BM&FBOVESPA

Sandler O’NeillJune, 2009June, 2009

1

Forward Looking Statements

This presentation may contain certain statements that express the management’s 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&F Bovespa works in.The verbs “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “plan,” “predict,” “project,” “target” 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&F Bovespa performance.The factors that might affect performance include, but are not limited to: (i) market acceptance of BM&F services; (ii) volatility related to (a) the Brazilian economy and securities markets and (b) the highly-services; (ii) volatility related to (a) the Brazilian economy and securities markets and (b) the highlycompetitive industries BM&F Bovespa 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&F customers; (vi) ability to maintain an ongoing process for introducing competitive new products and ; ( ) y g g p g p pservices, 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&F Bovespa 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&F Bovespa 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

2

2003, as amended.

Main Points

BUSINESS MODEL

FINANCIAL HIGHLIGHTS / NEW PRICING POLICYFINANCIAL HIGHLIGHTS / NEW PRICING POLICY

VOLUMES

IT DEVELOPMENTS

BRAZILIAN REGULATORY FRAMEWORK

3

Fully Integrated Business Model

Services for Issuers andCommodities trading

Trading, Clearing and Depository Activities Other Services

Listing(stocks, bonds, funds,

asset-backed securities, among others)

Trading(stocks, derivatives, corporate and government

bonds, funds, spot US Dollar, among others)

Custody(services provided for

funds, and other marketparticipants)

CommoditiesC tifi ti

Central Counterparty (CCP)Clearing and Settlement

Market Data

Certification Clearing and Settlement(for all the products)

Indices Licensing

Central Depository(stocks and corporate bonds)

Software Licensing( d b b k

Securities Lending(stocks and corporate bonds)

(used by brokeragehouses and other

market participants)

4

(stocks and corporate bonds)

Equity Market Settlement StructureBrazil compared with USA

BRAZIL US

OTC Dark Pools

Trading BVMF ATS ECN

OTC Dark Pools

Cl i (CCP)

NYSE NASDAQ

Clearing (CCP) BVMF

BVMF

DTCC

DTCC

C l

BVMF DTCC

Central DepositoryBroker Level

5

Beneficial Owner Level

Revenues

Gross Revenues Composition – 1Q09

1Q09 %1Q08

(Pro Forma)%

Variation1Q09/1Q08

Gross Operational Revenues 351,918 100.0% 440,919 100.0% ‐20 2%

BRL Thousands

Gross Operational Revenues 351,918      100.0% 440,919         100.0% 20.2%Bovespa Seg. ‐ Trd. / Sttlmnt. 158,196        45.0% 230,386           52.3% ‐31.3%BM&F Segment ‐ Trd. / sttlmnt 127,170        36.1% 153,391           34.8% ‐17.1%Derivatives 121,434      34.5% 148,664         33.7% ‐18.3%Foreign Exchange / Securities 5,736           1.6% 4,727              1.1% 21.3%

Other Operational Revenues 66,552          18.9% 57,142             13.0% 16.5%Depositary and custody 16 084 4 6% 14 319 3 2% 12 3%Depositary and custody  16,084        4.6% 14,319            3.2% 12.3%Vendors 11,521        3.3% 9,688              2.2% 18.9%Listing 10,621        3.0% 7,123              1.6% 49.1%Trading access (Brokers) 9,475           2.7% 3,319              0.8% 185.5%Securities Lending 6,127           1.7% 15,380            3.5% ‐60.2%Dividends 5,371           1.5% ‐                   0.0% ‐BM&F Bank 1,971           0.6% 615                  0.1% 220.5%

• BM&F Trading: new price grid based on volumes: February 16th 2009

, 220.5%Brazilian Commodities Exch. 1,406           0.4% 932                  0.2% 50.9%Commodities classification fees 215              0.1% 171                  0.0% 25.7%Others 3,761           1.1% 5,595              1.3% ‐32.8%

