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BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
The Brazilian Securities, Commodities and Futures Exchange
Quarterly Financial Statements at
September 30, 2010

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2.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF THE THIRD QUARTER 2010
Dear Shareholders,
We are pleased to present to you this discussion and analysis of our financial condition and
results of operations for the third quarter 2010.
OPERATING PERFORMANCE
The overall volumes traded on our markets in the third quarter 2010 generally outperformed
results for the same period in the prior year, in particular in the BM&F segment, where the
average daily trading volume surged 70.7% primarily due to volume traded in interest rate
contracts. Average daily volume traded in the quarter on markets comprising the Bovespa
segment climbed 13.3% year-over-year, as a result mainly of the overall higher market
capitalization of listed issuers, amongst them the highlight of the period, Brazilian oil and gas
giant Petrobras, which raised BRL 120 billion through a public offering.
On a quarter-on-quarter comparison, average daily volume traded on markets within the BM&F
segment was down 3.8%, and dropped 11.6% in the Bovespa segment. In the latter case, market
overhang sparked by uncertainties related to the Petrobras offering coupled with the global
slowdown in trading activities in the main international markets, negatively impacted volumes
and translated into average daily trading value of R$ 5.4 billion in July and R$5.6 billion in
August, however with a rebound late in September after completion of that offering, when the
average rose to R$6.7 billion a trend that continued on in October when average trading peaked
at R$7.77 billion, the highest daily value ever.
A positive highlight of the quarter, the number of active custody accounts rose to 661 thousand
in September from 580 thousand in June 2010 due primarily to the Banco do Brasil and
Petrobras public offerings.
In addition, in the third quarter of 2010, Company announced a wide market popularization
campaign, which through distinct, audience-oriented programs aims at providing financial
education to the population in general and educating prospective investors in capital market
investments.
Set forth below is a discussion of the Company's operational performance.

BM&F Segment
The average daily trading volume for the quarter soared 70.7% year-over-year to 2.43 million
contracts, as compared to 1.42 million in the quarter to September 2009, as a result of the
119.8% surge in volumes traded in BRL interest rate contracts.
The table below sets forth data on the evolution of average daily trading volume in the BM&F
segment.
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3.
_________________________________
Source: BM&FBOVESPA
The 3Q10 volume traded in interest rate contracts was positively influenced by uneven market
expectations about the direction of the benchmark interest rate and, in particular, the outcome
of the July meeting of Central Bank's Monetary Policy Committee (Copom), which ultimately
raised the benchmark rate by half a percentage point to 10.75%. However, as compared to the
prior quarter, the average daily trading volume was down 3.8% mainly due to 20.2% and 15.0%
drops in volumes traded in Fx contracts and stock-index-based contracts, respectively.
The quarter-on-quarter decline in volume traded in Fx contracts was due in part to the reduction
in volatility of the Brazilian real exchange rate against the U.S. dollar, as evidenced by the
evolution in mark-to market price shown in the chart below.
Source: BM&FBOVESPA.

The 3Q10 average Rate per Contract (RPC) for BM&F markets fell 16.1% year-over-year, to
R$1.17, primarily due to:
the greater volume of trading in BRL interest rate contracts, for which we charge a lower
fee rate when compared to other contracts, increased their share of the overall volume
to 68.4% from 53.1% in the prior year;
the 6.4%
1
appreciation of the Brazilian real against the U.S. dollar, which adversely
impacted revenues from trading in foreign currency, USD interest rate and commodities
contracts, as the fee rates for these contracts are denominated in U.S. dollars;
1 The average exchange rate for Fx futures and options on exchange rate fell to R$1.75 from R$1.87 in the prior year period.
3Q10
3Q09
Var.
3Q10/3Q09
2Q10
Var.
3Q10/2Q10
9M10
9M09
Var.
9M10/9M0
9
Interest Rates in BRL
1,661.0
755.6
119.8%
1,635.7
1.5%
1,634.8
857.2
90.7%
FX Rates
481.3
463.0
4.0%
603.5
-20.2%
557.0
431.9
29.0%
Stock Indices
84.4
69.6
21.2%
99.3
-15.0%
89.6
74.1
21.0%
Interest Rates in USD
95.8
64.4
48.7%
84.5
13.3%
86.2
76.7
12.4%
Commodities
15.0
10.1
47.5%
10.1
47.9%
12.2
9.9
23.7%
Mini Contracts
76.5
50.7
50.8%
79.5
-3.8%
74.8
51.0
46.6%
OTC
14.1
8.8
59.7%
10.8
31.4%
13.4
7.8
70.9%
Total
2,428.1
1,422.3
70.7%
2,523.4
-3.8%
2,468.1
1,508.7
63.6%
BM&F Segment- ADTV (thousands of contracts)
0%
10%
20%
30%
40%
J
an
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09
F
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b
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M
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-
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A
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M
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-
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J
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-
09
J
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-
09
A
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-
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S
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-
09
Oct
-
09
Nov
-
09
D
e
c
-
09
J
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-
10
F
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b
-
10
M
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-
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A
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-
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M
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-
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J
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-
10
J
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-
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A
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-
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S
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-
10
Volatility - (R$-US$) Adjusted Price
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4.
the fact that increases in trading volumes result in lower average rates per contract, as
our pricing policy includes progressive discounts that apply as trading volumes go up;
and
the fee rate discounts we give to trading via DMA (Direct Market Access) and to high
frequency traders (HTF) investors, both of which have been experiencing rising volumes
levels during the last few months.
The table below sets forth data on the evolution of average Rate per Contract (RPC) in the BM&F
segment.
Source: BM&FBOVESPA
In a quarter-on-quarter comparison, the average rate per contract rose 1.9%, mainly due to:
the impact of Fx contracts, such that RPC for these contracts increased 8.2%, partially
due to lower high frequency trading in Fx contracts, which fell to 4.7% of the volume
from 6.4% previously; and
the impact of the 5,1% increase in average RPC for BRL interest rate contracts, due to
the higher volume of trading in BRL interest rate futures expiring at the fourth and fifth
maturity dates of the year, the average rate for which is higher than for contracts with
other maturity date.
2
DMA (Direct Market Access) evolution
The volume of trading via DMA (Direct Market Access) has been increasing consistently in the
last few months and accounted for 16.0%
3
of the overall volume for the third quarter. While our
Traditional DMA channel continues to account for most DMA trading, in the last few months
other models, such as DMA via Provider and, more specifically, via co-location arrangements,
have been registering higher volumes levels.
The chart below sets forth a breakdown of quarterly volumes by DMA model, and as a
percentage of the overall average daily trading volume.



2 The Interest Rates in BRL contracts indexed in the ID (Interbank Deposit), which are the most heavily traded contracts, are
distributed in five maturities (1st of 21 working days / 2nd of 42 days / 3rd of 63 days / 4th of 84 days / 5th of 105 days).
3 We determine this percentage by dividing the volume of contracts by two (2), as we take into account both sides of the
trade, i.e. buy side and sell side, which is an industry practice adopted by exchanges across the world.
3Q10
3Q09
Var.
3Q10/3Q09
2Q10
Var.
3Q10/2Q10
9M10
9M09
Var.
9M10/9M0
9
Interest Rates in BRL
0.95
1.07
-10.9%
0.91
5.1%
0.90
0.96
-6.4%
FX Rates
1.99
2.03
-2.1%
1.84
8.2%
1.91
2.25
-14.8%
Stock Indices
1.50
1.56
-3.8%
1.52
-1.1%
1.51
1.64
-7.6%
Interest Rates in USD
1.08
1.18
-8.6%
1.16
-7.5%
1.15
1.48
-22.4%
Commodities
2.18
2.44
-10.6%
2.11
3.6%
2.07
2.29
-9.8%
Mini Contracts
0.13
0.17
-28.4%
0.13
-3.4%
0.13
0.19
-30.2%
OTC
1.69
1.48
13.6%
1.77
-4.8%
1.65
1.74
-5.0%
Total
1.17
1.39
-16.1%
1.14
1.9%
1.15
1.38
-16.7%
BM&F Segment - Revenue per Contract (BRL)
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5.
ADTV evolution from the flow of orders via DMA
(In thousands of contracts, buy and sell sides included)
Source: BM&FBOVESPA.
3Q10 volume of trading via co-location arrangements reached 4.1% of the overall trading
volume for the BM&F segment in September 2010. The chart below sets forth data on evolution
of average daily trading volume from orders flowed through co-location brokerage for the
periods indicated.
ADTV evolution: orders flowed via co-location arrangements
(in thousands of contracts)
Source: BM&FBOVESPA.
Trading volume from high frequency trader order flow accounted for 4.4% of the overall volume
traded at BM&F segment in the third quarter, with a daily average of 207 thousand contracts. A
quarter-on-quarter decline in volume was due mainly to thinner trading in
Fx contracts.
The chart below sets forth data on evolution of volumes from high frequency traders for the
periods indicated, by type of the most actively traded contracts, i.e., Fx contracts, equity index-
based contracts and mini contracts.
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6.
ADTV evolution from the high frequency order flow
(In thousands of contracts, buy and sell sides included)
Source: BM&FBOVESPA.
High frequency traders have been dealing largely in Fx contracts, index-based contracts and mini
contracts. The chart below sets forth data on evolution of high frequency trading by type of
contract, with particular emphasis on their participation in index-based and mini contracts, which
in September 2010 accounted for 27.0% and 59.6%, respectively. This evolution tends to lower the
average RPC not only due to rate discounts granted to high frequency traders, but also because of
the predominance of day-trades, which are charged at lower RPC.
High frequency volumes by type of contract
Source: BM&FBOVESPA.
In a breakdown by type of investor, the highlight for the quarter were institutional investors
whose share of the volume for the quarter increased to 30% from 27% mainly due to their more
active trading in BRL interest rates in July 2010, while the share attributable to foreign investors
fell to 22% from 25% in the prior quarter, primarily on account of a decrease in high frequency
volumes, as most of these traders are foreign investors. In addition, financial institutions
accounted for 42% of the overall volume, down from 43% previously.
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7.
Trading volume in the BM&F segment by type of investor
(As a percentage of the overall volume)
Source: BM&FBOVESPA.


Bovespa segment
3Q10 average daily trading value of R$5.9 billion was up 13.3% year-over-year, as a result mainly
of the overall higher market capitalization of listed issuers, which increased by 18.0% from the
same period one year ago. In turn, the 11.6% quarter-on-quarter fall in trading value is
explained partly by the global slowdown in trading activities in the main international markets,
but primarily by the market overhang related to Petrobras offering. Average daily value traded
in July and August amounted to R$5.4 billion and R$5.6 billion, respectively, whereas in
September, when the Petrobras offering was completed, volumes bounced back to close the
month at R$ 6.7 billion.
In October/2010 the average trading peaked at R$7.77 billion, the highest daily value ever.
Related to the market overhang and the reduction in Petrobras volume traded stocks, options
on stocks experienced lower trading volumes in the quarter, down 30.1% from the prior
quarter. Options on Vale and Petrobras shares, which are more actively traded options
contracts were particularly affected.
As measured in number of trades, the third quarter daily average increased 24.6% year-over-
year at 417 thousand daily trades versus 334 thousand in the prior year, whereas falling 3.3%
short of the average 431 thousand daily trades of the second quarter.
The rebound in market activity following the Petrobras offering resulted in a record number of
trades on October 13 with 800,223 trades, on the same day there was the expiration of Ibovespa
Futures contracts.
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8.
Average daily trading value and number of trades
Source: BM&FBOVESPA.
Average daily trading value
(in R$ millions)
Bovespa markets
3Q10
3Q09
Change
%
3Q10/3Q09
2Q10
Change
%
3Q10/2Q10
9M10
9M09
Change
%
9M10/9M09
Stocks and equity
derivatives
5,904.5
5,212.4
13.3%
6,679.6
-11.6%
6,386.7
4,783.8
33.5%
Stocks (cash
market)
5,508.2
4,885.6
12.7%
6,166.3
-10.7%
5,921.7
4,481.4
32.1%
Equity derivatives
396.4
326.8
21.3%
513.3
-22.8%
464.9
302.4
53.7%
Stock forwards
132.0
113.0
16.8%
134.9
-2.2%
141.3
84.2
67.8%
Options on stocks
+ stock indices
264.4
213.8
23.7%
378.4
-30.1%
323.6
218.2
48.3%
Fixed income and
other debt
securities ­ cash
market
1.3
2.1
-39.1%
3.0
-58.8%
1.9
1.6
17.3%
Total BOVESPA
5,905.8
5,214.4
13.3%
6,682.6
-11.6%
6,388.5
4,785.4
33.5%
Average daily number of trades
(in number of trades)
Bovespa markets
3Q10
3Q09
Change
%
3Q10/3Q
09
2Q10
Change
%
3Q10/2Q
10
9M10
9M09
Change
%
9M10/9M
09
Stocks and equity
derivatives
416,700
334,356
24.6%
431,120
-3.3%
418,191
313,165
33.5%
Stocks (cash market)
338,481
279,924
20.9%
348,130
-2.8%
337,884
255,063
32.5%
Equity derivatives
78,219
54,432
43.7%
82,990
-5.7%
80,307
58,102
38.2%
Stock forwards
1,390
1,441
-3.6%
1,485
-6.4%
1,593
1,165
36.8%
Options on stocks +
stock indices
76,829
52,991
45.0%
81,505
-5.7%
78,713
56,938
38.2%
Fixed income and
other debt securities
­ cash market
12
6
86.0%
13
-7.6%
12
7
75.8%
Total BOVESPA
416,712
334,362
24.6%
431,133
-3.3%
418,202
313,172
33.5%
Source: BM&FBOVESPA.
3.9
5.2
5.2
6.8
6.6
6.7
5.9
4.8
6.4
278
326
334
392
406
431
417
313
418
-
50
100
150
200
250
300
350
400
450
500
550
-
1,0
2,0
3,0
4,0
5,0
6,0
7,0
8,0
9,0
10,0
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
3Q10
9M09
9M10
ADTV (BRL billions)
Number of Trades (thousands)
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9.
The stock exchange capitalization
4
reached R$2.5 trillion at the end of the third quarter, up
18.9% year-over-year and 19.8% quarter-on-quarter. Based on a 3-month rolling average,
turnover velocity
5
plummeted to 60.1% in the quarter to September 2010, from 62.6% in the
same period one year ago and 69.2% in the prior quarter. This dampened turnover was primarily
due to the impact of the Petrobras offering.

