Settlement Bank,

45

Income Statement Summary

BRL thousands Operating Revenues Net Operating Revenues

1Q11
525,477 472,157 (188,714) 283,443 37,541 63,193 384,177 270,756 308,060 65.2% 384,216 0.195648 332,604 70.4% (140,628)

1Q10
512,049 460,517 (133,804) 326,713 66,307 393,020 284,467 336,015 73.0% 405,114 0.201844 345,015 74.9% (115,502)

% Change 1Q11 / 1Q10

2.6% 2.5% 41.0% -13.2% -4.7% -2.3% -4.8% -8.3% -7,7 pp -5.2% -3.1% -3.6% -4,5 pp 21.8%

4Q10
523,299 470,142 (188,665) 281,477 15,096 75,375 371,948 261,467 302,374 64.3% 367,978 0.184677 311,795 66.3% (159,035)

% Change 1Q11/4Q10
0.4% 0.4% 0.0% 0.7% 148.7% -16.2% 3.3% 3.6% 1.9% 0,9 pp 4.4% 5.9% 6.7% 4,1 pp -11.6%

Operating Expenses
Operating Income Equity account Financial Income Income before Taxes Net Income* EBITDA EBITDA Margin Adjusted Net Income Adjusted earnings per share (in BRL) Adjusted EBITDA Adjusted EBITDA Margin Adjusted Operating Expenses

* Net Income attributable to BM&FBOVESPAs Shareholders

46

Reconciliation of GAAP to Adjusted Net Income

1Q11 GAAP and adjusted net income reconciliation (BRL millions)

270.8

124.1 24.5

(35.2)

384.2

Gaap net income

Stock options

Deferred liability

Equity Accounting

Adjusted net income

In BRL thousands

1Q11

1Q10

% Change 1Q11/1Q10 -4.8%

-

4Q10

% Change 1Q11/4Q10 3.6%

-

Gaap net income (+) Stock options (+) Deferred liability (-) Equity accounting* Adjusted net income

270,756
24,544 124,134 35,218 384,216

284,467
9,000 111,647 0 405,114

261,467
9,421 110,214 13,124

-5.2%

367,978

4.4%

* CME Group equity accounting net of taxes

47

Reconciliation of Adjusted Operating Expenses

BRL thousands Total Expenses (-) Depreciation

1Q11

1Q10

% Change 1Q11/1Q10 41.0% 139.7%

4Q10 188,665 18,925

% Change 1Q11/4Q10 0.0% 17.8%

188,714 133,804 22,294 9,302

(-) Stock options plan

(-) Tax related to equity accounting (-) Provision for doubtful account Adjusted Expenses

24,544
2,323 (1,075) 140,628

9,000
115,502

172.7%
21.8%

9,421
1,972 (688) 159,035

160.5%
17.8% 56.2% -11.6%

48

Balance Sheet
(In BRL thousands)

ASSETS
Current assets Cash and cash equivalents Financial investments Others Non-current assets Long-term receivables Financial investments

03/31/2011 3,779,796 1,542,301 2,031,429 206,066,00 20,252,482 1,396,972 1,235,124

12/31/2010 2,547,589 104,017 2,264,408 179,164 20,086,386 1,216,812 1,066,920 149,892 2,286,537 367,134

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities Collateral for transactions Others Non-current liabilities Financing Deferred Inc. Tax and Social Contrib. Others

03/31/2011 2,751,091 2,373,947 377,144 1,906,389 986,830 858,129 61,430

12/31/2010 1,416,204 954,605 461,599 1,798,723 1,010,059 732,074 56,590

Others Investments Property and equipment

161,848 2,265,098 361,071

Shareholders' equity Capital Capital reserve

19,374,798 2,540,239 16,677,595 140,144 16,820 24,032,278

19,419,048 2,540,239 16,523,181 200,046 16,283 22,633,975

Intangible assets

16,229,341

16,215,903

Others Minority interest in subsidiaries

TOTAL ASSETS

24,032,278

22,633,975

TOTAL LIAB. AND SHAREHOLDERS' EQUITY

49

Capital Expenditures and Operating Expenses

Focused on cost control while ensuring BVMFs technology platform is world-class
Investments over 2010-2011: will put the BVMF in the state-of-the art in technology Main projects - CAPEX Realigning the size of the company to support future growth Adjusted OPEX

New trading systems New data-center Integration of clearinghouses Infrastructure improvement

CAPEX Evolution (BRL millions)
268.4

Realigning personnel
business area

focusing the core

Markets and Products developments Intensification of promotion and

publicity activities

Adjusted Operating Expenses x Budget (BRL millions)

636
255.0 235.0

635.0 625.0
615.0

544 447

95.6

2009

2010

2011e

2009

2010

4Q10 Annualized

2011 Budget
50

2011 Budget in line with the annualized 4Q10