Net Operational Revenues 316,548      89.9% 396,031         89.8% ‐20.1%

• BM&F Trading: new price grid based on volumes: February 16th, 2009

• BOVESPA Trading: progressive reduction of clearing fees charged to retail investors and private and public companies in the cash market: beginning on May 4th, 2009

D it i d ti f t h t b d l d t d • Depository: progressive adoption of a percentage charge system based on value under custody (for Brazilian residents with more than BRL 300 thousand under custody): beginning on May 4th, 2009

• Securities Lending: rebate (5 bps) to the lenders, except for non residents: beginning on May

6

g ( p ) , p g g y4th, 2009

• Market Data: since Apr’09 - closer to international prices

Expenses

Adjusted Operational Expenses* – 1Q09

1Q091Q08

(Pro Forma)Variation

1Q09/1Q08Operational Expenses (148,760)          (132,550)          12.2%

BRL Thousands

p p ( ) ( )   Personnel (85,462)             (54,968)             55.5%   Data  processing (26,683)             (35,567)             ‐25.0%   Deprec. and Amortization (8,951)                (7,777)                15.1%   Third Party Services (9,119)                (9,228)                ‐1.2%   Maintenance (2,826)                (3,243)                ‐12.9%   Communications (4,991)                (4,224)                18.2%   Leases (825)                    (972)                    ‐15.1%   Supplies (477)                    (516)                    ‐7.6%   Marketing (2,292)                (7,153)                ‐68.0%   Taxes (495)                    (1,513)                ‐67.3%Board Compensation (1 129) (2 036) 44 5%   Board Compensation (1,129)                (2,036)                ‐44.5%

   Other (5,510)                (5,353)                2.9%

Adjusted Operational Expenses* (103,009)            (124,773)            ‐17.4%Adjusted Personel** (48,662)             (54,968)             ‐11.5%

• Guidance of Operational Expenses of BRL 450 million in FY09 (excluding depreciation and stock • Guidance of Operational Expenses of BRL 450 million in FY09 (excluding depreciation and stock option plan costs)

7* Excluding depreciation, severance and stock option plan costs. ** Excluding severance and stock option plan costs.

Capital and Balance Sheet Highlights

• Cash and Cash Equivalent: BRL 3.15 billion held at end of 1Q09 (short + long term)

• Includes cash collateral of BRL 1.14 billion and restricted funds of BRL 610 illimillion

• Goodwill Amortization: BRL 245.5 million in 1Q09 (net tax impact of BRL 79.6 million)

• Effective tax rate of 3.6% in 1Q09

• Payout: BRL 112 million in interest on shareholders’ equity, equivalent to R$0.0559 h hi h t t R$0 0475 t f ithh ldi i tper share, which amounts to R$0.0475 net of withholding income tax

• Paid out on May 29, 2009, based on the position as of May 15, 2009

B b k t 71 3 illi h• Buyback program: up to 71.3 million shares

• Program earlier terminated (Board Meeting on May 12, 2009)

64 1% (45 7 million shares) bought at the average price of BRL 5 85 Total of • 64.1% (45.7 million shares) bought at the average price of BRL 5.85 – Total of BRL 267.2 million

• Stock Option and Leasing Expenses: non-cash charge of BRL 19.0 million taken in 1Q09 to adjust our Financial Statements to the new accounting standards moving

8

1Q09 to adjust our Financial Statements to the new accounting standards, moving towards IFRS

Operational HighlightsBM&F Segment

ADTV (millions of contracts)

1.61 1.97 1.81

1.56 1.76 1.77 1.66

1 371.59 1.47 1 36

1.75 1.56 1.46 1.37

1.09 1.11 1.36 1.26

RPC (BRL)

1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09

1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 J‐08 A‐08 S‐08 O‐08 N‐08 D‐08 J‐09 F‐09 M‐09 A‐09 M‐09

Interest Rates in BRL 1.031       0.988       1.049       1.088       1.102       1.064       1.098       1.260       1.510       1.391       1.145       0.865       0.796       0.939       0.923       0.921       1.076      