In October the annualized turnover reached 71%, demonstrating the market recovery after this
deal was delivered.
Stock exchange capitalization (in R$ trillions)
Source: BM&FBOVESPA.
In a breakdown by type of investor, local institutional investors sustained the position as most
active traders in the Bovespa segment in the third quarter, having accounted for 35.5% of the
overall volume, followed by foreign and retail investors, which accounted for 29.0% and 26.2%
of the overall volume, respectively.
The chart below sets forth data on shares of volume traded by type of investor on a quarterly
basis in 2010 and the prior year.
Volumes traded on Bovespa Segment by type of investor
Source: BM&FBOVESPA.
4
The stock exchange capitalization is measured as the sum total of the market capitalization of all listed companies; market
capitalization in turn is a measurement of size of a public company equal to the share price multiplied by the number of shares
outstanding by listed company.
5
Turnover velocity refers to the annualized correlation between volume traded on the cash market in the period presented and
average market capitalization for the same period.
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
3Q10
1.5
1.8
2.1
2.3
2.4
2.1
2.5
33%
30%
30%
29%
31%
26%
26%
24%
25%
26%
27%
30%
35%
36%
34%
37%
35%
32%
27%
29%
29%
6%
6%
6%
10%
9%
8%
7%
2%
2%
2%
2%
2%
2%
2%
0%
0%
0%
0%
0%
0%
0%
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
3Q10
Retail
Institutional Investors
Foreign Investors
Financial Insitutions
Companies
Other
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10.
The third quarter heightened net balance of foreign capital flows, on the order of R$16.7 billion,
was influenced mainly by foreign investors participation in the stock offerings of Banco do Brasil
and Petrobras. The chart below sets forth comparative data on the net balance of foreign capital
flows for 2010, on a quarterly basis, and for 2009 and 2008.
Bovespa Segment­ Net flow of foreign investments
(in R$ billions)
Source: BM&FBOVESPA.
Moreover, the number of active custody accounts at the end of the quarter to September 2010
increased to 660.9 thousand, substantially driven by the stock offerings of Petrobras and Banco
do Brasil, and representing growth of 14% quarter-on-quarter and 22.8% year-over-year.
Number of active custody accounts
(in thousands)
Source: BM&FBOVESPA.
548
543
538
576
581
580
661
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
3Q10
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11.
Exchange-traded funds ­ ETFs
Third quarter daily value traded in shares of the seven ETFs currently listed on our equities
market ranged between R$26 and R$30 million, underlining a 35.3% growth in number of trades
in September 2010. Besides that, an ETF that mirrors the Financial Services Index (IFNC) was
launched.
Average daily value traded in ETF shares
(in R$ millions)
Source: BM&FBOVESPA.
Public offerings
Stock market offerings this quarter included one IPO (Renova) and two follow-ons offerings
(Banco do Brasil and Petrobras), resulting in gross proceeds of R$55.2 billion
6
, thus taking the
aggregate proceeds for the year to R$71.4 billion.
The chart below sets forth data on volumes raised through initial public offerings and follow-on
offerings on an annual basis.
Aggregate proceeds from public offerings
(in R$ billions)
*
Preliminary data through to October 27, 2010
Source: BM&FBOVESPA.
6
Petrobras public offering reached R$ 120 billion, being R$ 74.8 billion subscribed by Federal Government through the capitalization
of the pre salt petroleum reserves.
8.8
5.3
11.4
20.3
22.0 23.5 21.7 21.5
26.6 25.6
18.3
16.9
22.2
27.1
25.3
33.1
29.1
24.5 26.7
27.2
30.8
J
a
n
-
09
F
e
b
-
09
M
a
r
-
09
A
p
r
-
09
M
a
y
-
09
J
u
n
-
09
J
u
l
-
09
A
u
g
-
09
S
e
p
-
09
O
c
t
-
09
N
o
v
-
09
De
c
-
09
J
a
n
-
10
F
e
b
-
10
M
a
r
-
10
A
p
r
-
10
M
a
y
-
10
J
u
n
-
10
J
u
l
-
10
A
u
g
-
10
S
e
p
-
10
2004
2005
2006
2007
2008
2009
2010*
4.5
5.4
15.4
55.6
7.5
23.8
9.7
4.3
8.5
15.1
14.5
26.8
22.2
61.7
IPO
Follow-On
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12.
Securities lending
The volume of open interest positions at the end of 3Q10 had climbed to R$22.0 billion, soaring
33.5% year-over-year and 8.0% quarter-on-quarter. This growth largely correlates with the
recovery in market prices over the last few months encouraging higher exposure to securities
borrowing and lending, boosting the average monthly number of transactions by 35.4%, to 86.3
thousand from 63.8 thousand one year ago.
Bovespa segment - Open interest in securities lending transactions
Source: BM&FBOVESPA.
CONSOLIDATED FINANCIAL PERFORMANCE
Our financial statements have been prepared and are presented pursuant to the accounting
standards adopted in Brazil and already adopt the mandatory standards and interpretations for
2010, according to the rules issued by the Brazilian Securities Commission (CVM) and by the
Accounting Pronouncements Committee (CPC). These standards and interpretations aim to
adapt the Brazilian Accounting Standards to the International Financial Reporting Standards
(IFRS), issued by the International Accounting Standards Board ­ IASB.
Due to the adoption of new standards and interpretations and for better comparability with the
financial statements now released, we have revised and are releasing retrospectively adjusted
separate and consolidated financial statements for prior periods (income statement of 3Q09 and
balance sheet of 2009).
Operating revenues
3Q10 gross operating revenues climbed 27.0% year-over-year, to 541.6 million from R$426.5
million one year ago, due to the rebound in volumes traded on our markets; and the clearing
and settlement services we provided in connection with the Petrobras and Banco do Brasil
offerings.
Revenues of R$232.9 million from trading and settlement activities in the Bovespa
segment increased 10.8% from the same period one year ago and accounted for 43.0%
of the overall 3Q10 revenues. This climb correlates with a 13.3% year-over-year rise in
overall volume traded, however partially off-set by a drop in revenue margin, to 6.16
basis points from 6.30 bps one year ago, due to changes in the mix of investors actively
trading on Bovespa markets (growth of domestic institutional investors) ; and
Revenues from trading and settlement activities on the BM&F segment totaled R$186.8
million, soaring 41.5% from the same period one year before, and accounted for 34.5%
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13.
of the overall revenues. This rise is due to a 70.7% year-over-year surge in overall
volume traded, partially off-set by a drop in average rate per contract, which declined
16.1% from the prior year.
Moreover, revenues from clearing and settlement services, particularly from Petrobras
and Banco do Brasil offerings, totaled R$39.7 million (7.3% of total revenues), which
combined with other revenues from clearing and settlement activities (R$2.2 million)
accounted for 7.7% of our overall revenues.
Other operating revenues unrelated to trading and settlement activities totaled R$80.0 million
(14.8% of total revenues), rising 6.0% from R$75.5 million (17.7% of the overall revenues) one
year ago.
Set forth below is a brief discussion of other operating revenues from activities unrelated to
trading and settlement.
Market data sales: revenues of R$15.4 million from fees for distribution of market data to
vendors and other customers accounted for 2.8% of total revenues and were down 4.5% year-
over-year. This decline is attributable primarily to the reasons set forth below.
Starting August 2010, we implemented our new pricing policy, which seeks to
encourage individuals to access market data online through the Home Broker system, as
part of our efforts to widen trading by retail investors;
The exchange rate for the Brazilian real against the U.S. dollar appreciated 6.4% year-
over-year, negatively affecting our revenues from foreign customers, which account for
approximately one third of the revenues from market data sales.
Revenues from market access fees: revenues of R$11.3 million from fees charged for access
to our trading systems accounted for 2.1% of total revenues and were down 1.5% from R$11.5
million one year ago. This drop is due mainly to the new pricing policy (effective starting August)
for the technology packages supplied to market participants for access to our markets started
from August 2010
Depository/Custody services: at R$21.4 million, this revenue line surged 24.4% from R$17.2
million one year ago, and accounted for 4.0% of total revenues. Specifically, 3Q10 revenues
from our central securities depository grew by 18.5%, to R$17.9 million from R$15.1 million in
the earlier year, mainly due to a 17.8% year-over-year increase in the average number of
custody accounts, to 638.6 thousand from 542.1 thousand previously, coupled with a 25.9%
year-over-year climb in average value of assets held in custody (not including ADRs and foreign
investors), which rose to R$480.1 billion from R$381.3 billion one year ago. This also positively
impacted revenues derived from the additional fee we charge resident investors holding
accounts worth in excess of R$300.0 thousand.
Securities lending: at R$12.7 million, this revenue line soared 43.4% from R$8.9 million in the
prior year, and accounted for 2.3% of total revenues, primarily as a result of a 37.9% increase in
average financial value of open interest positions, to R$20.8 billion at the end of the quarter
from R$15.1 billion one year earlier.
Listings: revenues from offering registration, listing and annual fees totaled R$10.9 million, a
14.3% year-on-year increase and accounted for 2.0% of total revenues. This growth is
attributable mainly to the reasons set forth below.
revenues from offering registration fees increased 100% year-over-year
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.
14.
revenues from listing fees in the third quarter increased by 12.1% year-over-year and
correspond to fees paid by companies (12 companies) conducting initial public offerings
in the last 12 months; and
a reduction of discounts on annual fees charged from listed issuers.
Operating Expenses
Third quarter operating expenses totaled R$167.6 million, climbing 26.5% from the same period
one year ago. Adjusted operating expenses
7
totaled R$145.8 million, increasing 35.0% year-over-
year. This rise correlates mainly with a higher number of employees and an escalation in IT and
marketing activities, with these three groups of expenses representing 72.4% of the growth of
those adjusted expenses.
The main changes in this line item are set forth below.
Personnel: personnel expenses of R$71.7 million were up 12.2% from the same period one year
ago, primarily as a result of:
a 6% increase over our August 2010 payroll, as required under the collective bargaining
agreement entered into with the workers' union;
a 20,1%
8
year-over-year increase in headcount, which is in line with our growth strategy.
Consistent with this strategy, most of our new employees have been hired to work in
the technology and business development areas.
The rise in Personnel expenses was partially offset by a 54% year-over-year decline in expenses
with the stock options program, down to R$5.5 million from R$11.9 million one year ago.
As adjusted to eliminate 3Q10 recognized expenses from the stock option plan, personnel
expenses amounted to R$66.2 million, up 27.4% year-over-year.
Data processing: data processing expenses of R$27.4 million for the quarter were up 13.1% from
the year before, mainly due to rent expenses related to the operations of our contingency site
and expenses for projects under development for improvements in throughput capacity and the
performance of our trading and settlement systems.
Marketing and promotion: these expenses amounted to R$15.8 million, increasing 170.0% from
the same quarter in the prior year, mainly as a result of the costs to bolster our financial
education programs and market popularization campaigns, in line with our strategy to educate
and attract prospective retail investors and boost trading activities.
Outsourced Services: this line item totaled R$12.3 million, up 31.2% year-over-year, as a result
mainly of lawyers' fees paid in connection with the negotiations and agreements related to the
international partnerships established.
Other: third quarter other expenses amounted to R$8.9 million (versus R$5.7 million one year
ago), a 56.4% year-on-year increase primarily related to higher in donations and contributions
and travel expenses.
Interest income, net
Net interest income for the quarter to September 2010, in the amount of R$77.4 million, was up
35.7% from the same period one year ago. On a year-over-year comparison, financial revenues
7
Adjusted for Depreciation, Stock Options, Provision for Doubtful Accounts and taxes related to equity accounting.
8
Refers to the average headcount for each of 3Q10 and 3Q09.
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.
15.
increased to R$100.6 million from R$65.9 million earlier, reflecting the increase in the interest
rates paid on financial investment and the higher amount of average cash invested. This
increase in financial revenues was partially off-set by the increase in financial expenses, which
grew to R$23.2 million in the quarter from R$8.8 million one year ago primarily due to interest
paid in connection with our bond offering completed in July 2010.
Income tax and social contribution on net income
Earnings before taxes (EBT) for 3Q10 totaled R$419.9 million, as compared to R$307.5 million in
the prior year, a 36.5% rise year-over-year which correlates with our improved operating and
financial performances.
The line item current and deferred income tax and social contribution' totaled R$126.6 million
and R$ 125.8 million of deferred taxes, and correlated mainly with the following:
Recognition of deferred tax liabilities of R$111.6 million related to temporary differences
from amortization of goodwill for tax purposes, with no impact on cash flow;
Reversal of tax credits in the amount of R$11.9 million related to tax losses carried forward
which correlate mainly with payment of interest on shareholders' equity to shareholders,
and the social contribution loss from the prior quarter; and
R$2.3 million related to other temporary provisions.
The table below sets forth a breakdown of our calculations of `income and social contribution
taxes' and `deferred income and social contribution taxes.
(in R$ millions)
3Q10
(-) Deferred liabilities
-111.6
(-) Reversal of tax credits
-11.9
(-) Temporary Provisions
-2.3
Deferred income tax and social contribution
-125.8
EBITDA and net income
3Q10 EBITDA was R$336.4 million, up 28.4% from R$262.0 million in the same period one year
ago (EBITDA margin was 69.1%). The rise in EBITDA correlates primarily with the increase in
volumes traded.
Net income for the third quarter 2010 totaled R$293.2 million, in a 18.8% year-on-year rise from
R$246.8 million earlier, primarily attributable to the improvement in operating performance;
the higher net interest income; and our share of equity income in the CME Group.
In the nine-month period ended September 30, 2010, the accumulated EBITDA of R$1,012.7
million (9M10 EBITDA margin of 71.3%) grew 44.9% from the same period in the prior year,
whereas the year-to-date GAAP net income of R$882.6 million rose 33.3% from the year before.
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.
16.
The table bellow sets forth the calculation of EBITDA.
In thousands of R$
3Q10
3Q09
9M10
9M09
Reported Net Income
293,208
246,795
882,643
661,949
Income tax and social contribution
126,646
60,740
337,924
186,134
Net, financial income
(77,407)
(57.042)
(222,649)
(179,758)
Equity Accounting (Net)
(21,139)
(21,139)
Depreciation
15,067
11,546
35,893
30,384
EBITDA
336,375
262,039
1,012,672
698,709
Main lines items under Assets
Total Assets
At the end of the three months to September 2010, the consolidated balance sheet of
BM&FBOVESPA S.A. registered total assets of R$22,771.7 million, up 9.3% from R$20,837.8
million at the end of the quarter to December 2009.
Cash and cash equivalents; financial investments
Cash and cash equivalents, including short- and long-term financial investments, totaled to
R$3,688.2 million and accounted for 16.2% of total assets.
Non-current assets
Non-current assets totaled R$19,640.2 million, where long-term receivables (including long-term
financial investments) amount to R$854.0, equity investments amount to R$2,312.6 million,
property and equipment amount to R$287.9 million, and intangible assets amount to
R$16,185.6 million.
Intangible assets consist primarily of goodwill correlated with expectation of future profitability
related to the acquisition of Bovespa Holding. Goodwill was tested for impairment in December
2009. The test was based on a valuation report prepared by a specialist firm and has not
resulted in the any need to adjust the carrying value of goodwill.
Management has not identified factors that would require reconsideration of the conclusions in
December 2009 regarding the absence of impairment of goodwill.
Equity investments totaled R$1,64 billion and correlate primarily with the July 2010 purchase of
additional ownership interest (3.2%) in the shares of the CME Group, increasing the holding to
5% (from 1.78% previously). After the increase in the participation, the Company became the
largest shareholder of CME Group
9
.
Based on Management's understanding that the material qualitative features of the mutual
relationship existing between BM&FBOVESPA and the CME Group are such that give us
significant influence in the investee, the Company has identified the CME Group as an associate
and accounts for the investment pursuant to the equity method of accounting
10
.

9
Source: Thomson
10
For further details see notes 3 (f) and 7 of the Third Quarter Financial Statements
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.
17.
Main lines items under Liabilities and Shareholders' Equity
Current liabilities
Current liabilities amounting to R$1,422.8 million accounted for 6.2% of total liabilities at the
end of the quarter to September 2010, up 24.6% from R$1,142.1 million at the end of December
2009, when it accounted for 5.5% of total liabilities. This rise is due mainly to the higher amount
of cash collateral pledged by market participants, which increased to R$984.8 million in the
quarter from R$810.3 million earlier and the increase in other liabilities to R$ 257.9 million from
R$ 194.9 million.
Long-term liabilities
Long-term liabilities at the end of the quarter to September 2010 amounted to R$1,698.7
million, and consist primarily of:
Financing: dated July 16, 2010, we implemented 10-year bond issuance in the aggregate
principal amount of US$612 million, in the form of 6,120 senior unsecured notes in minimum
denominations of US$100 thousand, earning interest at 5.50% per annum, due July 16, 2020.
The outstanding balance as of September 30, 2010 was R$1,041.0;
Deferred income tax and social contribution, provision for contingencies and legal
obligations.
Current liabilities at the end of the quarter to September 2010 were 381.4% higher than in the
prior quarter, and correlate with the July 2010 10-year bond issuance.
Shareholders' equity
Shareholders' equity totaled R$19,650.2 million, up 1.6% from the previous quarter, and
substantially composed of capital stock of R$2,540.2 million and a capital reserve of R$16,672.6
million.
OTHER FINANCIAL HIGHLIGHTS
Earnings distribution
On November 9, 2010, the Board of Directors determined the payment of dividends in the
amount of R$ 235,875 thousand, to be paid on November 25, based on the shareholders'
positions held on November 11, 2010.
Stock Buy Back Program
According to the Share Buyback Program approved at a meeting of our Board of Directors held
on August 12, 2010, as of September 30, 2010, we had repurchased a total of 13,930,000
outstanding shares, at an average price per share of R$ 13.46.
The table below sets forth a summary of these repurchases:
Periods
Number of Shares
Average Price (R$)
Total (R$)
August 2010
5,650,000
12.83
72,466,569
September 2010
8,280,000
13.89
115,044,628
Total
13,930,000
13.46
187,511,197
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.
18.
In October, 12,447,900 shares were bought, at an average price of R$14.02, amounting to R$
174.5 million. The total number of shares bought back through October was 26,377,900, at an
average price of R$13.72, amounting to R$362,088,666.
Under the Share Buyback Program the Company has been authorized to repurchase up to
31,000,000 common outstanding shares, representing approximately 1.55% of the free float.
The buyback period extends through December 31, 2010.
Revenues Reclassification
The reclassification of some revenues' lines was made in order express more properly the
dynamics of the company's businesses in its Financial Statements, highlighting the trading and
clearing activities of other services and products. The main changes were:
Reclassification of revenues from securities lending, listing, depository and trading
access (brokers), which were formerly within the group of Trading and Clearing of the
Bovespa Segment, to the line "Other Operational Revenues"
Reclassification of revenues from the Bolsa Brasileira de Mercadorias and from the
Banco BM&F from trading and or Clearing ­ BM&F Segment to the line "Other
Operational Revenues"
Risk management - Central Counterparty Risk
BM&FBOVESPA operates the following central counterparty clearing facilities, which we
absorbed during the exchange integration process which combined BM&F and Bovespa: (i)
equities and corporate debt clearing facility, (ii) derivatives clearing house, (iii) FX clearing
house; and (iv) government securities clearing house.
The Central Bank considers that these clearing facilities perform systemically material roles in
the capital markets. In performing clearing and settlement activities, they act as central
counterparty (CCP) clearing houses to ensure multilateral settlement of transactions carried out
on the equities markets, the derivatives markets, the spot Fx market, the government bonds
market and the corporate debt market.
The central counterparty clearing facilities are responsible for providing efficiency and stability
to the market by ensuring trades are properly cleared and settled. A CCP interposes itself
between counterparties to financial transactions, as buyer to the seller and seller to the buyer.
Acting as central counterparty, each of our clearing houses absorbs the risks of the
counterparties in-between a trade transaction and its clearing and settlement, carrying out
multilateral activities for financial settlement and clearing of securities and other financial
assets.
For proper risk mitigation, each clearing facility has its own risk management system and
safeguard structure. These structures comprise the universe of mechanisms and remedies a
clearing house may resort to in order to cover losses from failed settlement by a participant. The
key components of these safeguard structures include collateral deposited by market
participants, often in the form of margin, plus special funds intended to cover possible losses
due to default and, in addition, joint liability undertaken by brokers and clearing agents
regarding transactions they intermediate or clear.
Transactions carried out on our markets are secured by collateral posted in the form of cash,
government bonds and corporate debt securities, bank letters of guarantee and stocks, among
other things. As of September 30, 2010, the aggregate of collateral thus pledged totaled R$135.6
billion (versus R$101.6 billion as of September 30, 2009), 73.4% of which in the form of cash and
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.
19.
government bonds. This compares to R$120.7 billion in total collateral at the end of June 2010,
75.8% of which in the form of cash and government bonds.
The table below sets forth comparative data on pledged collateral at the end of the periods
indicated.
In billions of Reais
Clearing facility
September
30, 2010
June 30,
2010
March 31,
2010
December
31, 2009
September
30, 2010
Derivatives
83.2
75.8
76.9
60.6
60.5
Forex
5.2
4.3
3.8
3.8
3.6
Debt Securities
0.7
0.8
0.8
0.8
0.9
Equities (CBLC)
46.4
39.8
41.7
36.4
35.7
TOTAL
135.6
120.7
123.2
101.6
100.7

