1Q11 EARNINGS

May 13th, 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 facts, 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 the like 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 on 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 and Commission (CVM) Instruction 400 of 2003, as amended,

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

460.5
2.5%

472.2

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

1Q10

1Q11

Adjusted EBITDA (BRL millions) / Adjusted EBITDA Margin (%) 74.9% 70.4%
-3.6%

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
Strategy Execution

345.0

332.6

1Q10

1Q11

Increase in High-Frequency Trading in equities markets (6.1%

of overall value traded in 1Q11)

Adjusted Net Income (BRL millions)

ETF activity increasing with average daily trading volume for

ETFs up 59% from 1Q10, reaching R$39.5 million

EPS: 0.202

EPS: 0.196
-5.2%

405.1

Strategic priorities: cross-listing of derivatives with CME

Group, market maker for options, ETFs and BDR programs
1Q10

384.2

1Q11

Revenues 1Q11 vs. 1Q10

Revenues in BM&F segment grew 10% year-over-year

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 Other Bolsa Brasileira de Mercadorias Operating performance BOVESPA ADTV - in BRL millions Margin - in bps ADTV - in thousands RPC - in BRL

1Q11 525,477 251,716 186,662 87,099 22,105 16,224 15,405 12,470 11,276 4,711 2,489 2,419 1Q11 6,735.4 6.017 2,865.8 1.040

1Q10 512,049 256,494 170,213 85,342 20,890 19,628 10,520 12,446 11,511 3,288 5,945 1,114

% Change 1Q11 x 1Q10 2.6% -1.9% 9.7% 2.1% 5.8% -17.3% 46.4% 0.2% -2.0% 43.3% -58.1% 117.1%

17% 48%
35%

Bovespa Trd. / Sttmnt BM&F Trd. / Sttmnt Other operational revenues

% Change 1Q10 1Q11 x 1Q10 6,599.6 2.1% 6.361 -0.34bp 2,453.6 1.126 16.8% -7.6%

BM&F

BOVESPA and BM&F Segments Revenues Performance

Record volumes continuing at BM&F, driven by Interest Rate contracts

BOVESPA Segment (1Q11 vs. 1Q10)

Average Daily Traded Value (ADTV)
2.1%

ADTV in 1Q11 of BRL6.7 billion, up from BRL6.6 billion in 1Q10. Increase in the average market cap (8.7% year-over-year) partially offset
by the reduction in markets turnover velocity (to 62.1% from 64.7%) Trading and Settlement Margin

-0.34bps

Margins fell year-over-year to 6.017 bps from 6.361 bps Due mainly to higher proportion of investors that are charged lower
fees (growth of local institutional investors trading firms) and high frequency

BM&F Segment (1Q11 vs. 1Q10)

Average Daily Traded Volume (ADTV)
16.8%

ADTV in 1Q11 of 2.9 million contracts, up from 2.5 million in 1Q10 All time high volumes in 1Q11 32.5% growth in the ADTV of Interest Rates in BRL contracts RPC fell to R$1.040 from R$1.126 year-over-year. Change in the mix of contracts traded: i) growth in the participation of
interest rate in BRL contracts (lower prices than the average); and ii) lower participation of FX contracts (higher prices than the average)
5

Revenue per Contract (RPC)

-7.6%

Consistent Growth in Depository/Custody and Securities Lending Services

(in BRL thousands)

Depository and custody

1Q11

22,105

8.2% increase in average number of custody accounts, to 629.0 thousand from 581.3 thousand

5.8%

1Q10

20,890

9.4% increase in the portfolio value under custody (excluding foreign investors and ADR positions)

1Q11
-17.3%
Vendors

16,224

New Pricing Policy implemented in Aug. 2010 reduced market data access fees for Home Brokers, in line with the goal of attracting more retail investors
BRL appreciation of 7.4% affected market data fees charged in USD

1Q10

19,628

Securities lending

1Q11

15,405

Higher level of securities lending activity

46.4%

1Q10

10,520

35.7% increase in the average value of open positions year-over-year

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

Retail volumes should go back to normal levels of trading

once market performance improves Companys growth strategy to boost volumes

Foreign investor outflows in the recent quarter Low level of retail investor activity

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
7

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

Low BRL-USD volatility reduced FX contract volumes

in recent months (some negative impact on HFTs)

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

Partially compensated by the growth in interest

rates in USD

ADTV (thousands of contracts)

2,824 365 391 3,106 306
437 3,482 408

2,505 280 1,167 191 266 711

2,656 280 438

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

High Frequency Trading (HFT)

HFT are playing an important role at both BM&F and BOVESPA segments
HFT BM&F Segment (ADTV in thousands of contracts)**
6.0% 4.8% 4.8% 2.8% 0.3%
4 4 93 50 77 41 69