FX Rates 2.226       2.071       1.937       1.847       1.850       1.785       1.767       1.867       2.430       3.041       2.586       2.269       2.183       2.397       2.653       2.543       2.347      

Stock Indices 1.279     1.521       1.668       2.013     2.132     2.460     2.156     2.288     2.039     2.138      1.398     1.630     1.323     1.792     1.564     1.901     1.569     

Interest Rates in USD 1.108       0.964       0.891       1.032       1.078       1.057       0.773       0.844       1.250       2.037       1.501       1.678       1.417       1.469       1.790       1.859       1.691      

Commodities 2.921       3.266       3.590       3.670       3.283       3.892       3.871       3.734       3.829       4.818       2.309       1.867       1.622       2.298       2.344       2.411       2.372      

Web Trading 0.034       0.054       0.069       0.105       0.155       0.160       0.151       0.161       0.166       0.170       0.167       0.184       0.171       0.189       0.192       0.206       0.186      

OTC 2 764 2 239 1 904 2 388 2 057 2 322 2 389 2 405 3 348 3 195 2 765 1 807 1 646 2 358 3 175 1 588 2 118OTC 2.764     2.239       1.904       2.388     2.057     2.322     2.389     2.405     3.348     3.195      2.765     1.807     1.646     2.358     3.175     1.588     2.118     

Total RPC 1.302       1.274       1.320       1.416       1.401       1.381       1.337       1.567       1.896       2.071       1.732       1.414       1.213       1.484       1.361       1.440       1.547      

9

Operational HighlightsBovespa Segment

ADTV (BRL Billions)

3 64.5 5.0

6.6 5.9 6.55.6

4.8 5.5 5.33.8 3.8 3.6 4.1 4.0

4.9 5.43.6 3.6

1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09

Daily Average Number of Trades (Thousands)

Number of Investors (Thousands) Turnover Velocity* (annualized)

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

Operational Highlights

BM&F Segment (Investor’s Participation in Total Volume)

Bovespa Segment (Investor’s Participation in Total Value)

11

Bovespa SegmentForeign investment flow

12

IT DEVELOPMENTSIT DEVELOPMENTS

13

IT DevelopmentsCo location infrastructure

CO LOCATION AREA RACKS

BM&FBOVESPA WILL BE PREPARED FOR THE CO-LOCATION FOR BM&F SEGMENT IN JUN’09 AND FOR BOVESPA SEGMENT IN THE 3Q09

CO‐LOCATION AREA ‐ RACKS

Rack (40Us) H lf R k (20U ) Racks´lay out at theRack (40Us) Half Rack (20Us)

Unit Hosting

Structure where are installedh i h d )

Racks lay‐out at the co‐location´s area

14

the switches and servers)

Bovespa SegmentTrading system development

User DistributionIntermediary(CM/Broker)

BM&FBOVESPA

BVMF / HP

May, 2009

MEGABOLSA STATIONSCOM, SNEG, SCOT

NYSE Euronext

Access Via Intermediary

NETWORK

SLE 

GL Tradey

GLWIN

NETWORK

HUBNSC V900

Traditional DMA 

Homebroker

NETWORK NETWORKMulti Gateway

HUB

Homebroker

268454299RTT J ’09 135

15

RTT – May’09 54 10153 584

268454299RTT – Jan’09 135

Bovespa SegmentTrading system development

User DistributionIntermediary(CM/Broker)

BM&FBOVESPA

BVMF / HP

2H09

MEGABOLSA STATIONSCOM, SNEG, SCOT

NYSE Euronext

Access Via Intermediary

NETWORK

SLE 

GL Tradey

GLWIN

A ISV

NETWORK

HUBNSC V900

New Multi Gateway

Traditional DMA 

Homebroker

Any ISV

NETWORK NETWORK

HUB

Via DMA Provider

Bloomberg TradeBook

Thomsom Reuters

Others

Homebroker

NETWORKDMA Provider

Via DMA      Co‐location

Remote access – tracking and maintenance

Application of Co‐location (ATS)NETWORK

268454299RTT J 09 135

16

RTT – Forecast 1 1016 50

268454299RTT – Jan 09 135

DMA and CME order routing evolution

DMA EVOLUTION

• Trades through DMA represented 6.5% of total BM&F Segment ADTV in May’09

ORDER ROUTING AGREEMENT WITH CME Group (GLOBEX)

