July 2010

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&F Bovespa 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&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-competitive 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 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&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 2003, as amended.

Business Model: A Source of Competitive Strength

Fully Integrated Business Model

Services for Issuers and Commodities trading
Listing (stocks, bonds, funds, asset-backed securities, among others)

Trading, Clearing and Depository Activities

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

Other Services
Custody (services provided for funds, and other market participants)

Commodities Certification

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

Market Data

Indices Licensing
Central Depository (stocks and corporate bonds)

Software Licensing (used by brokerage houses and other market participants) OTC Derivatives Registration and Collateral Management
4

Securities Lending (stocks and corporate bonds)

Listed Exchanges Business Model

Diversified and Integrated Exchanges Integrated Derivatives Exchanges Diversified but Not Integrated Exchanges*

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

Business Model enhances Margins and Market Cap

Market Capitalization (US$ billions) and 2009 EBITDA Margin (%)
80.2% 71.3% 64.9% 51.9% 43.1% 62.7% 60.8% 48.7% 74.3% 66.5%
56.7%
Date: 07/30/2010

80,

70,

60,

44.5%

50,

40,

Majority of Integrated Exchanges above 60% EBITDA Margin

30,

18.3

17.7

15.1

13.7 7.8 7.6

Nyse Euronext

20,

6.0
SGX

10,

4.5
ASX

4.1
Nasdaq

2.8
LSE

2.2
BME

2.1
TMX

0,0

CME

HKEx

BVMF

Deutsche Boerse

ICE

Diversified and integrated

Derivatives

Diversified but not integrated

EBITDA Margin 2009

Excellence in IT Solutions and competition Business Model, regulation and Post-Trading Services
Regulation prohibits internalization of orders, dark pools and ATS/MTFs, stocks trading in both exchange and OTC simultaneously
Brokers & Investors

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

Post-Trading

Naked short selling is not possible

Excellence in IT Solutions and competition Business Model, regulation and Post-Trading Services
CHANGE IN REGULATION: POTENTIAL IMPACTS Internalization of orders
Brokers & Investors

Brokers and other market participants should adapt their structure (the US prime brokers model does not exist in Brazil) Investors will face the broker risk Regulators: potential increase in systemic risk

Trading

Adoption of the best execution practice in various venues Adoption would be difficult due to the size and liquidity concentration (potential inefficiency in the price discovery) Brazilian equity market size is ~1% of the US market

Post-Trading

Regulatory debate favors OTC transactions being centrally cleared

Excellence in IT Solutions and competition Business Model, regulation and Post-Trading Services
CHANGE IN TRADING REGULATION: POTENTIAL IMPACTS Allowing simultaneous Exchange and OTC trading
Brokers & Investors

Potential inefficiency in the price discovery, risk of price manipulation and split of liquidity Are there incentives for this change? No cost reduction in the Sell side: investors pay the exchange fee (no incentive for MTF venues) Regulator: potential increase in market risk (inefficiency in price discovering and potential market manipulation) Global competitors: the Brazilian market structure would be a limitation and, besides, they would need to develop or hire posttrading services A NEW CLEARING? Buy side: higher costs (no cross margining or collaterals)

Trading

Post-Trading

Sell side: increase in OPEX and CAPEX due to new back-office IT solutions necessities Regulator: the BACEN considers the four clearinghouses operated by BM&FBOVESPA as systemically important (BM&FBOVESPA plays a key role in the Brazilian payment system)
9

Stock Market Trading Rules: efficient price discovery

General characteristics The trading rules are applied to all exchange listed stocks (a stock cannot be traded simultaneously in both Exchange and OTC markets) Main trading rules (auctions) established by CVM Instruction 168 There are maximum fluctuation limits for stock prices (automatically frozen by the trading system): For the most liquid stocks 3% oscillation is enough to trigger an auction procedure For the less liquid stocks the limit for oscillation is 10% An auction can take from 5 minutes to 1 hour Also, there are limits regarding the size of the trade (automatically frozen by the trading system):

The auction can take from 5 minutes (quantity above 5 times the average of the last 30 trading sections) to 48 hours advanced announcement (quantity higher than 6% of common shares or 20% of preferred shares)
Also, there are other intermediary auction rules Pre-trade limit analysis For DMA access, before the order get in the matching engine, there is a tool (MegaLine / GTSLine) that analyze if the order is under the limits established by the broker
10

Brazilians Stock Trading Breakdown

Novo Mercado Launching
100% 90% 80% 70% 60%
50%

End of CPMF (Financial Transaction Tax)

Sarbanes-Oxley Act (SOX)