4.4%
90 43 74

3.8%

42 93 38 77

3.7%
17 82 43 66

4.2%
3.5%
17 68 29 16 90 51

3.9%
18 88 48 67

3.6%
18 90

1.0%
7 20

22 18 5 41

53 44 50

155

49
82

Recent low level of FX contracts volumes limits the expansion of HFTs (see previous slide)

65

65

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

Jan-11 Feb-11 Mar-11 Apr-11

FX

Equities

Mini contracts

Interest Rates in BRL

% in Overall Volume

HFT BOVESPA Segment**

1Q11: BRL0.81 bi
1,20
1,00 0,80 0,60 0,40

52%
4Q10: BRL0.53 bi

6.6%

7,0%

4.5% 0.56
Nov-10

5.7% 0.73 0.96

5.9%

5.9%

6,0%
5,0% 4,0%

4.0% 0.50
Dec-10

0.75

0.78

Average daily trading in BOVESPA segment increased by 52% quarter-over-quarter since 3,0% the introduction of new prices in Nov10
2,0% 1,0%

0,20 -

0,0%

Jan-11

Feb-11

Mar-11
% of overall market

Apr-11
**Considers both buy and sell sides of the trade

ADTV - Day Trade (in BRL billions)

Adjusted Operating Expenses Lower Than Previous Quarter

OPEX supports growth initiatives; in line with the managements guidance
Expenses breakdown 1Q11 In BRL thousands
12% 7% 5%
52% 12%

1Q11
188,714 140,628

1Q10
133,804 115,502

% Change 1Q11/1Q10
41.0% 21.8%

4Q10
188,665 159,035

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

Operating expenses Adjusted operating expenses

Increase over 1Q10 to support hiring, IT investment and marketing to retail investors
12%

Increase in stock option expenses from 11 program; concentrated in 1Q11

Data processing Third party serv. Other

Personnel Dep. and Amort. Marketing

Increase in depreciation expense from IFRS adoption and 2010 investments Adjusted OPEX in line with the managements guidance range

(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

10

Strategic investments to enhance growth

Increases in headcount and marketing to support growth strategy
Adjusted Personnel (1Q11 x 1Q10)
33.2%

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)
Personnel Expenses (R$ millions)

Stock Option 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 Programs to attract more (1Q11 x 1Q10) retail investors to the market
151.3%

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

Intensification of marketing activities and strengthening of Financial Education campaigns

38.9%
5.3
1Q10

9.9
2Q10

15.8

11.4
4Q10

13.4
1Q11

3Q10

11

Financial Highlights
Solid financial position due to strong cash generation; continue to return cash to shareholders through buybacks and distributions Cash, cash equivalents and investments (BRL millions) Financial income
263

BRL63.2 million in 1Q11: 4.7% lower than 1Q10 Financial revenues: BRL81.6 million, 20.8% higher than
1,668

1Q11

2,418(1)

460

4,809

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

Investments (Capex)
269

BRL29.3 million in 1Q11: BRL21.8 million in IT and BRL7.5

million in facilities and equipment; Capex within guided range
1,677

4Q10

993 496

3,435

Buyback program

From Aug. 2010 until April 2011, 53.1 million shares were
bought within the current program (BRL691.4 million)
Market participants cash collateral and others*

The company can buy up to 60 million shares

Earnings distribution (payout)

Restricted f unds Subsidiaries** Available f unds

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

Approval of BRL66.5million 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)
12

*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,

IT Investments on Track to Support Growth Initiatives

Development of a new multi-asset trading platform

The first phase of this project (derivatives) is scheduled for completion at the end of 2Q11 with platforms for equities in 4Q11/1Q12 and fixed income in 2012.

New data center

The data center will host the Companys IT infrastructure and will support future expansion. It will also provide space for co-location and data hosting for brokers, investors, and independent software vendors.

Clearing integration (ongoing development)

New Risk management model
New IT infrastructure for the new clearinghouse

13

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
14

Strategic Priorities

Consistently Grow Revenues and Net Income

Capture Macro Growth Opportunities Current market gaps provide ideal conditions to drive sustainable longterm profit growth

Strengthen the business model

Investments to build world-class IT platform Capital efficiency from the clearing integration Improve the relationships with customers Rebalance of the pricing policy (trading and post-trading)

Invest in growth products and partnerships

Establish diversified product mix to sustain long-term growth Build on successful implementation of new products to generate meaningful revenues Develop partnerships with other exchanges

Deliver consistently improving financials

Focus on OPEX Control Strategically return cash to maximize shareholder value High payout ratio, coupled with buyback programs
15

APPENDIX

16

Income Statement Summary

BRL thousands Operating Revenues Net Operating Revenues 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 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