• Initial flow starting in Mar’09 with an ADTV of 25.8 thousand contracts in May’09

ALGOTRADERS PARTICIPATION IN BM&F SEGMENT• May’09: 1.23% (2.46% in FX and 2.56% in Indices)• Apr’09: 0.53% (1.8% in FX and 0.23% in Indices)p ( )• Mar’09: 0.45% (1.53% in FX and 0.26% in Indices)

DMA Evolution CME Order Routing Evolution

17

CME Globex Order Routing Agreement

Routing Order GLOBEX‐GTS – Number of Contracts Traded 

60,000

80,000

0

20,000

40,000

Routing Order GLOBEX‐GTS – Number of Trades

0

6,000

8,000

0

2,000

4,000

18

0

5‐m

ar10

‐mar

13‐m

ar18

‐mar

23‐m

ar26

‐mar

31‐m

ar3‐

abr

8‐ab

r14

‐abr

17‐a

br23

‐abr

28‐a

br27

‐mar

30‐a

br6‐

mai

11‐m

ai14

‐mai

19‐m

ai22

‐mai

27‐m

ai

Globex Routing AgreementGlobex to BM&FBOVESPA flow

US BRAZIL

FCM prop position Investors

CME GroupGlobex

BM&FBOVESPA

GlobexNetwork

position

GTSNetwork

Investors

Investors

Investors

MATCHING

Investors

FCM

Investors

Some FCMs (Futures Commodities Merchant) should offer DMA access to BVMF derivatives to

their clients

19

their clients

BM&FBOVESPA is helping the main back‐office system providers to adapt their systems

Trading of Future Ibovespa Contracts by US residents pending to be approved by CFTC

BRAZILIAN REGULATORY FRAMEWORK

20

Equity Trading in Brazil (Regulation)

RULES RELATED TO BLOCK TRADING

• Shares listed in exchange markets can be traded only in exchange Shares listed in exchange markets can be traded only in exchange environment

• Absence of OTC market

• Absence of alternative trading system, including dark pools

• Relevant restrictions related to block trading (CVM Instruction No 168)Relevant restrictions related to block trading (CVM Instruction No 168)

• Auction - 1 hour advance announcement: quantity above 10 times the national average volume or in the 1% - 2,99% range of common h i 3% 4 99% f f d hshares or in 3% - 4,99% range of preferred shares

• Auction - 24 hours advance announcement: quantity in the 3% - 6% range of common shares or in the 5% - 20% range of preferred range of common shares or in the 5% 20% range of preferred shares

• Auction - 48 hours advance announcement: quantity higher than 6% f h 20% f f d h

21

of common shares or 20% of preferred shares

Equity Trading in Brazil (Regulation)

POSSIBLE CHANGES IN THE EXCHANGES REGULATORY FRAMEWORK

• On April 28th, 2009 CVM gave notice of public hearings of an instruction • On April 28th, 2009 CVM gave notice of public hearings of an instruction draft which, amongst other subjects, deals with best execution rule

• In the justifications section the CVM stated:

• “That measure gains greater importance in an scenario where competition between environments or systems for trading the same security is established. The CVM regulation already allows for security is established. The CVM regulation already allows for simultaneously trading of almost all securities, excepted shares listed in exchange markets, which can be simultaneously traded in another exchange only. Despite that, it is CVM intention to analyze this last

i i i i ”restriction to competition.”