The quarter-on-quarter increase in collaterals deposited at our clearing facilities is due mainly to
a jump in margin posted for both trades in equities (Bovespa segment), to R$46.4 billion in the
quarter from R$39.8 billion previously, and trades in derivatives (BM&F segment), to R$83.2
billion from R$75.8 billion in the prior quarter, in each case as a result of the leap in open
positions held by market participants.
OTHER 3Q10 HIGHLIGHTS
New pricing policy
We have recently announced the new pricing policy for high frequency trading (HFT) on both
BM&F and Bovespa segments. Pursuant to this policy, the first phase is valid since November 1,
2010 and the second will start on January 3, 2011, investors will register HFT accounts to engage
in high frequency trading and, will be granted progressive discounts based on trading volume
bands.
Continuing market popularization programs
We recently launched the market popularization campaign named "Quer ser sócio?" ("Want to
be a partner?"), to help illustrate the dynamics of investing in the stock market, which focuses
primarily on educating future and prospective retail investors through mass media initiatives
(including free-to-air television, radio broadcasts and the Internet). Other education and
popularization campaigns include the "Financial Education TV Show", "Radio Web," free online
courses, "SimulAção" (an investment simulator), a radio channel for our Mulheres em Ação
("Women in Action") gateway, Q&A sessions, lectures and other financial and investment
education actions, such as Desafio BM&FBOVESPA (BM&FBOVESPA Challenge, a student contest),
Dinheiro no Bolso ("Saving Money") and our sponsorship of the Brazilian government's program
known as National Financial Education Strategy (Estratégia Nacional de Educação Financeira), or
ENEF.
Brazilian Depositary Receipts (BDRs)
On October 5, 2010, the first ten local listings of Unsponsored Level I BDRs began to trade on
Bovespa segment with 54 trades registered and financial value traded of R$2.87 million on this
first trading day. The issuer of these ten listings is Deutsche Bank.
Financial institutions, investment funds, portfolio managers and certain CVM licensed
professional traders are permitted to trade in these unsponsored BDRs (the latter two are only
permitted to trade for their respective managed or proprietary portfolios). In addition, retail
investors are permitted to trade through investment funds holding unsponsored BDR portfolios.
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.
20.
Unsponsored Level I BDRs trade on the organized OTC market operated by us within the
Bovespa segment.
Technology developments
In addition to initiatives related to pricing policies and new products, we invest continually in
developing our trading platforms and enhancing the network for access to our markets to
reduce latency and improve the performance of our trading and clearing and settlement
systems. Technology development highlights for the period include:
BVMF-CME joint development of multi-asset class trading platform: we continue to
work in cooperation with the CME Group to develop and implement a multi-asset class
electronic platform for the trading of equities, derivatives, foreign currency and fixed
income securities. Phase 1 of the project (derivatives and Fx modules for replacement of
the GTS system) is currently undergoing technology tests and is set to be implemented
in the first quarter of 2011.
DMA via Provider and via Co-location for the Bovespa segment: the CVM recently
authorized us to implement additional Direct Market Access channels for the Bovespa
segment, consisting of DMA via Provider, via Direct Connection and via Investor Co-
location arrangements. These additional DMA channels started operating on September
1, 2010. Currently, we have 36 racks allocated to co-location arrangements already
agreed with investors.
Throughput capacity: as a result of continued work to boost our trading systems'
throughput capacity, implementation has now been completed in the BM&F segment
permitting throughput of 400 thousand daily transactions, whereas in the Bovespa
segment the technology improvements are set to implement in the fourth quarter 2010,
with throughput increasing to 3 million daily transactions from 1.5 million presently.
In addition, we have also implemented in the third quarter the new unified interface for market
data distribution, such that market data flowing from all our markets have been integrated for
distribution through a single terminal.
INDEPENDENT AUDITORS

The Company and its subsidiaries have retained PricewaterhouseCoopers to audit the financial
statements.
The policy that governs the hiring of independent auditing services by the Company and
subsidiaries is based on internationally accepted principles which preserve the independence of
these services and include the following practices: (i) the auditors cannot hold executive or
management positions in the Company and its subsidiaries; (ii) the auditors cannot perform
operational activities in the Company and its subsidiaries which may compromise the
effectiveness of the audit work; and (III) the auditors must be impartial in order to avert conflicts
of interest and loss of independence, and must be objective in their opinions and reports
regarding the financial statements.
In the nine-month period ended September 30, 2010, the independent auditors and their
related parties have not provided services unrelated to the audit to the Company and its
subsidiaries.
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A.
­
Bolsa de Valores, Mercadorias
e Futuros
Quarterly Information and
Review Report of Independent Accountants
September 30, 2010
background image
2
(A free translation of the original in Portuguese)

Review Report of Independent Accountants


To the Board of Directors and Shareholders
BM&FBOVESPA S.A.
­
Bolsa de Valores, Mercadorias e Futuros

1
We have reviewed the accounting information included in the Quarterly Information of
BM&FBOVESPA S.A. - Bolsa de Valores, Mercadorias e Futuros and subsidiaries (individual
and consolidated) for the quarter ended September 30, 2010, comprising the balance sheet,
the statements of income, of comprehensive income, of changes in
shareholders'
equity, of
cash flows and of value added, explanatory notes and the management report. This Quarterly
Information is the responsibility of the Company's management.

2
Our review was carried out in accordance with specific standards established by the Institute
of Independent Auditors of Brazil (IBRACON), in conjunction with the Federal Accounting
Council (CFC), and mainly comprised: (a) inquiries of and discussions with management
responsible for the accounting, financial and operating areas of the Company with regard to
the main criteria adopted for the preparation of the Quarterly Information and (b) a review of
the significant information and of the subsequent events which have, or could have,
significant effects on the financial position and operations of the Company and its
subsidiaries.

3
Based on our review, we are not aware of any material modifications that should be made to
the accounting information included in the Quarterly Information referred to above in order
that it be stated in accordance with the accounting practices adopted in Brazil applicable to
the preparation of Quarterly Information, consistent with the standards issued by the Brazilian
Securities Commission (CVM).






background image
BM&FBOVESPA S.A.
­
Bolsa de Valores, Mercadorias e Futuros


3
4
As mentioned in Note 2, the Brazilian Securities Commission (CVM) has approved a series of
Pronouncements, Interpretations and Technical Guidance issued by the Accounting
Pronouncements Committee (CPC), effective for 2010, which changed the accounting
practices adopted in Brazil. These changes were adopted by the Company in the preparation
of the quarterly information for the quarter ended September 30, 2010. The quarterly
information of the previous period, presented for comparison purposes, has been adjusted to
reflect these changes in the accounting practices adopted in Brazil and is being restated as
established by CPC 23 - Accounting Practices, Changes in Estimates and Correction of
Errors.

5
As mentioned in Note 2, the quarterly information of the Company, originally presented on
November 9, 2010, has been adjusted and is being restated to reflect a better interpretation
of the accounting practices adopted in Brazil.