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

% 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%

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

% 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%

Adjusted EBITDA Margin

Adjusted Operating Expenses

70.4%
(140,628)

74.9%
(115,502)

-4,5 pp
21.8%

66.3%
(159,035)

4,1 pp
-11.6%

* Net Income attributable to BM&FBOVESPAs Shareholders

17

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
Gaap net income (+) Stock options (+) Deferred liability (-) Equity accounting* Adjusted net income
* CME Group equity accounting net of taxes

1Q11
270,756 24,544 124,134 35,218 384,216

1Q10
284,467 9,000 111,647 0 405,114

% Change 1Q11/1Q10
-4.8% -5.2%

4Q10
261,467 9,421 110,214 13,124 367,978

% Change 1Q11/4Q10
3.6% 4.4%

18

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)

9,000
-

172.7%
21.8%

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

160.5%
17.8% 56.2% -11.6%

140,628 115,502

19

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 Property and equipment

03/31/2011 3,779,796 1,542,301 2,031,429 206,066,00 20,252,482 1,396,972 1,235,124 161,848 2,265,098 361,071

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' 03/31/2011 12/31/2010 EQUITY

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

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

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

Shareholders' equity Capital Capital reserve

19,374,798 19,419,048 2,540,239 2,540,239

16,677,595 16,523,181 140,144 16,820 200,046 16,283

20

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 24,032,278 22,633,975

BOVESPA Segment: Operational Performance

ADTV (BRL millions)
Market
Stocks and Equity Deriv, Cash market Derivatives
Forward market Options market (stocks / indexes)
Fixed income and other

1Q11

1Q10

4Q10

1Q11/1Q10 (%)

1Q11/4Q10 (%)

Total

6,734.9 6,290.7 444.2 161.6 282.6 0.5 6,735.4

6,598.2 6,110.1 488.1 157.9 330.2 1.4 6,599.6

6,792.5 6,366.5 426.0 165.9 260.0 1.4 6,793.9

2.1% 3.0% -9.0% 2.3% -14.4% -62.0% 2.1%

-0.8% -1.2% 4.3% -2.6% 8.7% -64.2% -0.9%

Average daily number of trades

Market
Stocks and Equity Deriv, Cash market Derivatives Forward market
Options market (stocks / indexes) Fixed income and other

1Q11

1Q10

4Q10

1Q11/1Q10 (%)

1Q11/4Q10 (%)

Total

500,391 409,150 91,241 1,433 89,809 13 500,404

406,420 326,660 79,761 1,923 77,838 10 406,431

468,396 385,942 82,454 1,491 80,963 12 468,408

23.1% 25.3% 14.4% -25.5% 15.4% 24.5% 23.1%

6.8% 6.0% 10.7% -3.9% 10.9% 8.1% 6.8%

Trading margins (basis points)

Market
1Q11 1Q10 4Q10

Stocks and Equity Derivatives Cash Market Derivatives Forward Market Options Market Total BOVESPA

6.017 5.501 13.249 12.999 13.393 6.017

6.361 5.747 14.017 12.998 12.998 6.361

6.103 5.592 13.737 12.999 14.209 6.110

21

BM&F Segment: Operational Performance

ADTV (thousands of contracts)
1Q11 1Q10 4Q10 1Q11/1Q10 1Q11/4Q10 (%) (%)

Interest Rates in BRL FX Rates Stock Indexes Interest Rates in USD Commodities Mini Contracts OTC Total

2,127.0 422.0 87.7

1,605.8 589.8 85.2

1,832.6 490.6 88.8

32.5% -28.4% 3.0%

16.1% -14.0% -1.2%

127.5
10.3 76.7 14.5 2,865.8

77.9
11.5 68.2 15.3 2,453.6

100.3
14.9 78.0 11.3 2,616.5

63.8%
-10.8% 12.5% -5.4% 16.8%

27.1%
-31.2% -1.6% 27.9% 9.5%

RPC (BRL)
1Q11 1Q10 4Q10

1Q11/1Q10 1Q11/4Q10 (%) (%)

Interest Rates in BRL FX Rates Stock Indexes Interest Rates in USD Commodities Mini Contracts

0.843 2.016 1.639 1.102 2.016 0.142 1.393 1.040

0.838 1.929 1.527 1.218 1.878 0.134 1.526 1.126

0.860 1.978 1.719 1.134 2.416 0.126 1.462 1.099

0.6% 4.5% 7.3% -9.5% 7.4% 6.1% -8.7% -7.6%

-2.0% 1.9% -4.6% -2.8% -16.6% 12.2% -4.7% -5.4%

OTC
Total

22

BM&FBOVESPA IR Website: www.bmfbovespa.com.br/ir Phone: 55 11 2565 4007/4728/4729/4418/4834 E-mail: ri@bmfbovespa.com.br