SOME RULES SHOULD NOT CHANGE

• Obligation of a CCP in all trades at the beneficial owner level

• Prohibition of internalization of orders at the brokerage level

22

Exchanges and Block Trading SystemsBrazilian ADRs: Brazil vs. USA

THERE ARE 37 BRAZILIAN COMPANIES WITH ADRs PROGRAMS (LEVEL 2 AND LEVEL 3).

• Increase on Block Tradings’ share since 2007 while the NYSE share has been decreasing

May’09In Traded Value

33.5%

16.0%

20 7%

29.8%

20.7%

23Source: Bloomberg

APPENDIX

24

Board Members (2009 – 2010)

BOARD MEMBERS

• Armínio Fraga (Chairman)* - Gavea Investimentos

• Claudio Haddad* - Ibmec

• Fabio de Oliveira Barbosa* - Vale (CFO)

• José Roberto Mendonça de Barros* - Economist and Consultant

• Marcelo Fernandes Trindade* - Lawyer

• Rene Marc Kern* - General Atlantic

• Renato Diniz Junqueira – Intercap

• Candido Botelho Bracher – Itau BBA

• Luis Stulhberger – Credit Suisse Hedging-Griffo

• Craig Donohue – CME Group

• Julio Siqueira de Araújo – Bradesco (Vice President)

25

* Independents

BM&FBOVESPAOne-stop-shop

Trading, Clearing and Settlement Services

Cash Market Derivatives Market

Equities- Equities

- International Companies (BDR)

- Closed-End Funds

- Exchange Traded Fund (ETF)

Fixed Income- Federal Government

Bonds

- Debentures

- Commercial Papers

M t B k d

Equities- Stock Options

- Stock Index Futures, Options, and Options on Futures

- Futures on Stocks

- Forwards

Fixed Income (Options & Futures)- Interest rate

- Dollar denominated domestic yield curve

- Interest rate x price index

(PPI/CPI) spread- Real-Estate Investment Trust (REIT)

Corporate Governance Levels- Novo Mercado

- Level 2

- Mortgage-Backed Securities

- Asset Backed Securities (FDIC)

- NEW: Corporate Governance Bonds

- Forwards

- Warrants

- POP (Protected and Participative Investment)

Structured Products

- (PPI/CPI) spread

- Price index (PPI/CPI)

- Sovereign debt bond (Global Bond, A Bond, US Treasury)

- CDS (SPOT Market)

Level 2

- Level 1

- BOVESPA MAIS (SMEs)

Indexes (Benchmarks)- IBOVESPA, IBrX100, IBrX50, IVB

Currencies- US Dollar

Commodities- Gold

- Spread Strategies

- Volatility Trading (Stock Index, Interest Rate, Exchange Rate)

- Forward Rate Agreements

OTC

Currencies- US Dollar

- Euro

Commodities (Options & Futures)

X-2

- Sectorial: IEE (Energy), ITEL (Telecom), INDX (Industrial)

- Corporate Governance: IGX, ITAG

- Corporate Sustainability Index

Gold OTC

- SWAPs (Interest Rate, Exchange Rate, Price Index, Stock Index, Gold)

- Flexible Options (Stock Index, Exchange Rate, Interest Rate)

- Metals

- Arabica Coffee - Conillon Coffee

- Sugar - Ethanol

- Cotton - Corn

- Soybean - Live cattle

- Feeder cattle

- Listing - Securities Lending

- Depository and Custody - Settlement Bank

Other Products and Services

26

- Market Data - Indices Licensing

- Software Licensing

Business ModelTrading flow

BM&FBOVESPA SYSTEMS

el

1. Order

3. $1. $

1. Order

SellerBuyer BrokerageHouse

BrokerageHouse

Trading System

Dic

ial

ow

ner

leve HouseHouse

an

k)

3. $

Dep

osito

ry a

nd

rn

t at

the b

en

ef

Clearinghouseand Depository

(via

Cen

tral

Ba (v

ia C

en

tral B

a2s

risk m

an

ag

em

eri

sk m

an

ag

em

e

2.