São Paulo, February 17, 2011



PricewaterhouseCoopers
Auditores Independentes
CRC 2SP000160/O-5



Edison Arisa Pereira
Contador CRC 1SP127241/O-0
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BM&FBOVESPA S.A. - Bolsa de Valores, Mercadorias e Futuros
Balance Sheet
(In thousands of reais)
(A free translation of the original in Portuguese)
Assets
Notes
9/30/2010
12/31/2009
9/30/2010
12/31/2009
Current assets
3.157.146
3.424.607
3.131.595
3.468.852
Cash and cash equivalents
4 (a)
40.755
46.746
42.890
50.779
Financial investments
4 (b)
2.947.846
3.257.365
2.917.792
3.295.356
Accounts receivable - net
5
54.549
39.042
55.810
40.205
Other receivables
6
17.594
21.598
18.046
22.656
Taxes recoverable and prepaid
86.475
51.143
87.071
51.143
Deferred income tax and social contribution
20
Prepaid expenses
9.927
8.713
9.986
8.713
Non-current
19.403.991
17.212.509
19.640.153
17.368.987
Long-term receivables
559.066
746.476
854.033
958.993
Financial investments
4 (b)
415.279
378.537
707.517
585.648
Other receivables - net
6
801
626
3.001
4.626
Deferred income tax and social contribution
20
51.601
283.824
51.601
283.824
Judicial deposits
15 (g)
89.475
83.489
90.004
84.895
Prepaid expenses
1.910
-
1.910
-
Investments
2.376.257
100.791
2.312.649
39.723
Interest in subsidiaries and affiliates
7 (a)
2.376.257
100.791
2.274.060
-
Other investments
7 (b)
-
38.589
39.723
Property and equipment
8
283.086
236.941
287.869
241.939
Intangible assets
9
16.185.582
16.128.301
16.185.602
16.128.332
Goodwill
16.064.309
16.064.309
16.064.309
16.064.309
Software and projects
121.273
63.992
121.293
64.023
Total assets
22.561.137
20.637.116
22.771.748
20.837.839
BM&FBOVESPA
Consolidated
at September 30 and June 30, 2010
The accompanying notes are an integral part of this Financial Statements.
4
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BM&FBOVESPA S.A. - Bolsa de Valores, Mercadorias e Futuros
Balance Sheet
at September 30 and June 30, 2010
(In thousands of reais)
(A free translation of the original in Portuguese)
Liabilities and shareholders' equity
Notes
9/30/2010
12/31/2009
9/30/2010
12/31/2009
Current
1.229.535
958.946
1.422.836
1.142.076
Collateral for transactions
18
984.766
810.317
984.766
810.317
Earnings and rights on securities in custody
10
33.412
31.897
33.412
31.897
Suppliers
35.326
21.318
35.353
21.444
Salaries and social charges
48.408
42.525
49.277
43.237
Provision for taxes and contributions payable
11
25.688
24.404
25.976
24.616
Income tax and social contribution
-
886
2.126
3.697
Financing
13
19.151
9.295
19.151
9.295
Dividends and interest on own capital payable
2.655
839
2.655
839
Redemption of preferred shares to be settled
12
1.839
1.839
1.839
1.839
Other liabilities
14
67.867
15.626
257.858
194.895
Unearned discount
10.423
-
10.423
-
Non-current
1.697.320
351.635
1.698.725
352.872
Financing
13
1.027.188
2.495
1.027.188
2.495
Deferred income tax and social contribution
20
616.448
300.930
616.448
300.930
Provision for contingencies and legal obligations
15
53.684
48.210
55.089
49.447
Shareholders' equity
16
19.634.282
19.326.535
19.650.187
19.342.891
Capital and reserves attributable to shareholders of the parent
Capital
2.540.239
2.540.239
2.540.239
2.540.239
Capital reserve
16.672.607
16.492.260
16.672.607
16.492.260
Revaluation reserves
23.116
23.551
23.116
23.551
Statutory reserves
441.572
403.191
441.572
403.191
Treasury shares
(390.014)
(230.102)
(390.014)
(230.102)
Valuation adjustments
(65.732)
77.396
(65.732)
77.396
Additional Dividend proposed
-
20.000
-
20.000
Retained earnings
412.494
-
412.494
-
19.634.282
19.326.535
19.634.282
19.326.535
Interest of non-controlling shareholders
-
15.905
16.356
Total liabilities and shareholders' equity
22.561.137
20.637.116
22.771.748
20.837.839
BM&FBOVESPA
Consolidated
The accompanying notes are an integral part of this Financial Statements.
5
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BM&FBOVESPA S.A. - Bolsa de Valores, Mercadorias e Futuros
Statement of Income
Quarters and nine month periods ended September 30, 2010 and 2009
(In thousands of reais, unless otherwise stated)
(A free translation of the original in Portuguese)
BM&FBOVESPA
Notes
3
rd
Quarter
Accumulated
3
rd
Quarter
Accumulated
Gross operating revenues
536.126
1.564.680
418.132
1.181.557
Trading and/or settlement system - BM&F
186.803
541.154
132.017
403.930
Derivatives
181.387
525.667
127.457
388.102
Foreign exchange
5.392
15.415
4.534
15.689
Assets
24
72
26
139
Trading and/or settlement system - Bovespa
274.812
790.615
219.019
575.534
Negotiation ­ trading fees
173.780
547.148
158.308
417.227
Transactions ­ clearing and settlement
59.110
191.624
51.809
144.316
Other
21
41.922
51.843
8.902
13.991
Other operating revenues
74.511
232.911
67.096
202.093
Loans of marketable securities
12.714
35.579
8.866
22.456
Listing of marketable securities
10.928
33.193
9.562
29.515
Depository, custody and back office
21.447
64.607
17.235
50.537
Trading participant access
11.317
37.194
11.491
34.557
Vendors ­ quotations and market information
15.351
51.798
16.082
47.774
Commodity classification fee
2.328
2.814
1.716
3.216
Other
22
426
7.726
2.144
14.038
Deductions of revenue
(54.295)
(158.416)
(43.132)
(120.237)
Transfer of trading fees - BOVESPA
-
-
-
-
PIS and COFINS taxes
(48.352)
(140.989)
(38.236)
(106.904)
Taxes on services
(5.943)
(17.427)
(4.896)
(13.333)
Net operating revenue
481.831
1.406.264
375.000
1.061.320
Operating expenses
(162.075)
(425.131)
(126.871)
(395.295)
Administrative and general
Personnel and related charges
(68.779)
(191.840)
(61.939)
(212.334)
Data processing
(26.510)
(70.722)
(22.964)
(68.539)
Depreciation and amortization
(14.618)
(34.544)
(11.101)
(29.051)
Outsourced services
(11.642)
(30.153)
(8.415)
(25.713)
Maintenance in general
(2.386)
(7.094)
(2.522)
(7.432)
Communications
(6.566)
(18.895)
(6.156)
(16.298)
Rents
(587)
(1.658)
(429)
(1.630)
Supplies
(681)
(1.886)
(693)
(1.724)
Promotion and publicity
(15.671)
(30.523)
(5.688)
(13.190)
Taxes
(4.266)
(7.560)
(268)
(740)
Board and committee members' compensation
(1.507)
(4.385)
(1.184)
(3.885)
Sundry
23
(8.862)
(25.871)
(5.512)
(14.759)
Equity in the results of subsidiaries
7
24.511
22.333
2.426
4.568
Financial results
74.475
215.535
55.407
174.409
Financial income
91.991
235.713
58.675
186.300
Financial expenses
(17.516)
(20.178)
(3.268)
(11.891)
Income before taxation of profit
418.742
1.219.001
305.962
845.002
Income tax and social contribution
20 (c)
(125.761)
(335.907)
(60.196)
(184.126)
Current
-
-
-
35.503
Deferred
(125.761)
(335.907)
(60.196)
(219.629)
Net income for the period
292.981
883.094
245.766
660.876
Attributable to:
Shareholders of the parent
292.981
883.094
245.766
660.876
Non-controlling interest
-
-
-
-
(1)Information relating to earnings per share are presented in Note 16(g)
2010
2009
The accompanying notes are an integral part of this Financial Statements.
6
background image
BM&FBOVESPA S.A. - Bolsa de Valores, Mercadorias e Futuros
Statement of Income
Quarters and nine month periods ended September 30, 2010 and 2009
(In thousands of reais, unless otherwise stated)
(A free translation of the original in Portuguese)
Consolidated
Notes
3
rd
Quarter
Accumulated
3
rd
Quarter
Accumulated
Gross operating revenues
541.609
1.579.255
426.505
1.199.004
Trading and/or settlement system - BM&F
186.802
541.154
132.017
403.930
Derivatives
181.387
525.667
127.457
388.102
Foreign exchange
5.391
15.415
4.534
15.689
Assets
24
72
26
139
Trading and/or settlement system - Bovespa
274.812
790.615
219.019
575.534
Negotiation ­ trading fees
173.780
547.148
158.308
417.227
Transactions ­ clearing and settlement
59.110
191.624
51.809
144.316
Other
21
41.922
51.843
8.902
13.991
Other operating revenues
79.995
247.486
75.469
219.540
Loans of marketable securities
12.714
35.579
8.866
22.456
Listing of marketable securities
10.928
33.193
9.562
29.515
Depository, custody and back office
21.447
64.607
17.235
50.537
Trading participant access
11.317
37.194
11.491
34.557
Vendors ­ quotations and market information
15.352
51.799
16.082
47.774
Commodity classification fee
2.328
2.814
1.716
3.216
Bolsa Brasileira de Mercadorias (Brazilian Commodities Exchange)
1.762
3.932
3.535
6.191
Bank
2.117
5.937
2.194
6.217
Other
22
2.030
12.431
4.788
19.077
Deductions of revenue
(54.743)
(159.640)
(43.510)
(121.219)
PIS and COFINS taxes
(48.683)
(141.895)
(38.406)
(107.439)
Taxes on services
(6.060)
(17.745)
(5.104)
(13.780)
Net operating revenue
486.866
1.419.615
382.995
1.077.785
Operating expenses
(167.561)
(444.839)
(132.502)
(409.460)
Administrative and general
Personnel and related charges
(71.687)
(199.776)
(63.883)
(215.682)
Data processing
(27.400)
(73.308)
(24.233)
(71.410)
Depreciation and amortization
(15.067)
(35.893)
(11.546)
(30.384)
Outsourced services
(12.293)
(32.056)
(9.370)
(28.192)
Maintenance in general
(2.529)
(7.543)
(2.750)
(8.142)
Communications
(6.622)
(19.063)
(6.219)
(16.459)
Rents
(700)
(2.043)
(558)
(2.048)
Supplies
(699)
(1.935)
(713)
(1.770)
Promotion and publicity
(15.772)
(30.970)
(5.841)
(13.608)
Taxes
(4.353)
(7.838)
(495)
(1.329)
Board and committee members' compensation
(1.507)
(4.385)
(1.184)
(3.885)
Sundry
23
(8.932)
(30.029)
(5.710)
(16.551)
Equity Income
7
23.142
23.142
-
-
Financial results
77.407
222.649
57.042
179.758
Financial income
100.570
256.983
65.870
208.152
Financial expenses
(23.163)
(34.334)
(8.828)
(28.394)
Income before taxation of profit
419.854
1.220.567
307.535
848.083
Income tax and social contribution
20 (c)
(126.646)
(337.924)
(60.740)
(186.134)
Current
(885)
(2.017)
(544)
33.495
Deferred
(125.761)
(335.907)
(60.196)
(219.629)
Net income for the period
293.208
882.643
246.795
661.949
Attributable to:
Shareholders of the parent
292.981
883.094
245.766
660.876
Non-controlling interest
227
(451)
1.029
1.073
(1)Information relating to earnings per share are presented in Note 16(g)
2010
2009
The accompanying notes are an integral part of this Financial Statements.
7
background image
BM&FBOVESPA S.A. - Bolsa de Valores, Mercadorias e Futuros
Quarters and nine month periods ended September 30, 2010 and 2009
(In thousands of reais)
BM&FBOVESPA
2010
2009
3
rd
Quarter
Accumulated
3
rd
Quarter
Accumulated
Net income for the quarter
292.981
883.094
245.776
660.876
Valuation adjustments (1)
(82.102)
(143.128)
(46.450)
48.374
Mark to market of financial assets available for sale
(16.370)
(77.396)
(46.450)
48.374
Exchange variation on foreign investment in associate
(95.592)
(95.592)
-
-
Hedge of net investment abroad
27.992
27.992
-
-
Participation in other comprehensive income of affiliate
1.868
1.868
-
-
Total comprehensive income for the quarter
210.879
739.966
199.316
709.250
Attributable to:
210.879
739.966
199.316
709.250
Shareholders of the parent
210.879
739.966
199.316
709.250
Non-controlling interest
-
-
-
-
(1) Presented items are net of tax effect, when aplicable
Statement of Comprehensive Income
background image
BM&FBOVESPA S.A. - Bolsa de Valores, Mercadorias e Futuros
Quarters and nine month periods ended September 30, 2010 and 2009
(In thousands of reais)
(A free translation of the original in Portuguese)
BM&FBOVESPA
Consolidated
2010
2009
Accumulated
3
rd
Quarter
Accumulated
3
rd
Quarter
Accumulated
Net income for the year
293.208
882.643
246.795
661.949
Valuation Adjustments
(82.102)
(143.128)
(46.450)
48.374
Mark to market of financial assets available for sale
(16.370)
(77.396)
(46.450)
48.374
Exchange variation on foreign investment in associate
(95.592)
(95.592)
-
-
Hedge of net investment abroad
27.992
27.992
-
-
Reflex effect on comprehensive income of affiliate
1.868
1.868
-
-
Total comprehensive income for the period
211.106
739.515
200.345
710.323
Attributable to:
211.106
739.515
200.345
710.323
BM&FBOVESPA shareholders
210.879
739.966
199.316
709.250
Non-controlling interest
227
(451)
1.029
1.073
Presented items are net of tax effect, when aplicable
Statement of Comprehensive Income
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BM&FBOVESPA S.A. - Bolsa de Valores, Mercadorias e Futuros
Statement of Changes in Shareholders' Equity
Quarter and nine months periods ended September 30, 2010
(In thousands of reais)
Revaluation
Statutory
Treasury
Aditional
Capital
reserve
reserves
shares
Valuation
Dividends
Retained
Non-controlling
Total
Notes
Capital
reserve
(Note 16(c))
(Note 16(d))
(Note 16(b))
Adjustments
Proposed
earnings
Total
interest
Equity
At December 31, 2009
2.540.239
16.452.624
24.131
-
(185.880)
-
139.376
-
18.970.490
15.892
18.986.382
Realization of revaluation reserve - subsidiaries
-
-
(435)
-
-
-
-
-
(435)
-
(435)
Repurchase of shares
-
-
-
-
(75.125)
-
-
-
(75.125)
-
(75.125)
Disposal of treasury shares - exercised options
19
-
-
-
-
19.452
-
-
(11.583)
7.869
-
7.869
Recognition of stock option plan
19
-
44.141
-
-
-
-
-
-
44.141
-
44.141
Mark to market adjustment
-
-
-
-
-
48.374
-
-
48.374
-
48.374
Exchange variation on foreign investment
-
-
-
-
-
-
-
-
-
-
-
Hedge of net investment
-
-
-
-
-
-
-
-
-
-
-
Participation in other on comprehensive income of affiliate
-
-
-
-
-
-
(139.376)
-
(139.376)
-
(139.376)
Net income for the period
-
-
-
-
-
-
-
660.876
660.876
520
661.396
Appropriation of net income:
Dividends
16(f)
-
-
-
-
-
-
-
(33.500)
(33.500)
-
(33.500)
Interest on own capital
16(f)
-
-
-
-
-
-
-
(253.500)
(253.500)
-
(253.500)
At September 30, 2010
2.540.239
16.496.765
23.696
-
(241.553)
48.374
-
362.293
19.229.814
16.412
19.246.226
Atributable to shareholders of the parent
Revenue reserves
background image
BM&FBOVESPA S.A. - Bolsa de Valores, Mercadorias e Futuros
Statement of Changes in Shareholders' Equity
Quarter and nine months periods ended September 30, 2010
(In thousands of reais)
Revaluation
Statutory
Treasury
Aditional
Capital
reserve
reserves
shares
Valuation
Dividends
Retained
Non-controlling
Total
Notes
Capital
reserve
(Note 16(c))
(Note 16(d))
(Note 16(b))
Adjustments
Proposed
earnings
Total
interest
Equity
At December 31, 2009
2.540.239
16.492.260
23.551
403.191
(230.102)
77.396
20.000
-
19.326.535
16.356
19.342.891
Realization of revaluation reserve - subsidiaries
-
-
(435)
-
-
-
-
-
(435)
-
(435)
Repurchase of shares
-
-
-
-
(187.763)
-
-
-
(187.763)
-
(187.763)
Disposal of treasury shares - exercised options
19
-
(15.382)
-
-
27.851
-
-
12.469
-
12.469
Recognition of stock option plan
19
-
21.500
-
-
-
-
-
-
21.500
-
21.500
Mark to market adjustment
-
-
-
-
-
(77.396)
-
-
(77.396)
-
(77.396)
Exchange variation on foreign investment
-
-
-
-
-
(95.592)
-
-
(95.592)
-
(95.592)
Hedge of net investment
-
-
-
-
-
27.992
-
-
27.992
-
27.992
Participation in other on comprehensive income of affiliate
-
-
-
-
-
1.868
-
-
1.868
-
1.868
Dividend proposed approval
16 (f)
(20.000)
(20.000)
(20.000)
Effect of impairment reversal , net of tax
-
-
-
-
-
-
-
460.610
460.610
-
460.610
Restatement of reserves by reversal of AFS devaluation reserves
-
174.229
-
286.381
-
-
-
(460.610)
-
-
-
Net income for the period
-
-
-
-
-
-
-
883.094
883.094
(451)
882.643
Appropriation of net income:
Dividends
16(f)
-
-
-
(248.000)
-
-
-
(198.600)
(446.600)
-
(446.600)
Interest on own capital
16(f)
-
-
-
-
-
-
-
(272.000)
(272.000)
-
(272.000)
At September 30, 2010
2.540.239
16.672.607
23.116
441.572
(390.014)
(65.732)
-
412.494
19.634.282
15.905
19.650.187
At June 30, 2010
2.540.239
16.495.215
23.261
155.191
(209.549)
16.370
-
363.113
19.383.840
15.678
19.399.518
Realization of revaluation reserve - subsidiaries
-
-
(145)
-
-
-
-
-
(145)
-
(145)
Repurchase of shares
-
-
-
-
(187.763)
-
-
-
(187.763)
-
(187.763)
Disposal of treasury shares - exercised options
19
-
(2.326)
-
-
7.298
-
-
-
4.972
-
4.972
Recognition of stock option plan
19
-
5.489
-
-
-
-
-
-
5.489
-
5.489
Mark to market adjustment
-
-
-
-
-
(16.370)
-
-
(16.370)
-
(16.370)
Exchange variation on foreign investment
-
-
-
-
-
(95.592)
-
-
(95.592)
-
(95.592)
Hedge of net investment
-
-
-
-
-
27.992
-
-
27.992
-
27.992
Participation in other on comprehensive income of affiliate
-
-
-
-
-
1.868
-
-
1.868
-
1.868
Effect of impairment reversal , net of tax
-
-
-
-
-
-
-
460.610
460.610
-
460.610
Restatement of reserves by reversal of AFS devaluation reserves
-
174.229
-
286.381
-
-
-
(460.610)
-
-
-
Net income for the period
-
-
-
-
-
-
-
292.981
292.981
226
293.207
Appropriation of net income:
Dividends
16(f)
-
-
-
-
-
-
-
(198.600)
(198.600)
-
(198.600)
Interest on own capital
16(f)
-
-
-
-
-
-
-
(45.000)
(45.000)
-
(45.000)
At September 30, 2010
2.540.239
16.672.607
23.116
441.572
(390.014)
(65.732)
-
412.494
19.634.282
15.904
19.650.186
Revenue reserves
Atributable to shareholders of the parent
The accompanying notes are an integral part of this Financial Statements.
11
background image
BM&FBOVESPA S.A. - Bolsa de Valores, Mercadorias e Futuros
Quarters and nine month periods ended September 30, 2010 and 2009
(In thousands of reais)
(A free translation of the original in Portuguese)
BM&FBOVESPA
3
rd
Quarter
Accumulated
3
rd
Quarter
Accumulated
Cash flows from operating activities
Net income for the period
292.981
883.094
245.766
660.876
Adjustments for:
Depreciation and amortization
14.618
34.544
11.101
29.051
Profit on sale of property and equipment
-
(5)
57
379
Deferred income tax and social contribution
125.761
335.907
60.196
219.629
Equity in results of subsidiaries
(24.511)
(22.333)
(2.426)
(4.568)
Expenses related to the stock option plan
5.489
21.500
11.937
44.141
Interest expense
14.030
14.030
-
-
Others
-
-
614
(18.169)
Variation in financial investments and collateral for transactions
(92.428)
(248.346)
(92.002)
(259.375)
Variation in taxes recoverable and prepaid
(8.326)
(35.332)
5.473
(54.288)
Variation in accounts receivable
6.142
(15.507)
1.758
(6.263)
Variation in other receivables
71.554
(3.032)
(6.758)
(8.537)
Variation in prepaid expenses
(3.621)
(3.124)
(1.403)
3.110
Variation in judicial deposits
(1.604)
(5.986)
(1.959)
(6.784)
Variation in earnings and rights on securities in custody
372
1.515
(3.904)
(5.768)
Variation in suppliers
(22.304)
14.008
2.418
(9.264)
Variation in provision for taxes and contributions payable
5.436
1.284
(537)
(22.297)
Variation in provisions for income tax and social contribution
-
(886)
-
-
Varition in salaries and social charges
(3.535)
5.883
(3.807)
14.517
Variation in other liabilities
52.396
52.290
(7.144)
(86)
Variation in unearned discount
(10.349)
10.423
(9.585)
9.800
Variation in provision for contingencies
1.483
5.474
1.050
2.968
Net cash provided by operating activities
423.584
1.045.401
210.845
589.072
Cash flows from investing activities
Receipt on sale of property and equipment
-
412
95
900
Payment for purchase of property and equipment
(12.835)
(74.089)
(22.607)
(49.787)
Dividends received
(1.075.119)
(1.075.119)
-
-
Receipt on sale of assets held for sale
6.677
13.540
1.812
6.026
Capital increase in subsidiaries
-
-
7.901
8.619
Variation in other investments
(688)
(2.650)
(565)
(1.872)
Variation in software and projects
(31.298)
(64.338)
(7.701)
(18.233)
Net cash (used in) provided by investing activities
(1.113.263)
(1.202.244)
(21.065)
(54.347)
Cash flows from financing activities
Disposal of treasury shares - stock options exercised
4.973
12.469
2.105
19.452
Repurchase of shares
(187.763)
(187.763)
-
(75.125)
Variation in financing
(1.355)
(6.476)
(2.329)
10.038
Debt issued
1.069.406
1.069.406
-
-
Redemption of preferred shares
-
-
-
(2.293)
Payment of dividends and interest on own capital
(244.696)
(736.784)
(175.130)
(478.386)
Net cash used in financing activities
640.565
150.852
(175.354)
(526.314)
Net increase in cash and cash equivalents
(49.115)
(5.991)
14.426
8.411
Cash and cash equivalents at the beginning of the period
89.870
46.746
34.906
40.921
Cash and cash equivalents at the end of the period
40.755
40.755
49.332
49.332
Statement of Cash Flows
2010
2009
The accompanying notes are an integral part of this Financial Statements.
9
background image
BM&FBOVESPA S.A. - Bolsa de Valores, Mercadorias e Futuros
Statement of Cash Flows
Quarters and nine month periods ended September 30, 2010 and 2009
(In thousands of reais)
(A free translation of the original in Portuguese)
Consolidated
3
rd
Quarter
Accumulated
3
rd
Quarter
Accumulated
Cash flows from operating activities
Net income for the period
293.208
882.643
246.795
661.949
Adjustments for:
Depreciation and amortization
15.067
35.893
11.546
30.384
Profit on sale of property and equipment
-
(5)
57
379
Deferred income tax and social contribution
125.761
335.907
60.196
219.629
Equity in results of subsidiaries
(23.142)
(23.142)
-
-
Expenses related to the stock option plan
5.489
21.500
11.937
44.141
Interest expense
14.030
14.030
-
-
Others
-
-
949
(18.672)
Variation in financial investments and collateral for transactions
(46.507)
(265.429)
(120.124)
(400.133)
Variation in taxes recoverable and prepaid
(8.579)
(35.927)
5.473
(54.287)
Variation in accounts receivable
5.770
(15.605)
1.561
(6.727)
Variation in other receivables
73.527
(628)
(3.769)
(11.174)
Variation in prepaid expenses
(3.556)
(3.183)
(1.383)
3.054
Variation in judicial deposits
(1.604)
(5.109)
(1.953)
(6.818)
Variation in earnings and rights on securities in custody
372
1.515
(3.904)
(5.768)
Variation in suppliers
(22.325)
13.910
2.380
(9.264)
Variation in provision for taxes and contributions payable
5.401
1.360
(529)
(22.308)
Variation in provisions for income tax and social contribution
940
(1.571)
561
(394)
Varition in salaries and social charges
(3.564)
6.040
(3.892)
14.647
Variation in other liabilities
2.425
63.012
14.842
139.388
Variation in unearned discount
(10.349)
10.423
(9.585)
9.800
Variation in provision for contingencies
1.542
5.642
(338)
1.716
Net cash provided by operating activities
423.906
1.041.276
210.820
589.542
Cash flows from investing activities
Receipt on sale of property and equipment
(122)
290
95
900
Payment for purchase of property and equipment
(12.840)
(74.391)
(22.690)
(49.898)
Dividends received
(1.075.119)
(1.075.119)
-
-
Receipt on sale of assets held for sale
6.677
13.540
1.812
6.026
Capital increase in subsidiaries
-
-
7.901
8.619
Variation in other investments
-
-
-
-
Variation in software and projects
(31.298)
(64.338)
(7.698)
(18.222)
Net cash (used in) provided by investing activities
(1.112.702)
(1.200.018)
(20.580)
(52.575)
Cash flows from financing activities
Disposal of treasury shares - stock options exercised
4.973
12.470
2.105
19.452
Repurchase of shares
(187.763)
(187.763)
-
(75.125)
Variation in financing
(1.355)
(6.476)
(2.329)
10.038
Debt issued
1.069.406
1.069.406
-
-
Redemption of preferred shares
-
-
-
(2.293)
Payment of dividends and interest on own capital
(244.696)
(736.784)
(175.130)
(478.386)
Net cash used in financing activities
640.565
150.853
(175.354)
(526.314)
Net increase in cash and cash equivalents
(48.231)
(7.889)
14.886
10.653
Cash and cash equivalents at the beginning of the year
91.121
50.779
35.994
40.227
Cash and cash equivalents at the end of the year
42.890
42.890
50.880
50.880
2009
2010
The accompanying notes are an integral part of this Financial Statements.
10
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BM&FBOVESPA S.A. - Bolsa de Valores, Mercadorias e Futuros
Statement of Value Added
Quarters and nine month periods ended September 30, 2010 and 2009
(In thousands of reais)
(A free translation of the original in Portuguese)
BM&FBOVESPA
3
rd
Quarter
Accumulated
3
rd
Quarter
Accumulated
1 - Revenues
536.126
1.564.680
418.132
1.181.557
Trading and/or settlement system
461.615
1.331.769
351.036
979.464
Other operating revenues
74.511
232.911
67.096
202.093
2 ­ Goods and services acquired from third parties
72.318
185.144
51.950
147.655
Operating expenses (a)
72.318
185.144
51.950
147.655
3 ­ Gross value added (1-2)
463.808
1.379.536
366.182
1.033.902
4 - Retentions
14.618
34.544
11.101
29.051
Depreciation and amortization
14.618
34.544
11.101
29.051
5 ­ Net value added produced by the company (3-4)
449.190
1.344.992
355.081
1.004.851
6 ­ Value added transferred from others
116.502
258.046
61.101
190.868
Equity in results of subsidiaries
24.511
22.333
2.426
4.568
Financial income
91.991
235.713
58.675
186.300
7 ­ Total value added to be distributed (5+6)
565.692
1.603.038
416.182
1.195.719
8 - Distribution of Value Added
565.692
1.603.038
416.182
1.195.719
Personnel and related charges
68.779
191.840
61.939
212.334
Board and committee members' compensation
1.507
4.385
1.184
3.885
Income tax, taxes and contributions (b)
184.322
501.883
103.596
305.103
Interest and rents (c)
18.103
21.836
3.697
13.521
Interest on own capital and dividends
243.600
470.600
175.000
287.000
Retained earnings of the period
49.381
412.494
70.766
373.876
(b) Including: taxes, PIS, COFINS, ISS and income tax and social contribution (current and deferred).
(c) Including: rents and financial expenses.
(a) Operating expenses (excludes personnel, Board and committee members' compensation, depreciation, rents and taxes).
2010
2009
The accompanying notes are an integral part of this Financial Statements.
11
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BM&FBOVESPA S.A. - Bolsa de Valores, Mercadorias e Futuros
Statement of Value Added
Quarters and nine month periods ended September 30, 2010 and 2009
(In thousands of reais)
(A free translation of the original in Portuguese)
Consolidated
3
rd
Quarter
Accumulated
3
rd
Quarter
Accumulated
1 - Revenues
541.609
1.579.255
426.505
1.199.004
Trading and/or settlement system
461.614
1.331.769
351.036
979.464
Other operating revenues
79.995
247.486
75.469
219.540
2 ­ Goods and services acquired from third parties
74.247
194.904
54.836
156.132
Operating expenses (a)
74.247
194.904
54.836
156.132
3 ­ Gross value added (1-2)
467.362
1.384.351
371.669
1.042.872
4 - Retentions
15.067
35.893
11.546
30.384
Depreciation and amortization
15.067
35.893
11.546
30.384
5 ­ Net value added produced by the company (3-4)
452.295
1.348.458
360.123
1.012.488
6 ­ Value added transferred from others
123.712
280.125
65.870
208.152
Equity in results of subsidiaries
23.142
23.142
-
-
Financial income
100.570
256.983
65.870
208.152
7 ­ Total value added to be distributed (5+6)
576.007
1.628.583
425.993
1.220.640
8 - Distribution of Value Added
576.007
1.628.583
425.993
1.220.640
Personnel and related charges
71.687
199.776
63.883
215.682
Board and committee members' compensation
1.507
4.385
1.184
3.885
Income tax, taxes and contributions (b)
185.742
505.402
104.745
308.682
Interest and rents (c)
23.863
36.377
9.386
30.442
Interest on own capital and dividends
243.600
470.600
175.000
287.000
Net income for the period retained
49.608
412.043
71.795
374.949
(b) Including: taxes, PIS, COFINS, ISS and income tax and social contribution (current and deferred).
(c) Including: rents and financial expenses.
(a) Operating expenses (excludes personnel, Board and committee members' compensation, depreciation, rents and taxes).
2010
2009
The accompanying notes are an integral part of this Financial Statements.
12
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13
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)