Jul10

31.9% 46.5% 14.6%

40% 30% 20% 10% 0%

Feb-10 Apr-10

25.1% 53.5%
28.4%

1998

1999

2003

2004

2009

1996

1997

2000

2001

2002

2005

2006

2007

2008

Jun-10

Mar-10

Jan-10

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 08/12/2010

2001 14 14 -

Public Offerings in Number of Companies 2002 2003 2004 2005 2006 2007 2008 1 7 9 26 64 4 5 8 8 10 16 12 8 6 8 15 19 42 76 12 2 1 1 -

May-10

2009 2010* Total 6 8 125 18 7 106 24 15 231 1 5

11

Jul-10

All in trading cost in Bovespa Segment

USD 0.015 US$ 28 - Stock Price (Avg. ADR price) USD 0.050 US$ 94 - Stock Price (Most expensive share price in Brazil) USD 0.008 US$ 14 - Stock Price (Avg. share price in Brazil)

23.7% 11.5%

27.6% 10.9%

24.4% 11.3% 35.9%

1.3 Bp 0.6 Bp Exchange Cost 3.8 Bps

36.3%

34.4%

1.9 Bp

28.6%

27.2%
Exchange Trading fee

28.3%
Exchange Clearing fee

1.5 Bp

Broker trading Fee

Exchange Depository fee

- 3 months holding period - Brazilian Investment fund trade - 1.5 Bp Broker Fee - Securities lending not considered

12

New Pricing Policy

Released in June/10 Bovespa Segment

Discounts from 10% to 50% only for trading fee (cash and options), according to the volume
Only for day traders / HFTs

BM&F Segment
Discounts up to 75%, according to the volume Termination of the 70% flat discount for HFTs New policy for day traders / HFTs Both Segments discounts will need to be prior approved by a committee Implementation: November, 2010

13

Regulation and Taxation: IOF

IOF October 20th: 2% charge on foreign capital inflow November 19th: 1.5% charge on issuance of new DRs Consequences Equity trading declined by 5 to 7%, mainly due to the ADRs arbitrage Reduction in non resident participation in Cash Market from 33-37% to 27-30% with increased use of TRS (Swaps) Increase in IOF unlikely Brazilian capital market has become a very important source of funding to companies like Petrobras, Banco do Brasil, Eletrobrs, government owned. Massive investments will be needed in coming years to support growth World Cup / Olympics / Pre Salt / Infrastructure Government is not hostile to foreigners

14

NEW DEVELOPMENTS

15

International Partnerships Leverage Connectivity and State of the Art Technology

Globally preferred strategic partners

Development of new multi-class trading platform Reciprocal participation in CME and BVMF Board of Directors Increase of BVMF stake in CME from 1.8% to 5% (equity accounting will be adopted) Strategic Committee

16

ITExcellence in IT Solutions and Post-Trading Services Developments

Market Access
Co-location Capacity: phase II implemented in Jul10

Co-location in Bovespa Segment: to be implemented in Sep10

ISVs: Trading Technology (TT) will provide screens for BM&F segment in 1Q11 Globex Technology: derivatives trading system: 1Q11 Capacity: phased in until Oct/10 BOVESPA Seg.: from 1.5 million to 3 million trades/day (Oct/10) BM&F Seg.: from 200K to 300K trades / day (Aug 10) from 300K to 400K trades / day (Oct/10)

Performance: improving performance in both systems (one digit latency)

Post Trading

Sungard/GMI Project (back office for FCMs): to be implemented in 3Q10 New Sinacor+ (back office for brokers): new version will be fully implemented by the end of 2010 Clearing Integration: to be implemented in the end of 2011
17

Post-Trading Services - Integration and Opportunities

Cross margining for Equities, Derivatives, Spot FX and Fixed Income Single Settlement window Greater capital efficiency

Business and Service Center (Single Gateway)

Central Counterparty

Clearing Facility

Central Depository

18

New Products Pipeline Products

Market Makers (MMs) for Options: Players: locals (only FI) and non-residents(all) - Implementation: Option on IBOVESPA and other securities - by the end of 2010.

Non-Sponsored BDR Level 1 Product: issued by a Brazilian depository institution Authorized investors: Financial institutions, mutual funds, Portfolio managers and Consultants for securities authorized by the CVM, in relation to their own funds Implementation: 3Q - 10 big stocks listed in the US (DB) + 10 granted to Citibank

ETFs and Indexes

New ETFs to be launched - New Indexes: Financial Index 7 ETFs trading around BRL30 million per day Launched of a Competitive Model to select new ETFs issuers

19

Order Book in Foreign Currencies (Brazil Easy Investing)

BM&FBOVESPA and Chi-X Global Term Sheet for joint development of software Trading system of stocks listed in Brazil with simultaneous FX execution allows non residents to match stocks in US$ and other currencies Legal requirements to invest in Brazil keep unchanged (2689 Account) Facilitates the foreign investor access to Brazilian market, especially retail