$ a

nk)

SettlementAgent

SettlementAgent

2. S

tock

s / C

on

to

cks

/ C

on

tract

s nt a

t the b

en

ef

Dep

osi

tory

an

d r

tracts

3.

Sto

icial o

wn

er le

ve

27

D

Buyer Seller

el

Risk Management At the beneficial owner level

• Four Clearinghouses: derivatives, stocks and corporate bonds, FX spot and government bonds

• All of our Clearinghouses acts as CCP and manage the risk at beneficial owner level

• Mark to market (margin variation calls) done on intraday basis (each 15 minutes for derivatives market and ongoing for equity market)

Th b k h ( l i t) i ibl f it i th i li t ’ i k d • The brokerage house (clearing agent) is responsible for monitoring their clients’ risk and “know your customer policies”

• During the day any Clearinghouse can call additional collateral and the clearing agent is responsible for depositingresponsible for depositing

Clearinghouse Clearing Deposited(BRL billions)

Required(BRL billions)

Derivatives 71,4 34,1

ClearingAgent

ClearingAgent

, ,Cash Equities 26,7 16,6FX 3,7 0,8Fixed Income 1,0 0,0Total in BRL 102,7 51,5T t l i USD 49 1 24 6

Investor Investor Investor Investor

RiskManagement

Total in USD 49,1 24,6* On May 15, 2009

28

• There is no cross margining among the Clearinghouses

• Clearinghouses integration process: project kick off in 2009

Securities Lending (BTC)

• Specific regulation for securities lending activity

• Must be carried in a Clearinghouse (CCP)

• Trading systems offers registration

• Lending is a investors’ decision and it’s done through a brokerage house

• Settlement agents are responsible by their clients settlement and collateral

• Full disclosure of the open interest positions by company on daily basis

• Corporate actions adjustments

• Risk management at the beneficial owner level with collateral requirement and daily k t k tmark to market

• Position Limit

Investor: the totality of positions cannot exceed 3% of the free floating of the • Investor: the totality of positions cannot exceed 3% of the free floating of the company

• Broker: the totality of positions cannot exceed 6.5% of the free floating of the company

29

company

• Market: the totality of positions cannot exceed 20% of the free floating of the company

New IT DevelopmentsSchedule

BOVESPA SEGMENT

• May

• Starting in May we will have completed the implementation of the new version of thesoftware on which the MegaBolsa electronic trading system runs, as developed by NYSEEuronext. The new version (V900) replaces the V837 version implemented in June 2008.It is estimated that the average internal processing time, known as RTT (round timetrip) will decrease to 170 milliseconds from the current 290 millisecondstrip), will decrease to 170 milliseconds, from the current 290 milliseconds.Subsequently, with the implementation of the new low latency multi-levelcommunication interface (the new Multi Gateway), scheduled for July 2009, the RTT willdrop to 15 milliseconds and it is estimated that it will fall to 8 milliseconds untilDecember 2009December 2009

• Reduction in fees charged for orders entered in the MegaBolsa trading system, and notmatched, which drove growth in algorithmic trading

• July• July

• Authorization to DMA via provider implementation (DMA model 2) in the MegaBolsatrading system (to be approved by Brazilian Securities Exchange Commission - CVM)

August• August

• Completion of the project to increase the capacity of the equities clearinghouse(formerly, CBLC) to 1.5 million daily trades

ff i f l i i ( i i h l )

30

• Offering of co-location services (connectivity to the MegaBolsa system)

• Thomson Reuters connected to the Exchange’s MegaBolsa system to provide customerswith an international order routing system

New IT DevelopmentsSchedule

BM&F SEGMENT

• May

• Bloomberg Tradebook connected to the Exchange’s Global Trading System (GTS) to provide customers an international order routing system

• June

• GL Trade (GL Net) connected to the Exchange’s GTS to provide customers an international order routing system

• Offering of co-location services (connectivity to the GTS System)• Offering of co-location services (connectivity to the GTS System)

• Shutdown of the trading floor

BOTH BM&F AND BOVESPA SEGMENTS

• November

• Implementation of the integrated external communication interface for both MegaBolsa and the GTS systems, which will permit market data transmission from either system via a single channel.