1
Operations

BM&FBOVESPA S.A. - Bolsa de Valores, Mercadorias e Futuros (BM&FBOVESPA) is a
publicly traded corporation with headquarters in São Paulo, whose main objective is to invest in
companies engaged in the following activities:
Management of organized markets of marketable securities, providing for the organization,
performance and development of free and open markets for the negotiation of any types of
securities or contracts, that have as reference or objective financial assets, indices, indicators,
rates, goods, currencies, energy, transportation, commodities and other assets or rights directly
or indirectly related to such assets, for spot or future delivery;
Maintenance of proper environments or systems for carrying out purchases, sales, auctions and
special operations involving marketable securities, securities, rights and assets, in the stock
exchange market and in the organized over-the-counter market;
Rendering services of registration, offset and settlement, both physical and financial, through
an internal agency or a company especially incorporated for this purpose, assuming or not the
position of central counterparty and guarantor of the definite settlement, under the terms of the
legislation in force and its own regulations;
Rendering services of central depository and fungible and custody of non-fungible goods,
marketable securities and any other physical and financial assets;
Providing services of standardization, classification, analysis, quotations, statistics,
professional education, preparation of studies, publications, information, libraries and software
on matters of interest to the BM&FBOVESPA and the participants of markets directly or
indirectly managed by it;
Providing technical, administrative and managerial support for market development, as well as
carrying out educational, promotional and publishing activities related to its objective and to
the markets managed by it;
Performance of other similar or correlated activities explicitly authorized by the Brazilian
Securities Commission (CVM); and
Investment in the capital of other companies or associations, headquartered in Brazil or abroad,
as a partner, shareholder or member pursuant to the regulations in force.

BM&FBOVESPA organizes, develops and provides for the operation of free and open securities
markets, for spot and future delivery. Its activities are organized through its trading systems and
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
14
clearinghouses and include transactions with securities, interbank foreign exchange and securities
under custody in the Special System for Settlement and Custody (Selic) markets.

BM&FBOVESPA develops technology solutions and maintains high performance systems,
providing its customers with security, agility, innovation and cost efficiency. The success of its
activities depends on the ongoing improvement, enhancement and integration of its trading and
settlement platforms and its capacity to develop and license leading-edge technologies required for
the proper performance of its operations.

Its subsidiary Bolsa Brasileira de Mercadorias is involved in the registration and settlement of
spot, forward and options transactions involving commodities, assets and services for physical
delivery, as well as the securities representing these products, in the primary and secondary
markets.

With the objective of responding to the needs of clients and the specific requirements of its
markets, its wholly-owned subsidiary Banco BM&F de Serviços de Liquidação e Custódia S.A.
provides its members and its clearinghouses with a centralized custody service for the assets
pledged as collateral for transactions.

BM&F USA Inc., a wholly-owned subsidiary located in the city of New York (USA), with a
representative office in Shanghai (China) and a wholly-owned subsidiary in London
(BM&FBOVESPA (UK) Ltd. ­ constituted in the last quarter of 2009), represents
BM&FBOVESPA abroad through relationships with other exchanges and regulatory agents, as
well as assisting in the procurement of new clients.


2
Preparation and Presentation of the quarterly review

This quarterly review was approved by the Board of Directors of BM&FBOVESPA on February,
17, 2011.

The present quarterly are being restated and differ from those originally disclosed on November
09, 2010 due to better understanding of issues related to the adoption of new accounting practices
(CPCs), mainly by the procedure adopted on the the transfer of the shares of CME Group
Financial from financial assets ­ available for sale to Investments. The income statement of the
period/ year, earnings per share and dividends proposed were not affected.

The quarterly financial information - ITR were prepared and have been presented in accordance
with accounting practices adopted in Brazil, in compliance with the provisions contained in the
Brazilian Corporate Law, and embody the changes introduced through the Law 11,638/07 and
11,941/09, complemented by new pronouncements, interpretations and guidelines of Accounting
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
15
Pronouncements Committee ­ CPC, approved by resolutions of the Federal Accounting Council ­
CFC and rules of Brazilian Securities Commission ­ CVM. Additionally the quarterly inforations
contemplate the disclosure requirements established by CPC 21 ­ Intermediate Statements, as well
as other information deemed relevant.

As stated by CVM Deliberation 609/09 (CPC 37 ­ Initial Adoption of international accounting
standards) and CVM 610/09 (CPC 43 ­ Initial Adoption of Technical Pronouncements), the
international standards and/or the changes in the accounting practices were implemented
retroactively as from January 1, 2009



The reconciliation of shareholders' equity and net income for the period between the accounting
practices previously adopted and the new accounting practices is presented below:




BM&F BOVESPA and Consolidated
Shareholders´ equity reconciliation
01/01/2009
09/30/2009
12/31/2009
Shareholders´ equity disclosed in accordance with previous
accounting practices (CPC 1 to 14)
19,291,724
19,642,050
19,709,749
Impairment of investment in CME Group (a)
(460,610)
(460,610)
(460,610)
Mark to market adjustment of shares of CME Group classified as
available for sale (b)
-
48,374
77,396
Additional to the minimum mandatory dividend before the balance sheet
date (c)
200,001
- 20,000
Contribution to constitution of BSM previously treated as investment
(20,000)
(20,000)
(20.000)
19.026.454
19,209,814
19,326,535
Non-controlling shareholders´ interest (e)
15,339
16,412
16,356
Shareholders´ equity disclosed in accordance with new accounting
practices
19,026,454
19,226,226
19,342,891


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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
16
BM&FBOVESPA and
Consolidated
Net income reconciliation
09/30/2010
12/31/2009
Net income disclosed in accordance with previous accounting
practices (CPC 01 to 14)
660,876
881,050
Non-controling shareholders (e)
1,073
1,019
Net income disclosed in accordance with new accounting
practices
661,949
882,069
(a)
In accordance with the standards in effect until December 31, 2009, the investment in CME Group
was recorded at historical cost in Permanent Assets, in accordance with CPC 14, and the value of
the investment was analyzed for impairment considering the discounted cash flow (Value in Use),
as determined by CPC 1 for investments recorded on the cost method.

With the adoption of CPC 38 in 2010, the investment was reclassified to financial instruments, in
the category of Financial Assets Available for Sale, and adjusted to fair value, based on the
quotation in the stock market.

Upon classification in this category, the impairment analysis is performed by the comparison of
the market value of the shares with the cost of acquisition(CPC 38), and an indicator of
impairment is the significant or prolonged decline in the market price of the shares.

As a result, an impairment loss on the investment in CME Group, in the amount of R$ 460,610,
net of tax, was recognized in Shareholders´ equity at December 31, 2008, the "as of" adoption date
for the new accounting standards effective in 2010, given the significant decline in the market
price of the shares of CME Group in the fourth quarter of 2008. Thus, the new cost basis for the
investment was established at R$ 578,306 at December 31, 2008.

With the acquisition of an additional equity stake in the CME Group, in july 2010, the investment
is now valued by the equity method and the portion relating to the impairment, net of tax,
amounting to R$460,610 was reversed against equity, establishing a new cost basis for
investments classified according to CPC 18.
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
17
1.
During the year 2009, based on the new level of cost of the investment, CME Group shares, as a
result of the change in fair value, generated a positive effect of marking to market in the amount of
R$77,396, net of tax.

As from July 2010, concomitantly with the increase in participation in CME Group from 1.78% to
5%, the investment is valued on the equity method, with the results recorded in the quarter ended
September 30, 2010.
(c)
In According to the Technical Interpretation ICPC08 - Accounting for Proposed Dividend, the
portion that exceeds the mandatory minimum dividend (including interest on own capital) must be
maintained in equity, in a specific account until final determination of shareholders
(d)
The revision of the new useful lives for depreciation purposes according to Technical
Interpretation ICPC 10, was performed for all fixed assets with the results recorded prospectively
as from January 1, 2010.

The economic lives of assets were evaluated by specialists and in line with guidelines of the
Brazilian Institute of Evaluations and Expert Engineering (IBAPE) and ASA (American Society
of Appraisers).

The table below presents the changes in the annual rates of depreciation of fixed assets:

Previous
Current
Buildings
4%
2,5%
Furniture and fixtures
10%
10%
Machinery and equipment
10%
10%
Computer equipment
20%
25%
Facilities
10%
10%
Telephone equipment
10%
20%
Other
10% to 20%
11% to 33%
(e)
Other CPCs implemented in 2010 that did not generate impacts in the balance sheet and income
statement include:
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
18
i. Segment Reporting (CPC 22) - The BM&FBOVESPA is disclosing the consolidated quarterly
financial information by operating segment (Note 24);


ii. Presentation of the Financial Statements (CPC 26) - The interest of non-controlling
shareholders was reclassified to shareholders´ equity;
iii. Earnings per Share (CPC 41) - Earnings per share is now presented based on the net income of
the period and the weighted average outstanding shares during the year, excluding treasury shares.
The diluted earnings per share is also disclosed, taking into consideration the potential impact of
the stock options that may dilute the net income by increasing the number of shares.
(f)
Application of new accounting practices:

The interim financial information has been presented in accordance with CPC 21,.
BM&FBOVESPA prepared the reconciliation of the quarterly information previously presented
with the new accounting practices.

The information of prior periods, which has been restated for comparison purposes, was prepared
using the same accounting practices adopted in the preparation of the financial information of
September 30, 2010.
(g)
Exemptions to the retrospective application

In preparing the financial information in accordance with the new accounting practices adopted in
Brazil, the BM&FBOVESPA applied the mandatory material exceptions and certain optional
exemptions in relation to the retrospective full application of the new accounting practices
outlined below, following the prerogatives of CPC 37.

The main exemptions listed in CPC 37 are not applicable to the BM&FBOVESPA considering the
reasons listed below:
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
19
(i)
Business combinations - BM&FBOVESPA has applied the business
combinations exemption described in CPC 37 and therefore did not restate the
business combinations that occurred before January 1, 2009, the transition date;
(ii)
Deemed cost of fixed assets - BM&FBOVESPA has opted to use the values
recorded under previous accounting practices and did not use the exemption of
deemed cost on the transition date;
(iii)
Leases - BM&FBOVESPA chose to reassess the contracts within the scope of
IFRIC 4, considering the facts and circumstances of the transition date. No
impacts were identified as the previously adopted practices were already
aligned;
(iv)
Share-Based Payment - The Brazilian accounting practices are already aligned
(v)
Assets and liabilities of subsidiaries - The initial adoption of new practices were
implemented concurrently and consistently in all subsidiaries.

.
(h)
Exceptions to the retrospective application

The Company applied the main mandatory exceptions in the retrospective application:


The estimates used in preparing these financial statements as of December 31, 2009 are consistent
with estimates made on the same dates in accordance with accounting practices previously
adopted in Brazil.

The other mandatory exceptions did not apply because there were no significant differences with
regard to accounting practices previously adopted in Brazil.