20

Order Book in Foreign Currencies (Brazil Easy Investing)

Other Countries
1 BVMF3 Price at US$8.00
BROKERAGE HOUSE INVESTOR 2689

NET

INVESTOR 2689 INVESTOR 2689

Brazil

Compra de BVMF3 US$ 8.00

3
US$ FX Sell at R$ 1.80 Financial Institution that provides FX transaction
BROKER BVMF BROKER BVMF BROKER BVMF

Chi-FX Brazil 2
Buy BVMF3 at US$ 8.00 ,
3
Buy BVMF3 at R$ 14.4
Trading System

INVESTOR 2689

BROKER BVMF

3
Sell BVMF3 at R$ 14.4
NET

BVMF

REVIEWED OPEX AND CAPEX BUDGETS

Opex (5.4% reduction)

In R$ millions

30 520

Actual Reviewed Budget

447
2009

2010e

Budget Reduction

Capex (10% reduction)

30 272 96
2009 2010e

22

Improving the IT capacity and performance

Round Trip Time, in milliseconds
Equity Market Derivatives Market Network Carrier Throughput in thousands of trades Equity Market Average Capacity Daily Average Market peaks Derivatives Market Average Capacity Daily Average Market peaks Number of employees* 390 153 343 55 23 42 1,828** 770 245 414 200 29 49 1,487 1,500 332 591 200 39 76 1,306 3,000e 416*** 634 400e 68*** 152 1,471

2007
450 70

2008
300 25

2009
10 10

2010e
One digit One digit

RCCF`s Sole Provider

8 Networks (RCB)

*Includes outsourced services ** Related to May/2008 *** Updated until 07/30/2010

23

OPERATIONAL PERFORMANCE

24

Bovespa Segment: Operational Highlights

Average Daily Traded Value - ADTV (BRL Billions)
4.9 1.6
2.4

5.5

6.5 5.3

6.8

6.6

6.5

6.9

7.3 5.8 5.4

1.2
2004

2005

2006

2007

2008

2009

YTD*

Jan-10

Feb-10

Mar-10

Apr-10

May-10

Jun-10

Jul-10

Daily Average Number of Trades (Thousands)

489

416 332
245 153 54
2004

424

409

393

405

399

395

62
2005

87

2006

2007

2008

2009

YTD*

Jan-10

Feb-10

Mar-10

Apr-10

May-10

Jun-10

Jul-10

Number of Custody Accounts (Thousands)

508

Turnover Velocity** (12 months average)

580

540

551

559

548

543

538

576

581

56.4% 36.8% 30.8% 29.4% 37.6% 38.7% 42.3%

63.2%

66.6%

66.6%

1Q08

2Q08

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

2Q10

2001

2002

2003

2004

2005

2006

2007

2008

2009

*Updated until: July 30th, 2010

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

25

BOVESPA Segment: Capital Raised Activity

Public Offerings in 2009/2010 24 public offerings in 2009 (6 IPOs and 18 Follow-Ons), raised more than BRL 46.0 bi 15 public offerings in 2010 (8 IPOs and 7 Follow-Ons), raised BRL 23.5 bi* Pipeline Also, there are 7 additional offerings in the pipeline IPOs (6): WTORRE Empreendimentos Imobilirios, Sonae Sierra Brasil S/A, Norskan Offshore S.A, Multiner, Autometal and Brasil Insurance Follow-Ons (1): Petrobras
Public Offerings (BRL billions)

IPO

Follow-On
14.5

22.2
15.1 4.3 4.5
2004

55.6

26.8
23.8 7.5
2007 2008 2009

16.1 7.4
2010*
Preliminary Data Updated until August 2nd

8.5 5.4
2005

15.4
2006

26

BM&F Segment: Operational Highlights

Average Daily Traded Volume - ADTV (thousands of contracts)
3,117 2,544 1,740 1,167 805 852 1,573 3,054 2,063 2,863

180
1,521

90

1,906

2,184

75 176 96 2,479 603 611 220

170

189

75 477 96
2,121

167

579

168

181

106

106

112 162

124 109

266 187 86 168 74 110 711 501 422

2004 2005 2006

68

473 988
2007

88 150 80 447 535

789

525 1.694 1,135

78 642 2,270 1,255

2,171

670

159

530 1,483 1,278

843
2009 YTD*

2008

Jan-10

Feb-10

Mar-10

Apr-10

May-10

Jun-10

Jul-10

BRL Int. Rate (Thousands)

FX (Thousands)

Index (Thousands)

Others (Thousands)

Rate per Contract - RPC (BRL)