31

CME Globex Order Routing Agreement

USA BRAZIL

Buy Order for S&P 500 Futures Sell Order for ID1 FuturesBuy Order for S&P 500 Futures Sell Order for ID1 Futures

CME GROUP GLOBEX

BM&FBOVESPA GTS

GLOBEX communication

network

GLOBEX

NETWORK

GTS

NETWORK

MATCHINGMATCHING

Sell Order for S&P 500 Futures Buy Order for  ID1 Futures

SETTLED IN USD BY CME´SCLEARINGHOUSE

SETTLED IN BRL BY BM&FBOVESPA´S DERIVATIVES CLEARINGHOUSE

32

CME Globex Order Routing Agreement

USA BRAZIL

Buy Order for an ID1 futuresBuy Order for an ID1 futures contracts

CME GROUP GLOBEX

BM&FBOVESPA GTS

GLOBEX

NETWORK

High speed and high capacity 

GTS

NETWORK

Sell order for an ID1 futures contracts 

MATCHING

p yinternational link

SETTLED IN BRL BY BM&FBOVESPA´S DERIVATIVES CLEARINGHOUSE, WHICH CAN BE FACILITATED BY BM&F BANK 

33

CME Globex Order Routing Agreement

USA BRAZIL

Buy order for S&P 500 Futures

CME GROUP GLOBEX

BM&FBOVESPA GTS

Buy order for S&P 500 Futures

GLOBEX

NETWORK

High speed and high capacity 

GTS

NETWORK

Sell order for S&P 500 Futures

MATCHINGinternational high

SETTLED IN USD BY CME ´S CLEARINGHOUSE, WHICH CAN BE FACILITATED BY BM&F BANK

34

IT DevelopmentsMore suitability for Algotraders

ALGORITHMIC TRADING PROFILE AND OPPORTUNITIES

• Arbitrage (determinist and statistic) - high frequency

• Cash Market versus ETF (Exchange Traded Fund)

• Cash Market versus Futures on Stock Index

D ti Sh ADR• Domestic Shares versus ADRs

• Futures versus Options

• Different s expirations of the same future contractp

• Trading of interest rate slope curve

• Trading with correlated instruments (soya bean BVMF x soya bean CME, coffee BVMF x coffee ICE etc)BVMF x coffee ICE etc)

• Mini contracts versus Standards contracts

• Order book’s depthp

DETERMINANT FACTORS

• Liquidity e volatility

35

• Electronic Access and low risk of execution

• Prices charged by the Exchange

DMA Development

DMA – BM&F SEGMENT

Number of Brokers that offer - DMA

25

30

15

20

25

5

10

15

0

5

g‐08

p‐08

p‐08

t‐08

t‐08

v‐08

v‐08

c‐08

c‐08

n‐09

n‐09

b‐09

b‐09

r‐09

r‐09

r‐09

r‐09

y‐09

y‐09

36

Aug Sep

Sep

Oct

Oct

Nov

Nov Dec

Dec Jan

Jan

Feb

Feb

Mar

Mar

Apr

Apr

May

May

DMA Development

Trading via DMA in BM&F Segment –Number of Contracts Traded

400 000

200,000

300,000

400,000

0

100,000

00,000

Trading via DMA in BM&F Segment – Number of Trades

30,000

40,000

10,000

20,000

37

0

Aug‐08

Sep‐08

Oct‐08

Oct‐08

Nov‐08

Dec‐08

Jan‐09

Jan‐09

Feb‐09

Mar‐09

Apr‐09

Apr‐09

May‐09

BM&F Bovespa Investor Relationsp

Web page: www.bmfbovespa.com.br/ri

Phone numbers: 55 11 3119 2007/ 3728 / 3729 / 3734

E-mail: ri@bmfbovespa.com.br

38