Principles for the consolidation of the Financial Statements
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
20
The consolidated financial statements include the balances of BM&FBOVESPA and its
subsidiaries, as well as the special purpose entities, comprising the exclusive investment funds
(CVM Instruction 408/2004), as presented below:
Stake %
Subsidiaries and controlled entities
Banco BM&F de Liquidação e Custódia S.A. ("Banco BM&F")
100.00
Bolsa Brasileira de Mercadorias
50.12
Bolsa de Valores do Rio de Janeiro ­ BVRJ ("BVRJ")
86.09
BM&F USA Inc.
100.00

Exclusive investment funds
Supremo Renda Fixa ­ Fundo de Investimento em Cotas de Fundos de Investimento
Bradesco Fundo de Investimento Multimercado Letters

In preparing the consolidated financial statements, the balances of assets and liabilities of the
subsidiaries and the exclusive investment funds were consolidated, except for those investing in
retail funds' shares. The shareholders' equity of the subsidiaries and the balances of assets and
liabilities resulting from transactions carried out between the consolidated subsidiaries and
consolidated entities are eliminated, and minority interests in the shareholders' equity and
statement of income are separately disclosed.

3
Significant Accounting Practices
a.
Revenue Recognition
Revenues from the Trading and/or settlement system are recognized upon the completion of
the transactions or the provision of service, under the accrual method of accounting. The
amounts received as annual fees, as in the cases of listing of securities and certain contracts of
sale of market information, are recognized pro rata on monthly over the contractual term.
b.
Cash and cash equivalents

The balances of cash and cash equivalents for cash flow statement purposes comprise cash and
bank deposits.


c.
Financial instruments
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
21
(i) Classification and calculation

The BM&FBOVESPA classifies its financial assets in the following categories: recorded at
market value through profit or loss, loans and receivables, held to maturity and available for
sale. The classification depends on the purpose for which the financial assets were acquired.
Management determines the classification of the financial assets when they are first recorded.
Financial assets recorded at fair value through profit or loss
The financial assets recorded at fair value through profit or loss are financial assets held for
active and frequent trading or assets designated by the entity, when first recorded, as
measurable at fair value through profit or loss. Derivatives are also classified as held for
trading and accordingly, are recorded in this category. The assets in this category held for
trading are classified as current assets. Gains or losses arising from the fair value variations of
financial assets recorded at fair value through profit or loss are recorded in the statement of
income in "financial results" for the period in which they occur.
Loans and receivables
These comprise loans granted and receivables which are non-derivative financial assets with
fixed or determinable payments, not quoted in an active market. Loans and receivables are
included in current assets, except for those with maturity of more than 12 months after the
balance sheet date (which are classified as non-current assets). The Company's loans and
receivables comprise trade accounts receivable and other accounts receivable. Loans and
receivables are recorded at amortized cost, based on the effective interest rate method.
Available-for-sale financial assets
Available-for-sale financial assets are non-derivatives which are classified in this category or
not classified in any other. They are included in non-current assets, unless the management
intends to sell the investment within 12 months subsequent to the balance sheet date.
Available-for-sale financial assets are recorded at fair value. Interest on available-for-sale
securities, calculated based on the effective interest rate method, is recognized in the statement
of income as financial income. The amount relating to the fair value variation is recorded in
shareholders' equity, in the Carrying value adjustments account, and is realized in net income
when the asset is sold or becomes impaired.
Fair value
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
22
Fair values of investments with public quotations are based on current market prices. For
financial assets without an active market or public quotation, the BM&FBOVESPA determines
fair value through valuation techniques, such as option pricing models.
The BM&FBOVESPA evaluates, at the balance sheet date, if there is objective evidence that a
financial asset or a group of financial assets is deteriorated.
(ii)
Derivative
instruments and hedge activities
Initially, the derivatives are recognized at fair value on the date on which the derivative
agreement is signed and, subsequently, they are recalculated at their fair value, with the fair
value variations recorded in income, except when the derivative is recorded as a cash flow
hedge.
(iii) Hedge of net investments

Any gain or loss on the hedging instrument related to the effective portion of the hedge is
recognized in equity. The gain or loss related to the ineffective portion is recognized
immediately in income as "other gains (losses), net".

Gains and losses accumulated in equity are included in the income statement when the foreign
operation is partially disposed of or sold.


d.
Accounts receivable, other receivables and allowance for doubtful accounts
Accounts receivable are the amounts receivable for services in the normal course of activities
of the BM&FBOVESPA. If the deadline for receipt is equivalent to one year or less (or
another period that meets the normal cycle of BM&FBOVESPA), the accounts receivable are
classified as current assets. Otherwise, they are presented as noncurrent assets.

Accounts receivable are initially recognized at fair value less provision for doubtful debts
(PDD). In practice they are usually recognized at the invoice amount, adjusted for a
provision if necessary.
e.
Prepaid expenses

Prepaid expenses mainly recognize amounts related to software maintenance contracts and
insurance premiums, which are amortized based on the terms of the contracts in force.
f.
Investments
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
23
Investments in entities and subsidiaries are recorded and evaluated based on the equity
accounting method, with the related income (or expense) recognized in income for the year as
operating income (or expense). The accounting practices of the subsidiaries are consistent
with the practices adopted by the BM&FBOVESPA.
In the case of exchange variance of investments abroad, which have their functional currency
different from that of the BM&FBOVESPA, the changes in the value of the investment that
arise solely from the exchange variance are recorded in "Asset Valuation Adjustment" in the
BM&FBOVESPA´s equity, and are only recognized in the income statement when the
investment is sold or written off. To calculate the equity method, the unrealized gains on
transactions with subsidiaries and associated companies are eliminated.



g.
Intangible assets

An intangible asset is an identifiable non-monetary asset without physical substance, such as
goodwill.
Goodwill
Goodwill or negative goodwill on the acquisition of an investment is calculated as the
difference between the purchase amount and book value of the shareholders' equity of the
company acquired. Goodwill or negative goodwill is subdivided into two categories: (i)
market value adjustment, either upward or downward, of assets, comprising the difference
between the book value of the company acquired and the fair value of assets and liabilities and
(ii) future profitability, comprising the difference between the fair value of assets and
liabilities and the purchase amount.

The portion corresponding to the market value adjustment of assets was allocated to the
corresponding acquired/merged assets. The upward market value adjustment is amortized as
the corresponding assets are realized.

The portion based on estimated future profitability is recorded in the intangible group and until
December 31, 2008, was amortized over a 10-year period, to the extent of and in proportion to
the projected results on which it was based. The portion based on the expectation of future
profitability is no longer amortized as from January 1, 2009.
Software and projects
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
24
Software licenses acquired are capitalized and amortized over their estimated useful life, at the
rates described in Note 9.

Costs of software development or maintenance are expensed as incurred. Expenditures directly
associated with identifiable and unique software, controlled by the Company and which will
probably generate economic benefits greater than the costs for more than one year, are
recognized as intangible assets. Direct expenditures include remuneration of the software
development team.
Expenditures for development of software recognized as assets are amortized using the
straight-line method over their useful lives, at the rates described in Note 9.
h.
Step Acquisition of affiliate
The cost of an affiliate acquired in steps is measured by the total amount paid in each
transaction.

The gains or losses previously recognized in comprehensive income, while classified as
available for sale, are reversed against the investment account to recompose the cost.

Goodwill is calculated at each step of acquisition as the difference between the acquisition cost
and the fair value of net assets in proportion to the interest acquired
.
The total book value of the investment is tested for identification of potential reduction in the
recoverable value, by comparing the carrying value with its recoverable amount (proceeds
from sale, net of sale cost or value in use, whichever is greater) when the requirements of the
CPC 38 indicate that the investment can be affected, in other words, indicate some loss of
reduction to its recoverable amount.



i.
Property and equipment
Recorded at cost of acquisition or construction. Depreciation is calculated on the straight-line
method and takes into consideration the useful economic life of the assets, at the rates listed.
Subsequent costs are included in the carrying amount or recognized as a separate asset, as
appropriate, only when it is probable that future economic benefits will flow to the item and
that the cost of the item can be measured reliably. All other repairs and maintenance are
recorded in income, when incurred.
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
25
j.
Contingent assets and liabilities and legal obligations

The recognition, measurement, and disclosure of contingent assets and liabilities and legal
obligations comply with the criteria defined in CPC 25.
Contingent assets - These are not recorded, except when management has full control
over their realization or when there are secured guarantees or favorable decisions to which
no further appeals are applicable, such that the gain is almost certain. Contingent assets
with realization considered probable, where applicable, are only disclosed in the financial
statements.
Contingent liabilities - These are recognized based on a number of factors including: the
opinion of legal advisors; the nature of the lawsuits; similarity to precedents; the
complexity of the proceedings; and prior court decisions. They are recognized whenever
the loss is evaluated as probable, since this would give rise to a probable outflow of
resources for the settlement of the obligations, and the sums involved are measurable with
sufficient reliability. The contingent liabilities classified as possible losses are not
recorded and are only disclosed in the notes to the financial statements, and those
classified as remote are neither recognized nor disclosed.
Legal obligations ­ These result from tax lawsuits in which the Company is discussing
the validity or constitutionality of certain taxes and charges. These are fully recognized in
the financial statements, regardless of the assessment of their probability of success.
k.
Judicial deposits
Judicial deposits are monetarily restated and presented in non-current assets.


l.
Other assets and liabilities
These are stated at their known and realizable/settlement amounts plus, where applicable,
related earnings and charges and monetary and/or exchange rate variations up to the balance
sheet date.
m.
Impairment of assets

Property, plant and equipment and other non-current assets, including goodwill and intangible
assets, are reviewed annually to identify evidence of unrecoverable losses, and also whenever
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
26
events or changes in the circumstances indicate that the book value may not be recoverable.
In this case, the recoverable value is calculated to verify if there is any loss. Loss is recognized
at the amount by which the book value of the asset exceeds its recoverable value, which is the
higher between the net sales price and the value in use of an asset. For evaluation purposes,
assets are grouped at the lowest level for which there are separately identifiable cash flows.
n.
Leases

Leases of property and equipment in which the Company substantially assumes all ownership
risks and benefits are classified as financial leases. These financial leases are recorded as a
financed purchase, recognizing at the beginning of the lease a property and equipment item
and a financing liability (lease). Property and equipment acquired in finance leases are
depreciated at the rates defined in Note 8.
A lease in which a significant portion of the ownership risks and benefits remains with the
lessor is classified as an operating lease. Operating lease payments (net of all incentives
received from the lessor) are charged directly to results.
o.
Provisions
Provisions are recognized when the Company has a legal or informal present obligation as a
result of past events, a cash outflow to settle the obligation is probable and a reliable estimate
of the amount can be made.
p.
Employee benefits
(i)
Pension obligations
The BM&FBOVESPA has no defined benefit plans. The Company offers its employees a
defined contribution plan and pays contributions on contractual or voluntary bases. Once the
contributions have been made, the BM&FBOVESPA has no obligations related to additional
payments. The regular contributions comprise net periodic costs for the period in which they
are payable and, therefore, are included in the personnel costs.
(ii) Share-based remuneration (stock options)
The BM&FBOVESPA offers to its employees and executives share-based remuneration plans,
to be settled in BM&FBOVESPA stock, according to which the BM&FBOVESPA receives
services in consideration for stock options. The fair value of options granted related to
services to be provided is recognized as an expense during the period in which the right is
obtained, i.e., the period during which specific vesting conditions must be met. On the date of
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
27
the balance sheet, the BM&FBOVESPA revises the estimated number of options which will
vest and subsequently, recognizes the impact of the change on initial estimates, if any, in the
statement of income, with a contra-entry to the capital reserve in shareholders' equity on a
prospective basis.
(iii) Profit sharing
The provision is recorded as an accrual basis in accordance with the remuneration policy of
the BM&FBOVESPA

BM&FBOVESPA recognizes a liability and an expense for profit sharing based on a formula
that takes into account the profit attributable to shareholders after certain adjustments.
BM&FBOVESPA recognizes a provision where contractually obliged or where there is a past
practice that has created a constructive obligation.
q.
Financing and Borrowings
Financing is initially recognized at fair value, upon receipt of the funds, net of transaction costs.
Subsequently, the financing is presented at amortized cost, that is, plus charges and interest in
proportion to the period incurred ("pro rata temporis").
Any difference between the funds raised
(net of transaction costs) and the redemption value is recognized in the income statement over the
period of the loans, using the effective interest rate method.

r.
Foreign currency translation

Transactions in foreign currency are translated into reais using the exchange rates effective on
the transaction dates. Balance sheet account balances are translated at the exchange rate in
effect on the balance sheet date. Foreign exchange gains and losses resulting from the
settlement of these transactions and from the translation of monetary assets and liabilities
denominated in foreign currency are recognized in the income statement.

The items included in the quarterly information for each of the consolidated companies of
BM&FBOVESPA are measured using the currency of the primary economic environment in
which the company operates ("functional currency"). The quarterly information is presented in
Brazilian reais, which is the functional currency of BM&FBOVESPA and also the
presentation currency of the consolidated.

The transactions with foreign currencies are translated into the functional currency, using the
exchange rates prevailing on the transaction dates or evaluation dates. The foreign exchange
gains and losses arising from the settlement of these transactions and of the translation, at the
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
28
exchange rates at the end of period, of assets and liabilities in foreign currencies, are
recognized in the income statement, except when deferred in equity as part of a hedge of net
investment abroad.

The exchange gains and losses on non-monetary financial assets related to shares of CME
Group, classified as available for sale, are included in equity.
s.
Taxes and contributions

BM&FBOVESPA is a for-profit business corporation and accordingly its income is subject to
certain taxes and other contributions which are listed below.

Provisions for income tax, social contribution and other taxes are calculated at the rates
presented below:
Income tax
15.00%
Additional income tax
10.00%
CSLL
9.00%
PIS
1.65%
COFINS
7.60%

Banco BM&F de Serviços de Liquidação e Custódia S.A. calculates the contributions to PIS
and to COFINS at the rates of 0.65% and 4%, respectively, and CSLL at 15%.

The subsidiaries Bolsa Brasileira de Mercadorias and BVRJ are not-for-profit entities and
calculate the contribution to PIS at the rate of 1% on payroll.
t.
Deferred income tax and social contribution
Deferred taxes are calculated on income tax and social contribution losses and the temporary
differences between the tax calculation bases of assets and liabilities and the respective book
values in the financial statements. The currently defined tax rates of 25% for income tax and
9% for social contribution are used to calculate deferred tax assets and liabilities.

Deferred tax assets are recognized to the extent that it is probable sufficient future taxable
profit will be available to be offset by temporary differences and/or tax losses, considering
projections of future income prepared based on internal assumptions and future economic
scenarios which may, accordingly, undergo change.
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
29
Deferred tax liabilities are recognized in relation to all taxable temporary differences, that is,
differences that will result in taxable amounts in determining taxable profit (tax loss) of future
periods when the carrying amount of the asset or liability is recovered or settled.
u.
Net income per share

For purposes of disclosure of earnings per share, the basic earnings per share is calculated by
dividing the net profit attributable to shareholders of the parent by the average number of
outstanding during the period. The diluted earnings per share is calculated similarly, except
that the quantities of outstanding shares are adjusted to reflect the additional outstanding
shares with potentially dilutive effects, due to the stock option plan (Note 16g), had been
issued during the respective periods.

v.
Dividends distribution
The dividend distribution to shareholders of the BM&FBOVEPA is recognized as a liability in
the quarterly information at the end of the period, based on the BM&FBOVESPA´s bylaws.
Any amount above the minimum required is only recognized when approved by shareholders
General Meeting.
w.
Segment Report presentation
The report by operating segments is presented in a consistent manner with the internal report
provided to the management, which is responsible for the main operational and strategic
decisions of the Company.

x.
Critical accounting estimates and judgments
b)
Equity method of accounting
c)

d)
BM&FBOVESPA applies the equity method for its investments when it has the ability to
exercise significant influence over the operations and financial policies of the investee. The
judgment of BM&FBOVESPA regarding the level of influence over the investment takes into
account key factors such as the percentage of interest, representation on the Board of
Directors, participation in defining policies and business settings and material transactions
between the companies.

e)
Impairment
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
30

Annually, BM&FBOVESPA performs tests of impairment, specifically related to goodwill
and fixed assets, according to the accounting policy described in note 3.
c)
Classification of financial instruments
BM&FBOVESPA classifies the financial assets in the categories of (i) measured at fair value
through profit or loss and (ii) available for sale. The classification depends on the purpose for
which the financial assets were acquired. Management determines the classification of
financial assets at initial recognition. The record of financial assets, starting with its original
classification, is described in Note 3.c.
d)
Stockoption planBM&FBOVESPA offers a stock option plan to its employees and
executives. The fair value of these options is recognized as expense over the period in which
the right is acquired. Management reviews the estimated amount of options that will achieve
the conditions for vesting and subsequently recognizes the impact of changes in initial
estimates, if any, in the statement of income, with an offset to the reserve account in equity,
as shown in note 3.o.