2004 Interest rates in BRL FX rates Stock Indices Interest rates in USD Commodities Mini contracts OTC Total RPC 0,887 4,002 1,561 1,999 7,159 1,199 1,620 2005 0,962 2,858 1,688 1,385 5,693 0,038 1,703 1,467 2006 0,906 2,244 1,419 1,094 4,749 0,034 1,571 1,247 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 YTD* 0,876 1,894 1,503 1,173 1,992 0,130 1,639 1,127 J-10 0,971 1,968 1,466 1,104 1,711 0,133 1,588 1,254 F-10 0,977 2,005 1,716 1,319 2,029 0,139 1,408 1,308 M-10 0,722 1,837 1,372 1,239 1,934 0,129 1,626 0,961 A-10 0,780 1,872 1,616 1,203 2,281 0,136 1,790 1,031 M-10 0,961 1,752 1,313 1,145 1,890 0,122 1,646 1,171 J-10 1,044 1,908 1,643 1,137 2,216 0,133 1,895 1,274 J-10 0,893 1,983 1,372 1,086 2,021 0,124 1,684 1,084

*Updated until: July 30th, 2010 27

BM&F Segment Open Interest

45,0

Derivatives Open Interest (in millions of contracts)

Interest Rates in BRL Total Open Interest

40,0

35,0

30,0

25,0

20,0

15,0

10,0

5,0

0,0 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10

28

BM&F Segment: DMA and CME Order Routing Evolution

DMA ADTV in thousands of contracts
1100

CME-Globex ADTV in thousands of contracts

20%
16%
280 250 220 190 160 130 100 70 40 10 (20)

17.6% 13.9% 14.4% 21 176 11.3% 13 3 92 156 51 71 129 327 197 216 138 223 148 380

900
700 500

300 5.5% 100

-100

7.5% 20 30 4 157 195

16.0% 20.1% 84 164 16.9% 13.5% 279 204 151 162 254 161 214 189 48 70 451 416 276 367

4.3%
3.2% 2.9%

12%
8%

4.1%
59

2.6% 49
43 37 39

4%
0%

0.1% 6 5
4

2.5% 45 0.9% 2 39
20
16 33 42

39 58

35 29 83

1.7%
126
15 12 43

0.8%
11 9 27

81

5,5% 5,0% 4,5% 4,0% 3,5% 3,0% 2,5% 2,0% 1,5% 1,0% 0,5% 0,0%

Traditional DMA

CME Globex

DMA Provider

CoLocation

% of DMA in overall ADTV

FX

Equities

Mini contracts

% in Overall Volume

High Frequency Traders

ADTV in thousand of contracts

500 450 400 350 300 250 200 150 100 50 -

70%

Participation per type of contract

22 active participants in Jul10
59.4%

8.9%

6.0% 3.8% 77 41 69
93

120 4.2% 72 47
118 62

6.3% 84 42
118

4.0% 85 40 92

4.8% 2.8% 1.0% 22 0.3% 7 18 5 41 20 0 4

FX

50 155

53 44 50

226

9,5% 8,5% 7,5% 6,5% 5,5% 4,5% 3,5% 2,5% 1,5% 0,5% -0,5%

60%

50%
40% 30% 20%

26.6%

10% 0%

10.5%

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

Apr-10 May-10 Jun-10 Jul-10

Equities

Mini contracts

% in Overall Volume

FX contracts

Index-based contracts

Mini contracts

* Updated until July 30, 2010

29

Drivers for BM&F and BOVESPA Segments: HFT

Colocation (Jul10)
33 half racks hired 45 units in the pipeline: 13 units for the Bovespa Segment, 32 units for both Segments.

180
160

Average Daily Traded Volume via Co-location (thousands of contracts)

Seven active investors

3.3% 3.2% 2.6% 6,5%

164

162

151

5,5%
4,5%

140
120 100

1.4%

80
60

84

3,5% 2,5% 1,5%

40
20 -

12

15

13

17

20

25

0,5% -0,5%

* Updated until July 30, 2010

30

APPENDIX

31

Equity Market Settlement Structure: Brazil compared with USA

BRAZIL
All the trades must be matched on an exchange environment

USA
Brokers can internalize orders

Broker

TRF

Dark Pools Direct Edge Nasdaq DTCC

Trading on the Exchange

BVMF

BATS NYSE

Clearing (CCP)

BVMF

BVMF

DTCC

Central Depository Broker Level

Beneficial Owner Level

32

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

Via DMA Co-location Remote access tracking and maintenance

Application of Co-location

33

US Exchanges and Trading Venues: Market share

US CONSOLIDATED EQUITIES VOLUME BREAKDOWN (JUN10)

1.4%
9.8% 11.0%

Nasdaq + BX NYSE + Arca

22.8%

TRF (Adjusted) Dark Pools

11.1% 28.8% 15.3%

BATS
EDGX + EDGA Other

Source: Rosenblatt Securities Inc. Trading Talk

34

BRAIN Brazil Investments & Business

Mission Reinforcing Brazils position as an international investment and business hub with regional focus and global connections, contributing to the sustainable economic and social development of Brazil and Latin America.