4
Cash and Cash Equivalents and Financial Investments
a.
Cash and Cash Equivalents
For the purposes of the statement of cash flows, the following balances are being considered
as cash and cash equivalents:
BM&FBOVESPA
Details
09/30/2010
12/31/2009
Banks - deposits in domestic currency
113
62
Banks - deposits in foreign currency
40,642
46,684
Total
40,755
46,476




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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
31

Consolidated
Details
09/30/2010
12/31/2009
Banks - deposits in domestic currency
647
160
Banks - deposits in foreign currency
42,243
50,619
Total
42,890
50,779

b.
Financial Investments
The breakdown of financial investments by nature and time to maturity is as follows:
BM&FBOVESPA
Details
Without
maturity
Up to 3
months
More than 3
months and
up to 12
months
More than 12
months and
up to 5 years
More than 5
years
09/30/2010
12/31/2009
Measured at fair value through profit and loss (3)
Financial investment funds (1)
1,414,948
­
­
­ ­ 1,414,948
1,518,855
Securities purchased under
resell agreements
­ 1,203
1,509,638
­ ­ 1,510,841 1,015,439
Financial Treasury Bills
­
­ 263
414,664
­ 414,927 383,353
Shares
13,725
­
­
­
­ 13,725 11,604
Other investments
7,457
­ 612
615
­ 8,684 11,079
1,436,130 1,203
1,510,513
415,279 - 3,363,125 2,940,330
Available for sale
CME Group shares
­
­
­
­
­ - 695,572
BSM shares
20,000
­
­
­
­ 20,000 20,000
Total financial investments
1,456,130 1,203
1,510,513
415,279 - 3,383,125 3,655,902
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
32
Short term
2,947,846 3,257,365
Long term
435,279 398,537
CONSOLIDATED
Details
Without
maturity
Up to 3
months
More than 3
months and
up to 12
months
More than
12 months
and up to 5
years
More than 5
years
09/30/2010
12/31/2009
Measured at fair value through profit and loss (3)
Financial investment funds (1)
601,082
­
­
­ ­ 601,082 977,428
Securities purchased under
resell agreements
­ 686,522
1,528,559
­ ­ 2,215,081 1,488,578
Financial Treasury Bills
­ 5,740
26,150
693,021 1,052 725,963 644,407
National Treasury Bills
­
­ 36,303
12,325
­ 48,628 40,333
Shares
15,306
­
­
­
­ 15,306 13,126
Other investments
7,457 10,061
612
1,119
­ 19,249 21,560
623,845 702,323
1,591,624
706,465 1,052 3,625,309 3,185,432
Available for sale
CME Group shares (2)
­
­
­
­
­ - 695,572
BSM shares
20,000
­
­
­
­ 20,000 20,000
Total financial investments
643,845 702,323
1,591,624
706,465 1,052 3,645,309 3,901,004
Short term
2,917,792 3,295,356
Long term
727,517 605,648
(1)
Investments in funds that invest in quotas of other financial investment funds, the portfolios of
which mainly comprise investments in federal government bonds, securities purchased under
resell agreements and bank certificates of deposit and have the CDI as their profitability
benchmark. The balances presented in the table of BM&FBOVESPA also include the exclusive
investment funds which were consolidated in the financial statements according to the nature of
the portfolio.
The net assets of the exclusive investment funds included in the process of consolidation of the
quarterly information are: (i) Supremo Renda Fixa
- FICFI - R$ 345,881 at September 30, 2010
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
33
(R$ 364,792 at December 31, 2009), (ii) Bradesco FI Multimercado Letters - R$ 467,985 at
September 30, 2010 (R$ 176,550 at December 31, 2009).

The main investment funds that were not consolidated are detailed in the table below:
BM&FBOVESPA and
Consolidated
Fund
Bank
Details
09/30/2010 12/31/2009
FIC Megainvest
Santander Exclusive fund that invests in
quotas of retail funds;
481,380
642,020
FIC Referenciado DI
Federal
Bradesco Retail fund that invests in quotas
of other investment funds;
119,455
335,177
(2)
As from July 2010, the shares of CME Group started to be recorded on the equity method
(Note 7).
(3)
The government bonds are held in custody at the Special System for Settlement and Custody
(SELIC), the quotas of investment funds are held in custody with their respective managers
and the shares are in the custody of BM&FBOVESPA's Equity and Corporate Debt
Clearinghouse.
Classification

Considering the nature and objective of the BM&FBOVESPA and its financial investments, these
are classified as financial assets recorded at fair value through profit or loss, designated by
management when they are first recorded.

Fair value

The fair value of the main financial investments is calculated as follows:

Quotas of investment funds ­ fair value calculated based on the amount of the quota determined
on the last business day prior to the balance sheet date, as disclosed by the corresponding
Manager.

Federal government securities ­ calculated based on the amounts and prices disclosed by the
Brazilian Association of Financial and Capital Market Institutions (ANBIMA) or, when these are
unavailable, on the price defined by management which best reflects the sales price, determined
based on information gathered from other institutions.


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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
34



Derivative financial instruments

The derivative financial instruments comprise One-Day Interbank Deposit Futures Contracts (DI1)
and are stated at their market values. These contracts are included in the exclusive fund portfolios
which were consolidated (Note 2) and are used to cover the fixed interest rate exposure, swapping
the interest rate to floating (CDI). Even though these derivatives are designed to provide
protection, hedge accounting is not adopted.

The net result from derivative transactions and the related financial instrument refers to the short
position contracts for future interest rates, with market value (R$ 415) on September 30, 2010 and
(R$ 396) on December 31,2009


The DI1 contracts have the same maturity dates as the National Treasury Notes (fixed interest
rate) to which they are related.
Financial risk management policy
The BM&FBOVESPA investment
policy
for the cash balance that favors alternatives with very
low risk, which translates into significant proportion of federal government securities in its
portfolio, being purchased directly, through repurchase agreements backed by government bonds
and also through exclusive and non-exclusive funds. Thus, in general, the BM&FBOVESPA has
on principle directing most of its applications in conservative financial assets, high liquidity and
with sovereign risk, whose overall performance is tied to the Selic rate / CDI
Sensitivity analysis
The table below presents a summary of the financial instruments' exposure classified by market
risk factors at September 30, 2010 and December 31, 2009:
Risk Factors (Consolidated)
09/30/2010
12/31/2009
Risk factor
Risk
Percentage
Percentage
CDI
Falling CDI
98.68%
98.03%
Fixed interest rate
Rising fixed rate
1.37%
1.27%
USD
Falling dollar
0.26%
0.50%
Gold price
Falling gold
0.21%
0.20%
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
35
100.00%
100.00%

Interest Rate Risk

This risk arises from the possibility that fluctuations in future interest rates for the corresponding
maturities could affect the fair value of the Company's transactions.
Floating-rate Position
As a financial investment policy and considering the need for immediate liquidity with the least
possible impact from interest rate fluctuations, the Company maintains its financial assets and
liabilities indexed to floating interest rates. The table of Risk Factors (Consolidated) includes the
investments in CDB, securities purchased under resell agreement and quotas of retail investment
funds which use CDI/SELIC as a benchmark.
This strategy minimizes the impact on the fair value or present value arising from possible
variations in future interest rates. Accordingly, the effective impact of these fluctuations on the
fair value of financial investments is not material.
Fixed-rate Position
The BM&FBOVESPA has a portion of its financial investments bearing fixed interest rates with
results in a net exposure to fixed interest rates. However, in terms of percentage, considering the
amounts involved as presented in the table of Risk Factors (Consolidated), the effects on the
portfolio are not considered material.

Exchange rate risk
This arises from the possibility that fluctuations in the exchange rates for the acquisition of
services, product sales and the contracting of financial instruments could have an impact on the
related domestic currency amounts.

In addition to the amounts payable and receivable in foreign currencies, the Company has third-
party deposits in foreign currency to guarantee the settlement of transactions by foreign investors
and also own funds in currency abroad. At September 30, 2010 the Company's net foreign
currency exposure amounted to R$5,568 (R$16,930 at December 31, 2009). Considering the
amounts involved, as presented in percentage terms in the table of Risk Factors (Consolidated),
the effects on the portfolio are not considered material.

Inflation index and gold position
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
36
Considering the amounts and percentages involved, as detailed in the table of Risk Factors
(Consolidated), the effects on the portfolio are not considered material.
5
Accounts Receivable

The breakdown of accounts receivable is as follows:
BM&FBOVESPA
Details
09/30/2010
12/31/2009
Trading, other fees receivable
19,252 10,979
Annuity
10,653
2,719
Vendors ­ Signal broadcast
10,580 9,657
Trustee and custodial fees
12,906 10,383
Other accounts receivable
7,739 11,288
Provision for doubtful accounts
(6,581) (5,984)
Total
54,549
39,042
Consolidated
Details
09/30/2010
12/31/2009
Trading, other fees receivable
19,891 11,632
Annuity
10,653
2,719
Vendors ­ Signal broadcast
10,580 9,657
Trustee and custodial fees
12,906 10,383
Other accounts receivable
8,361 11,798
Provision for doubtful accounts
(6,581) (5,984)
Total
55,810
40,205
Of the amounts presented above, approximately 90% mature within 60 days.

6
Other Receivables
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
37
Other receivables comprise the following:
BM&FBOVESPA
09/30/2010
12/31/2009
Current
Advances to employees (1)
3,979
959
Amounts receivable - related parties (note 17) 10,809
13,859
Receivable Dividends
-
3,333
Warehouse
1,520
1,293
Other
1,286
2,154
Total
17,594
21,598
Non-current
Other
801
626
Total
801
626


Consolidated
09/30/2010
12/31/2009
Current
Advances to employees (1)
4,065
970
Restricted deposits
1,006
1,776
Amounts receivable - related parties (note 17) 9,456
11,674
Receivable Dividends
-
3,333
Warehouse
1,520
1,293
Other
1,999
3,610
Total
18,046
22,656
Non-Current
Brokers in liquidation (2)
2,200 4,000
Other
801 626
Total
3,001
4,626
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
38
(1)
Represented mainly in anticipation of the first tranche of the 13th salary made on June 30,
2010.
(2)
Balance of accounts receivable from brokers in liquidation, which considers the equity as
collateral of secured debtor




























7
Investments

a.
Investments in subsidiaries

Investments in subsidiaries comprise the following:
BM&F BOVESPA
background image
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
39
Subsidiaries and controlled
entities
Adjusted
shareholders'
equity
Total number
of common
shares
Adjusted net
income % Stake
Investment
09/30/2010
Equity in
income
Accumulated
2010
Equity in
income
Accumulated
2009
Subsidiaries
Banco BM&F de Liquidação
e Custódia S.A.
43,072
24,000
3.117
100
43,072 3,116 3,059
Bolsa Brasileira de
Mercadorias
15,641
405
(347)
50,12
7,839 (174)
205
Bolsa de Valores do Rio de
Janeiro -BVRJ
58,255
115
(1,496)
86,09
50,152 (1,287)
3,492
BM&F USA Inc.
1,134
1,000
(2,464)
100
1,134 (2,464)
(2,188)
CME Group, Inc. (1)
33,715,935
66,793,000
401,974
5,08
2,274,060
23,142
-
Total
2,376,257 22,333 4,568


Summary of main financial information of subsidiaries and affiliates:
Description
Banco
BM&F
Bolsa Brasileira
de Mercadorias
Bolsa de Valores
do Rio de
Janeiro-BVRJ
BM&F
USA Inc
CME Group
Inc
Assets
238,147
17,175
60,094
1,134
57.071.668
Liabilities
195,075
1,534
1,839
-
23.240.866
Revenue
5,963
5,047
4,905
-
3.795.855


Changes in Investments:
Investments
Banco BM&F
Bolsa
Brasileira de
Mercadorias
Bolsa de
Valores do
Rio de Janeiro
BM&F USA
Inc
CME Group
Inc
Total
At December 31, 2009
39,995 8,013
51,875
948
-
100,791
background image
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
40
Acquisition of shares (1)
-
-
-
-
1,653,425
1,653,425
Equity in results
3,117 (174)
(1,288)
(2,464) 23,142
22,333
Exchange variation (2)
-
-
-
-
(66,385)
(66,385)
Equity in other
comprehensive income of
affiliate
- -
- -
1,868
1,868
Realization of the
revaluation reserve
-
-
(435)
-
-
(435)
Capital increase
-
- -
2,650 -
2,650
Dividends received
-
- -
- (6,677)
(6,677)
At September 30, 2010
43,072 7,839 50,152 1,134
1,605,373
1,707,570

(1)
As from July 2010, with the acquisition of a 3.2% interest in CME Group for the amount
of R$ 1,075,119, increasing the ownership interest from 1.78% to 5%, BM&FBOVESPA
began to recognize the investment on the equity method, because management
understands that the qualitative aspects of the relationship between the two companies
indicate the existence of significant influence of BM&FBOVESPA on CME Group.
The
investment includes R$ 647,710 related mainly to intangible assets with indefinite useful
lives raised on the acquisition of the additional portion. The fair value of the investment
at September 30, 2010, based on the market quotation of the shares, is R$1,498,299.
(2)
As from July 2010, BM&FBOVESPA executed a hedge of part of the exchange rate risk
through the designation of a non-derivative financial instrument (debt issued abroad), as
shown in note 13.
b.
Investment Property

Represented by leased properties owned by the subsidiary BVRJ - Bolsa de Valores do Rio de
Janeiro, presented in the group of Investment Properties and depreciated, according to the
estimated useful lives of the asset, in 50 years.
background image
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
41
8
Property and Equipment
The breakdown of property and equipment is as follows:
BM&FBOVESPA
Details
09/30/2009
12/31/2009
Cost
Depreciation
Net
Net
Buildings
185,815 (99,939)
85,876
86,055
Furniture and fixtures
37,862 (25,485)
12,377
12,500
Apparatus and equipment
77,441 (68,339)
9,102
8,650
Computer-related equipment
185,047 (90,584)
94,463
60,468
Land
21,591 -
21,591
21,591
Facilities
38,346 (11,924)
26,422
19,023
Telephone system
4,119 (2,412)
1,707
1,906
Other
70,062 (42,332)
27,730
26,784
Construction in progress
3,818
-
3,818
-
Total
624,101 (341,015)
283,086
236,941
Consolidated
Details
09/30/2009
12/31/2009
Cost
Depreciation
Net
Net
Buildings
87,999 (100,642)
87,357
87,601
Furniture and fixtures
38,381 (25,850)
12,531
12,684
Apparatus and equipment
77,606 (68,426)
9,180
8,741
Computer-related equipment
185,782 (91,269)
94,513
60,535
Land
21,744 -
21,744
21,743
background image
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
42
Facilities
39,376 (12,437)
26,939
19,618
Telephone system
4,119 (2,412)
1,707
1,906
Other
72,473 (42,393)
30,080
29,111
Construction in progress
3,818 -
3,818
-
Total
631,298 (343,429)
287,869
241,939
9
Intangible Assets

Goodwill
The goodwill on the acquisition of Bovespa Holding was calculated as the difference between
the market value of the Bovespa Holding shares that were merged (purchase amount), in the
amount of R$17,942,090, and the book value of the Bovespa Holding net equity at December
31, 2007, in the amount of R$1,543,799, adjusted by the following events which occurred
between December 31, 2007 and the date of the merger: (i) capital increases in the amount of
R$37,028, (ii) payment of interest on own capital in the amount of R$23,443 and (iii)
adjustment of the amount of proposed dividends for 2007 in the amount of R$205.

The goodwill in the amount of R$16,384,911 was subdivided into (i) downward net market
value adjustment of assets, comprising the difference between the book value of the company
acquired and the fair value of the assets and liabilities in the amount of (R$3,819) and (ii)
future profitability, comprising the difference between the fair value of assets and liabilities
and the purchase amount of R$16,388,730, under the terms of CVM Instructions 247 and
285. The portion corresponding to the market value adjustment of assets was allocated to the
corresponding assets acquired and subsequently merged.

The remaining portion of goodwill in the amount of R$16,388,730 is based on estimated
future income and supported by an economic and financial appraisal report of the investment.
Up to December 31, 2008, goodwill was amortized in the amount of R$324,421 considering
a period of 10 years, calculated based on the extent of and in proportion to the estimated
results on which the goodwill was based.

In accordance with the pronouncements issued by CPC in 2008, the portion based on the
expectation of future profitability is no longer amortized as from January 1, 2009. However,
it is subject annually to impairment testing, pursuant to Technical Pronouncement CPC 01
("value in use" method).
background image
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
43
The goodwill based on expected future income was tested for impairment in 2009. The test,
based on an appraisal report prepared by specialists, did not reveal the need for any
adjustments to the goodwill amount. In the period ended September 30, 2009, Management
found no indicators arising from internal or external sources that could indicate changes the
conclusions reached in December 2009 that recognition of impairment of goodwill was not
necessary.