Foundation Members BRAiN seeks to articulate, with the public and private sectors, projects in various areas: Brazils image abroad

Strategic Objectives

Turn Brazil into the business hub for Latin America

Develop global projection and links

Business infrastructure
Institutional connections International trade Education and talents Develop local market strengthening Brazilian ecosystem competitiveness

Financial products, services and channels

Regulation, taxation, and bureaucracy
35

1Q10 EARNINGS

36

Highlights of 1Q10 x 1Q09

1Q10 EARNINGS
EPS (GAAP): BRL 0.14 in 1Q10 and Adjusted EPS: BRL 0.20 compared with BRL 0.12 in 1Q09 Adjusted Net Income (adjusted by non-cash items)*: 64.1% higher than 1Q09 EBITDA Margin: 72.9% in 1Q10 versus 55.8% in 1Q09 and 65.1% in 4Q09
227.0
1Q09

Net Income (BRL Millions)

403.2 282.6 245.7

1Q09 1Q10

Adjusted Operating Expenses*: increase by 12.1% vs 1Q09 and 13.1% lower than 4Q09
Guidance: both BRL550 million OPEX (adjusted) and BRL302 million CAPEX budgets will be revised downwards Interest on Capital: BRL227 MM (BRL90 MM previously paid and BRL137 MM, BRL 0.068 per share, to be paid), equivalent to 80% payout on GAAP net income HIGHLIGHTS BM&F segment all time high Trading Volume: 2.4 million contracts per day in 1Q10 and 3.1 million in Mar10 Colocation and High Frequency Traders (HFT): Colocation and HFT from BM&F Segment in Apr10 hit new record highs, ADTV of 84K and 244K (buy + sell), respectively New Pricing Policy for HFT: market hearing launched in Apr10 Products: Market Maker on Options, Non Sponsored BDR Level 1, Hydrous Ethanol Futures and Options and Foreign NDFs / Futures

1Q10

EBITDA (BRL Millions) / EBITDA Margin (%)

72.9% 55.8% 334.6

176.7
1Q09 1Q10

Operating Expenses (BRL Millions)

GAAP

Adjusted

* Adjusted net income in 1Q10 excludes stock options plan and impacts from deferred liabilities tax and in 1Q09, excludes stock options plan. Adjusted expenses in 1Q10 excludes depreciation and stock options plan costs and in 1Q09 excludes depreciation, stock options plan and severance costs

37

Summary of Financial Statements

In BRL (thousands)
Gross Operating Revenues Net operating revenues Operating expenses Operating income Income before Taxes Income Tax and Social Contribution Net Income Net margin EBITDA EBITDA margin Adjusted net income Adjusted Operating Expenses Adjusted EBITDA Adjusted EBITDA margin Adjusted earnings per share

1Q10
510,660 459,128 (136,632) 322,496 390,192 (107,843) 282,601 61.6% 334,626 72.9% 403,248 (115,502) 343,626 74.8% 0.200885

1Q09
351,918 316,548 (148,760) 167,788 235,647 (8,372) 226,980 71.7% 176,739 55.8% 245,739 (103,050) 195,498 61.8% 0.122869

% Change 1Q10/ 1Q09

45.1% 45.0% -8.2% 92.2% 65.6% 1,188.1% 24.5% -10.2 pp 89.3% 17.0 pp 64.1% 12.1% 75.8% 13.1 pp 63.5%

4Q09
473,890 424,759 (160,372) 264,387 338,491 (118,371) 220,174 51.8% 276,399 65.1% 315,313 (132,866) 291,893 68.7% 0.157282

% Change 1Q10 / 4Q09

7.8% 8.1% -14.8% 22.0% 15.3% -8.9% 28.4% 9.7 pp 21.1% 7.8 pp 27.9% -13.1% 17.7% 6.1 pp 27.7%

NET INCOME RECONCILIATION

In 1Q10, the net impact from the adjustments on the bottom line amounted to BRL 120.6 million, composed by 2 non-cash items: BRL 111.6 million added Recognition of deferred liabilities related to the goodwill amortization in 1Q10; BRL 9.0 million - Stock Options Plan; In 1Q09, the net income was adjusted by the Stock Option Plan in BRL 18.8 million
BRL Millions Adjusted Net Income Adjustments Deferred Tax Liabilities Stock Options Plan Corporate Net Income 1Q10 403.2 111.6 9.0 282.6 1Q09 Var. 1Q10/1Q09 245.7 64.1%

18.8 227.0

24.5%
38

Revenues Breakdown
Revenues Breakdown
In BRL (thousands)
Operating Revenues

1Q10
510,660 170,935 259,835 79,890 20,436 15,941 12,521 11,511 10,520 1,114 1,899 3,513 2,435

1Q09
351,918 127,170 158,196 66,552 16,084 11,521 9,475 10,621 6,127 1,406 1,971 3,976 5,371

% Change 1Q10/ 1Q09

45.1% 34.4% 64.2% 20.0% 27.1% 38.4% 32.1% 8.4% 71.7% -20.8% -3.7% -11.6% -54.7%

1Q10

16% 33%

Trading / Clearing Systems - BM&F Trading / Clearing Systems-Bovespa Other Operating Revenues Depository and custody

51%

Vendors Trading access (Brokers) Listing Securities Lending Bolsa Brasileira de Mercadorias Bank Others Dividends (CME)

Trading / Clearing Systems - BM&F

Trading / Clearing Systems-Bovespa Other Operational Revenues

1Q09

19% 36%

Operational performance by Segment

45%

1Q10 2,453.6 1.126 6,599.6 6.56

1Q09 1,471.7 1.345 3,908.1 6.64

BM&F ADTV - in millions of contracts BM&F RPC - in BRL BOVESPA ADTV - in BRL millions BOVESPA Margin - in bps

Change 1Q10/1Q09 66.7% -16.3% 68.9% -1.1%

39

Others Revenues Other Revenues: 1Q10x1Q09

Depository and Custody: +27.1%
Extra fee after April 2009

Vendors: +38.4%
Due to the new pricing policy (Apr09) and the growth of the average number of users (+16.6%)

Number of Accounts (Average) in thousands

555

581

Trading Access (Brokers): +32.1%

The market recovery lead brokers to migrate to more expensive bandwidth

1Q09

1Q10

Securities Lending: +71.7%

Securities Lending - BTC
25,0

Open Interest

20,0
15,0

53.9

58.6

10,0
5,0 -

9.8
1Q09

12.9

16.5

15.8

19.4

2Q09

3Q09

4Q09

1Q10
40

Open Interest (BRL billions)

Monthly Average Number of Trades (thousands)

Number of Trades

63.8

61.1

69.6

80,0 70,0 60,0 50,0 40,0 30,0 20,0 10,0 -

Expenses Expenses Breakdown

Expensess Breakdown
1Q10
28.5% 46.6%
3.9%

In BRL (millions)

1Q10

1Q09

Var. 1Q10 / 1Q09

-8.2% -25.4% -20.3% 35.5% 5.7% -5.1% 19.6% 132.5% -7.2% 3.4% 12.1% 12.4%

Operating Expenses Personnel

136,632 63,718 21,266 12,130 9,637 2,682 5,971 5,328 1,048 14,852 115,502 54,718

148,760 85,462 26,683 8,951 9,119 2,826 4,991 2,292 1,129 14,367 103,050 48,703

7.1%
15.6%

Data processing Deprec. and Amortization

Personnel
Third Party Services

Data processing
Marketing

Third Party Services Maintenance Communications

Others

1Q09
22.9% 1.5% 6.1%
17.9%

Marketing Board Compensation

57.4%

Other Adjusted Operating Expenses Adjusted Personnel Expenses

1 2

Exclusions: In 1Q10: SOP (BRL 9.0 million and depreciation; In 1009: SOP (BRL 18.8 million), depreciation and severance expenses (BRL 18 million) Exclusions: In 1Q10: SOP (BRL 9.0 million; In 1Q09: SOP (BRL 18.8 million) and severance expenses (BRL 18 million)

41

Expenses Breakdown Expenses Breakdown

Adjusted Operational Expenses* (BRL millions) Synergies associated with 2007 expenses** (BRL millions)

130

120

103

105

109

133

115

3Q08

4Q08

1Q09

2Q09

3Q09

4Q09

1Q10

* In 1Q10 excludes depreciation and stock options expenses and in 1Q09 excludes depreciation, stock options and severance expenses ** 2007 Operational expenses as adjusted for inflation and OPEX budget excludes depreciation and stock options

Adjusted Operational Expenses: 12.1% higher than 1Q09 Adjusted Personnel Expenses: 12.4% higher than 1Q09