Software and projects
The balance comprises costs for the acquisition and development of software and systems in
the net amount of R$59,660 (R$20,361 at December 31, 2009), with amortization rates of
20% to 33% per annum, and expenditures in the amount of R$61,613 (R$43,631 at
December 31, 2009) for the implementation and development in progress of new systems and
software.
10
Earnings and Rights on Securities in Custody

These comprise dividends and interest on capital received on behalf of the owners of securities
from listed companies, which will be transferred to the custody agents and subsequently to their
clients, who are the owners of the shares.
11
Provision for Taxes and Contributions Payable

At September 30 and December 31, 2009, the breakdown of this balance was as follows:






BM&FBOVESPA
Details
09/30/2010
12/31/2009
Withholding taxes and contributions
payable
4,872
7,783
PIS/Cofins
18,540
14,471
ISS (Municipal service tax)
2,276
2,150
background image
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
44
Total
25,688
24,404

Consolidated
Details
09/30/2010
12/31/2009
Withholding taxes and contributions
payable
5,013
7,838
PIS/Cofins
18,651
14,596
ISS (Municipal service tax)
2,312
2,182
Total
25,976
24,616
12
Redemption of Preferred Shares to be Settled

At September 30 2010, the remaining balance amounts to R$1,839 (R$1,839 at December 31,
2009) and mainly refers to amounts payable to foreign investors.
13
Issuance of Debt Abroad and Financing

On July 16, 2010 BM&FBOVESPA concluded the issuance of senior unsecured notes, with face
value of US$ 612 million, priced at 99.635% of par, resulting in an inflow of US$ 609 million
(equivalent at the time to R$ 1,075,323). The interest rate is 5.50% pa, payable half-yearly in
January and July, and with the principal amount due on July 16, 2020. The effective rate was
5.64% pa, which includes the issue discount and other costs related to issuance. The updated
balance of the loan on September 30, 2010 is R$ 1,041,025. The proceeds from the offering were
used to purchase shares of CME Group at that date.

The notes have an early partial or total redemption clause, at the Company´s option, at the greater
of: (i) principal plus interest accrued to date and (ii) interest accrued to date plus the present value
of the remaining cash flows, discounted by the rate applicable to U.S. Treasuries for the remaining
term plus 0.40% pa (40 basis points per annum).

As from the issue date, exchange rate effects on the principal amount of the debt will be
considered as a hedging instrument, in order to protect exchange rate risk on the portion equal to
US$ 612 million (notional) of the investment in CME Group Inc. (Note 7). Accordingly, the
Company adopted net investment hedge accounting in accordance with the provisions of CPC 38,
preparing a formal designation of the hedge documenting: (i) objective of the hedge, (ii) type of
hedge, (iii) the nature of the risk to be hedged, (iv) identification of the hedged item, (v)
background image
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
45
identification of the hedging instrument, (vi) test of the correlation of the hedge and the hedged
item (retrospective effectiveness test) and (vii) the prospective effectiveness test.

For the retrospective effectiveness test, the company adopts the method of the ratio of
accumulated gains or losses on the debt to the gains or losses on net investment (Dollar Offset
method on a cumulative and spot basis). For prospective tests, the Company uses stress scenarios
applied to the hedged variable. The application of such effectiveness tests revealed no
ineffectiveness on September 30, 2010

The fair value of debt at September 30, 2010 is R$ 1,109,399

Additionally, the Company has financial leases of computer equipment. The balance at September
30, 2010 is R$ 5,314 (R$ 11,790 at December 31, 2009), maturing in April 2011.
14
Other liabilities
BM&FBOVESPA
Details
09/30/2010
12/31/2009
Custody agents
4,214 4,108
Payable for repurchase of shares
52,954
-
Finep - Carbon credits
199 281
Amounts payable - related parties (Note 17)
2,433 4,946
Third parties services
1,073 1,398
Electricity, water and telephone
636 791
Other
6,358 4,102
Total
67,867
15,626
Consolidated
Details
09/30/2010
12/31/2009
Custody agents
4,214 4,108
Payable for repurchase of shares
52,954
-
Finep - Carbon credits
199 281
Demand deposits (1)
49,222 35,468
Liabilities for securities purchased under resell
agreements (1)
142,070
144,513
background image
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
46
Amounts payable - related parties (Note 17)
3
3,264
Outsourced services
1,225 1,398
Electricity, water and telephone
636 791
Other
7,335 5,072
Total
257,858
194,895
(1)
Balances related to the transactions of Banco BM&F.
15
Contingent Assets and Liabilities
a.
Contingent assets
BM&FBOVESPA has no contingent assets recognized in its balance sheet, and at present no
lawsuits which are expected to give rise to future gains.
b.
Contingent liabilities
BM&FBOVESPA and its subsidiaries are defendants
in a number of labor, tax and civil lawsuits
which have arisen during their normal operating activities.

. The lawsuits are classified by their probability of loss (probable, possible or remote), based on an
evaluation by the BM&FBOVESPA and its legal advisors, using parameters such as previous
judgments and the history of loss in similar suits.

The proceedings in which the loss is evaluated as probable mainly comprise the following:
Labor claims mainly filed by employees of outsourced service providers, on account of
alleged noncompliance with labor legislation. There are also claims filed by former BVRJ
employees, specifically as regards to noncompliance with rules related to collective
bargaining agreements;
Civil proceedings, mainly consisting of matters pertaining to civil liability for losses and
damages.
Tax claims are mainly related to the incidence of PIS and Cofins on (i) the
BM&FBOVESPA's revenues and (ii) receipt of interest on equity.
c.
Legal obligations
background image
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
47
These are almost entirely proceedings in which BM&FBOVESPA seeks exemption from social
security additional contributions on payroll and payments to self-employed professionals, as well
as discussions over the legality of Labor Accident Insurance (SAT).
A provision for the amounts related to legal obligations is recorded in full.


d.
Changes in balances
The activity in provisions for contingencies and legal obligations may be summarized as follows:
BM&FBOVESPA
Civil
Labor
Legal
obligations
Tax
Total
At December 31, 2009
3,671
4,108
28,608
11,823
48,210
New provisions
64
1,382
2,093
-
3,539
Reversals
(25)
(463)
-
-
(488)
BM&FBOVESPA
Civil
Labor
Legal
obligations
Tax
Total
At december 31, 2009
3,671
4,108
28,608
11,823
48,210
New provisions
64
1,382
2,093
-
3,539
Reversals
(25)
(463)
-
-
(488)
Reassessment of contingent risks
51
-
-
-
51
Price-level restatement
269
420
972
711
2,372
At September 30, 2010
4,030
5,447
31,673
12,534
53,684
Consolidated
Civil
Labor
Legal
obligations
Tax
Total
At december 31, 2009
4,227
4,458
28,608
12,154
49,447
New provisions
105
1,492
2,093
-
3,690
Reversals
(36)
(490)
-
-
(526)
Reassessment of contingent risks
51
-
342
(342)
51
Price-level restatement
276
457
972
722
2,427
At September 30, 2010
4,623
5,917
32,015
12,534
55,089
background image
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
48
Reassessment of contingent risks
51
-
-
-
51
Price-level restatement
269
420
972
711
2,372
At September 30,2010
4,030
5,447
31,673
12,534
53,684
Consolidated
Civil
Labor
Legal
obligations
Tax
Total
At December 31, 2009
4,227
4,458
28,608
12,154
49,447
New provisions
105
1,492
2,093
-
3,690
Reversals
(36)
(490)
-
-
(526)
Reassessment of contingent risks
51
-
342
(342)
51
Price-level restatement
276
457
972
722
2,427
At December 31 ,2010
4,623
5,917
32,015
12,534
55,089
According to the characteristic of provisions there is no cash disbursement forecast.
e.
Possible losses
The proceedings classified as a "possible loss" are so classified as a result of uncertainties
surrounding their outcome. They are lawsuits for which jurisprudence has not yet been defined or
which still depend on verification and analysis of the facts, or even involve specific aspects that
reduce the chances of loss.

BM&FBOVESPA and its subsidiaries have tax, civil and labor lawsuits involving risks of loss
classified by management as possible, based on the evaluation of their legal advisors, for which no
provision has been recorded. These proceedings comprise mainly the following:
Labor proceedings, mainly claims filed by employees of outsourced service providers, on
account of alleged noncompliance with labor legislation. The amounts related to the
lawsuits classified as possible at September 30, 2010 are R$27,839 in the parent company
(are (R$21,534 at December 31, 2009) and R$29,652 on a consolidated basis (R$23,047 at
December 31, 2009);
Civil proceedings mainly consist of matters pertaining to civil liability for losses and
damages. The total amount involved in the lawsuits classified as possible at September 30,
2010 is R$74,751 in the parent company and on a consolidated basis (R$64,474 at
December 31, 2009).
The majority of this amount is related to a possibility of the Company being required to deliver
shares of BM&FBOVESPA (surviving company of the merger with BM&F S.A.), in an amount
background image
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
49
corresponding to the shares resulting from the conversion of the shares of a commodities broker in
the former BM&F, or indemnify the corresponding amount, if the cancellation of the shares in the
former BM&F is found to be illegal, as alleged by a commodities broker in bankruptcy;
The tax proceedings of BM&FBOVESPA and its subsidiaries mainly involve a dispute
over the classification of exchanges as subject to the payment of social contributions.
Most of these amounts are related to two lawsuits filed by BM&FBOVESPA against the
Federal Government arguing that the Company was not subject to the payment of social
contributions prior to the 1999 fiscal year. The amount involved in the aforementioned
proceedings as of September 30, 2010 is R$44,360 (R$42,393 at December 31, 2009).
The total amount involved in tax proceedings classified as possible is R$68,489 in the
parent company and on a consolidated basis (R$65,388 at December 31, 2009).

f.
Remote losses

BM&FBOVESPA, as successor of the former BOVESPA, and the subsidiary BVRJ are
defendants in an action for material damages and pain and suffering filed by Mr. Naji Robert
Nahas, Selecta Participações e Serviços SC Ltda. and Cobrasol - Companhia Brasileira de Óleos e
Derivados, on the grounds of alleged losses in the stock market sustained in June 1989. The
amount attributed to the cause by the plaintiffs is R$10 billion. In relation to the material damages
and pain and suffering claimed, the plaintiffs ask that BVRJ and BM&FBOVESPA be sentenced
in proportion to their responsibilities. On December 18, 2009, a sentence was published in which
the claims made by the plaintiffs were considered completely unfounded. The authors appealed to
the Court, still waiting for a trial. The BM&FBOVESPA and its legal advisors consider that the
chances of loss in this lawsuit are remote.
g.
Judicial deposits
BM&FBOVESPA
Consolidated
Details
09/30/2010
12/31/2009
09/30/2010
12/31/2009
Legal obligations 31,673
28,563
32,011 28,563
Tax
53,123
50,673
53,123 51,005
Civil
2,067
1,949
2,067 1,949
Labor
2,612
2,304
2,803 3,378
Total
89,475
83,489
90,004
84,895

background image
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
50
Of the total judicial deposits, R$32,460 (R$30,731 at December 31, 2009) relates to one of the
processes involving a dispute over the classification of exchanges as subject to the payment of
social contributions, classified as possible by management, as described in "e" above. Given the
existence of judicial deposits related to tax processes classified as of possible loss, the amount of
tax contingencies and legal obligations is lower than the total deposits related to tax claims.
h.
Law 11,941/09
In November 2009, the BM&FBOVESPA enrolled in the Tax Recovery Program, instituted by
Law 11,941/09 and Provisional Measure (MP) 470/09, aimed at cash payment of the amount of
R$ 2,365, related to a portion of the amount disputed in the COFINS court case, and the amount is
deposited in escrow and constituted as probable liability contingency. The value of R$ 2,151 will
be converted to government revenue and R$214 will be recorded in favor of the Company,
representing a discount of 45% of arrears interest, as permitted by those laws. The provision
remains in effect until the approval of the request to cancel part of the application of the lawsuit,
because it is a condition for further discharge of the debt pursuant to the Tax Recovery Program.

16
Shareholders' equity
a.
Capital
BM&FBOVESPA's capital is R$2,540,239, comprising 2,044,014,295 nominative common
shares with voting rights and no par value, of which 1,995,455,795 outstanding ordinary shares at
September 30, 2010 (2,002,813,266 ordinary shares on September 30, 2009).
BM&FBOVESPA is authorized to increase its capital up to the limit of 2,500,000,000 (two
billion, five hundred million) common shares, through a resolution of the Board, without
amending the bylaws.

b.
Treasury Shares
Share buyback program

In a meeting held on August 12, 2010, the Board of Directors approved a new Share Buyback
Program, aiming to maximize value creation for shareholders through an efficient management of
the capital structure
.
background image
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
51
The term for the acquisition of those shares is 141 days, ending on December 31, 2010. The
maximum amount of shares to be purchased is 31,000,000 common shares, representing 1.55% of
total shares outstanding.

The shares acquired under the Share Buyback Program will be canceled or used to fulfill the
exercise of the stock options by the beneficiaries of the Stock Option Plan of the Company.

The Company purchased shares between August 18 and October 21, 2010, respecting the period
of restrictions on trading as determined by CVM Instruction 358. During this period the Company
repurchased 26,377,900 shares, representing 85.09% of the total in the program.

We present below the activity of treasury shares during the year:
Number of Shares
At December 31, 2009
39,247,983
Acquisition of Shares - Share Buyback
Program
13,930,000
Sold shares - stock option (Note 19)
(4,619,483)
At September 30, 2010
48,558,500
Average cost of treasury shares
8.032
Value of treasury shares
390,014
Market value of treasury shares
687,103

c.
Revaluation reserves
Revaluation reserves were established as a result of the revaluation of works of art in
BM&FBOVESPA and of the property of the subsidiary BVRJ on August 31, 2007, based on
independent experts' appraisal reports.
At September 30, 2010 and December 31, 2009, the breakdown of the revaluation reserve was as
follows:
BM&FBOVESPA
Realization
background image
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
52
09/30/2010
12/31/2009
method
Own assets
Works of art
8,308
8,308
Disposal
BVRJ's assets
Property
12,373
12,808
Depreciation
Land
2,435
2,435
Disposal
14,808
15,243
Total
23,116
23,551

d.
Statutory reserves
Their purpose is to form funds and safeguard mechanisms required for the adequate development
of the activities of BM&FBOVESPA, assuring the proper settlement and reimbursement of losses
arising from the intermediation of transactions carried out in its auction systems and/or registered
in any of its trading, registration, clearing and settlement systems, and from custody services.
e.
Valuation adjustments
Have the purpose of recording the effects of (i) currency translation adjustments of the investment
in the CME Group, (ii) hedge accounting on net foreign investment, (iii) equity in other
comprehensive income of an affiliate and (iv) until June 30, 2010, effects of mark-to-market
adjustments of the shares of CME Group (Note 2b).

f.
Dividends and interest on own capital

Pursuant to the bylaws, the shareholders are guaranteed interest on own capital or dividends, based
on the net income of the Company, adjusted under the terms of corporate law, at a minimum
percentage of 25%.




Interest on own capital and dividends distributed are detailed below:
Description
Deliberation
per share
(gross) (R$)
Total amount
(gross)
background image
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
53
Interest on own capital
RCA BVMF - 02/23/2010
0.014951
30,000
Interest on own capital
RCA BVMF - 03/25/2010
0.029890
60,000
Interest on own capital
RCA BVMF ­ 05/11/2010
0.068231
137,000
Interest on own capital
RCA BVMF - 08/12/2010
0.022422
45,000
Dividends
RCA BVMF - 08/12/2010
0.098957
198,600
Total deliberated on period
470,600
At the Annual General Meeting held on April 20, 2010, it was approved the proposal for payment
to shareholders in the amount of R$248,000, as a supplement to the result of dividends for the year
ended December 31, 2009.
At December 31, 2009, the Company resolved interest on own capital R$20,000 above the
minimum required, which was fully paid on January 8, 2010
g.
Earnings per share
BM&FBOVESPA
and Consolidated
Basic
2010
2009
3
rd
Quarter Accumulated
3
rd
Quarter
Accumulated
Numerator
Net income available to shareholders
292,981
883,094
245,766
660,876
Denominator
Weighted average of outstanding shares
2,003,688,557 2,003,688,557 2,002,462,000 2,002,462,000
Basic earnings per share (in R$)
0.146221
0.440734
0.122732
0.330032
BM&FBOVESPA
and Consolidated
Diluted
2010
2009
3
rd
Quarter Accumulated
3
rd
Quarter
Accumulated
Numerator
Net income available to shareholders
292,981
883,094
245,766
660,876
Denominator
Weighted average of outstanding shares, adjusted
for the effects of stock option plans
2,017,264,875 2,017,264,875

2,019,235,462 2,019,235,462
background image
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
54
Diluted earnings per share (in R$)
0.145237
0.437768
0.121712
0.327290













17
Related Party Transactions
a.
Transactions and balances with related parties
Assets /
(liabilities)
Revenue /
(expenses)
2010
2009
BM&FBOVESPA
09/30/2010
12/31/2009
3
rd
Quarter Accumulated
3
rd
Quarter Accumulated
Bolsa de Valores do Rio de Janeiro - BVRJ
Accounts payable
(2,195)
(1,893)
Contribution on membership certificates
(119)
(356)
(119)
(356)
Banco BM&F de Serviços de Liquidação e
Custódia S.A.
Cash and cash equivalents
17
9
Accounts receivable
383
543
Foreign exchange operations
962
3,549
Recovery of expenses
1,303
3,981
1,523
4,269
Bolsa Brasileira de Mercadorias
Accounts receivable
9
88
Accounts payable
(235)
(157)
Minimum contribution on membership certificates
(352)
(982)
Recovery of expenses
14
101
87
226
background image
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2010 and 2009
(All amounts in thousands of reais)
55
BM&FBOVESPA Supervisão de Mercados
Accounts receivable
467
1,257
Recovery of expenses
659
1,943
626
1,796
CME Group