IT: 20.3% reduction vs. 1Q09 due to projects that are being revised and costs reduction related to equipments maintenance
Marketing: 132.5% growth in comparison with 1Q09 (low base) showing the efforts in the financial education campaign Others: CAPEX write off (BRL 3.7 million) and provisions of litigation (BRL 1.9 million) Adjusted Operational Expenses*: BRL 115 million in 1Q10 Guidance: Both BRL550 million OPEX (adjusted) and BRL302 million in CAPEX budgets will be revised downwards
42

Financial Highlights
Cash and Cash Equivalents
In BRL billions

CAPEX
BRL26.4 million, (BRL23.6 million in IT and BRL2.8 million in other projects) 4Q09 - BRL 31.5 million 2009 BRL 95.6 million

Mar10: BRL 4 billion

1.2

Financial Income
BRL 67 million in 1Q10 and in 1Q09

Cash distributions
2.2 0.5

BRL227 million Interest on Capital in 1Q10, representing 80% of GAAP net income, as follow: BRL90 million already paid during the 1Q10; and
Own Cash

Collateral

Clearings safeguard structure

BRL137 million, equivalent to BRL 0.068 per share, to be paid on May 27th, based on the ownership structure prevailing as of May 12th, 2010

43

Balance Sheet
In BRL thousands

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

Mar'10
3,532,520 48,238 3,320,428 163,854 18,469,670 749,176 616,412 132,764 1,319,386

Dec'09

LIABILITIES AND SHAREHOLDERS' EQUITY

Mar'10
1,645,579 1,171,426 474,153 424,727 163 372,784 51,780 16,378

Dec'09
1,162,075 810,317 351,758 313,002 2,495 261,060 49,447 16,357

2,778,968 Current Liabilities 50,779 Collateral for transactions 2,599,784 Others 128,405 Non-current Liabilities 18,422,215 Financing 715,951 Deferred Inc. Tax and Social Contrib. 585,648 Others 130,303 Minority interest in subsidiaries 1,319,439 Shareholders' Equity

19,915,506 2,540,239

19,709,749 2,540,239

Property and equipment

278,277

268,895 Capital

Capital reserve Intangible assets TOTAL ASSETS 16,122,831

22,002,190

16,675,489 699,778

16,666,489 503,021
21,201,183

16,117,930 Others

21,201,183 TOTAL LIAB. AND SHAREHOLDERS' EQUITY 22,002,190

44

APPENDIX Operational data

45

Performance of BOVESPA Segment: Individuals Investors

On Line Tradings in Overall ADTV (%)

24,0%
20,0%

16,0%
12,0%

8,0% 4,0%
0,0%

17.5%

16.5%

18.3%

19.3%

21.2% 16.9%

17.9%

17.6%

18.7%

1Q09

2Q09

3Q09

4Q09

1Q10

Apr10

May10

Jun10

Jul10

4.500 4.000 3.500 3.000 2.500

Treasury Direct

250 200

ETFs - Average Daily Volume (BRL Millions)

27.1
22.0 23.5 21.7 21.5 20.3 11.4 5.3

33.1 29.1

26.6 25.6 18.3

16.9

22.2

25.3

26.7 24.5

150
100

2.000 1.500 1.000 500 0

8.8
50

Feb-09

Sep-09

Feb-10

Apr-10

Apr-09

Jun-09

Jun-10

Jul-09

Mar-09

Mar-10

Aug-09

Dec-09

Oct-09

Jan-09

Nov-09

Jan-10

Assets Value (BRL millions)

Investors (thousands)

May-10

May-09

Jul-10

46

Performance of BOVESPA Segment: Individuals Investors

Investors Account
Jul10 628 k

700

600
500 400 300 200 100 0

Jan-07

Jan-08

Jan-09

Jan-05

Jan-06

Jan-10

Jul-05

Jul-06

Jul-09

Oct-05

Oct-08

Apr-05

Apr-06

Apr-07

Apr-08

Apr-09

Oct-09

Oct-06

Oct-07

Market Capitalization (BRL trillions)

1.5

1.8

2.1

2.3

2.4

2.3

2.1

2.1

1Q09

2Q09

3Q09

4Q09

1Q10

Apr10 May10 Jun10

Jul10

Apr-10

2.3

Jul-10

Jul-07

Jul-08

47

Bovespa Segment: Foreign investment flow

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

9.1 7.3 6.0 2.9 0.9 -0.4-0.6 -1.2 0.5 -0.6 -1.8 -2.8 -4.7 -7.3 1.4 5.3 5.7 6.1 4.2 2.5 2.1 1.4 0.7 -0.1 -1.5 1.5 5.5 5.2 5.8

-1.0

-2.1

*Includes regular trades and public offering; updated until July 30th, 2010.

48

Operational Highlights: Investors Participation in Total Volume

BM&F Segment (Investors Participation in Total Volume)
7% 12% 24%

2%

7%

2%

9%

2%

8% 19%

3%

8%

3%

5% 22% 27%

2%

5%

2% 4% 2% 4% 1% 3% 1% 3% 3% 2% 4% 22% 24% 26% 26%

25%

15%

17% 23%

20% 24%

23%
26%

22%

25%

23%

30%

25%

29%

32%

56%

51%

49%

48%

45%

43%

43%

42%

44%

43%

40%

41%

2005

2006

2007

2008

2009 Individuals

Jan-10

Feb-10

Mar-10

Apr-10

May-10

Jun-10

Jul-10

Central Bank

Companies

Foreign Investors

Institutional Investors

Financial Institutions

Bovespa Segment (Investors Participation in Total Value)

12% 2%

10% 36% 27%

2%

10% 35% 30%

2%

8%

3%

7% 34% 26%

2%

9%

2%

9%

2%

9% 27% 30%

2%

9% 28%
35%

2%

7% 30% 34%

2% 2% 8% 28% 35%

2% 7%
28% 36%

33% 27%

35% 27%

28%
29%

28% 29%

25%
2005

25%

23%

27%

31%

31%
Jan-10 Foreign Investors

32%

31%

25%

27%

26%
Jun-10 Others

28%
Jul-10

2006 2007 2008 2009 Individuals Institutional Investors

Feb-10 Mar-10 Apr-10 May-10 Financial Insitutions Companies

49

Institutional investors will broaden their participation in capital markets: Pension Funds
Brazilian Pension Funds Investments Breakdown Dec 2009
7.5% 33.3% 8.1% 21.1%
444.8
450 451.1 458.2

Brazilian Pension Funds: asset evolution (BRL billions) 515.4

479.6 479.4 469.4

484.9

490.6

498.8 497.6

506.4

59.3%

70.8%

Total
Fixed Income

Total without Previ

Equity Others

Brazilian Pension Funds: equity investments portfolio*

BRL 163.8 billion

Brazilian Pension Funds: projected asset growth (% GDP) 40%

13%

14%

14% 15%

16%

17%

15%

17%

18%

BRL 46.7 billion

27.7%

33.3%

2002

2009

In September, 2009, the limit the pension funds are allowed to invest in stocks increased from 50% to 70% of their total portfolio Source: ABRAPP 50

Institutional investors will broaden their participation in capital markets : Investments Funds
Investments Funds: Portfolio Breakdown (in BRL billions )
1,458.5 1,279.5 1,150.0 12% 15% 18%

1,497,0 15% 18%

23%

724.8 8% 10% 28%

768.8 8%
11% 29% 52%

914.8 8%
12% 17% 63%

1,119.9 10% 13%

23%

15%
14% 24%

16% 24% 23%

55% 2003

54%

47%

48%

44%

44%

2004 Fixed Income

2005

2006 Multimarkets

2007

2008 Others*

2009 Equities

May/10

* Others include: Asset backed securities, real estate, FX, off-shore and retirement funds

Investments Funds: Multimarket and Equities Funds Evolution (in BRL billions)
308 171 178 320 180 332 190
338

338 195
205

346 214

339 213

340 211

340 215

345 210

351 204

281 165

286 174

285

Apr-09 May-09 Jun-09

Jul-09

Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Multimarkets Funds* Equities Funds

Feb-10 Mar-10 Apr-10 May-10

* Brazilian Hedge Funds

Source: Anbima

51

Capital Markets in Brazil: A Story of Growth

52

Modest exposure of Investment Funds

Number of investor accounts in investment funds

53% 39%

% in Equities

USA 270 million (~60% of population)

14%

USA (Apr/10)

World(Dec/09)

Brazil (May/10)

BRAZIL 10.2 million (5% of population)

Source: ICI- Investment Companies Institute and Anbima

53

Brazilian Capital Market Indicators are still Incipient when Compared to World Benchmarks

Turnover Velocity (2009)

1,027%

High potential for growth

446% 243% 229% 171% 162% 161% 146% 129% 107% 98% 96% 88% 84% 67% 67%
Tokyo LSE AUX TSX NSEI HKEx SGX BVMF

Nasdaq Shenzhen

KEx

Shanghai

DB

Borsa Italiana

NYSE

BME

Source: WFE

Brazil places 28th in the WFE ranking, with 386 listed companies in Dec/09
54

Modest Development in Fixed-Income and Agricultural Commodity Derivatives

Real Estate Credit to GDP Ratio

62%

Agricultural commodity derivatives to total exchange industry*:

44% 15% 11% 3%

USA Spain Chile Mexico

World 5.3% Brazil 0.7%

* Jan-Sept/2009
Source: FIA

Brazil
55

Source: CDES Social and Economic Development Board and World Bank