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BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
The Brazilian Securities, Commodities and Futures Exchange

Quarterly Financial Report
Three-month period ended June 30, 2011

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.2.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Dear Shareholders,
We are pleased to present to you this discussion and analysis of our financial condition and
results of operations for the quarter ended June 30, 2011 (2Q11).
OPERATING PERFORMANCE
The quarter to June 2011 was marred by market uncertainty related mainly to factors as the
sovereign debt crisis in Europe, the wavering economic recovery in the United States, and the
effects of macroprudential measures the Brazilian government has taken and could still take in
an attempt to dampen the rising inflationary pressures and to curb the appreciation of the
Brazilian real against the U.S. dollar.
In particular, market uncertainty has had a negative impact on stock market performance and,
thus, on our results for the Bovespa segment, where the effects of this scenario were twofold:
one, the market prices of stocks declined, with steeper falls recorded for stocks of issuers that
derive revenues from domestic market sources; and two, a reduction in the trading activity in
the Brazilian market, as evidenced by a fall in quarterly turnover velocity
1
. As a consequence,
volumes fell a 7.1% drop on equities markets, as compared to the prior-year second quarter,
with the average daily trading value having fallen to R$6,207.1 million from R$6,682.6 million
earlier.
Despite these declines and the macroeconomic landscape, highlights within the Bovespa
segment include the number of equity offerings placed in the quarter and heightened activity by
high frequency traders.
Meanwhile, the number of contracts traded on derivatives markets comprising the BM&F
segment rose by 5.8% year-over-year to hit average daily trading volume of 2,670.2 thousand
contracts versus 2,523.4 thousand in the year-ago second quarter. The contract groups that
showed highest growth were the Real-interest rate futures contracts and U.S. dollar-
denominated interest rate futures contracts, explained primarily by different market
expectations regarding the direction of the Brazilian government monetary policy.
However, the increase in number of contracts traded within the BM&F segment was partially
counterbalanced by 1.5% decline in average revenue per contract (RPC) when compared to the
prior year second quarter, due mainly to a change in the mix of derivatives contracts more
actively traded.
Set forth below is a discussion and analysis of our operating performance.
Bovespa Segment
The average daily trading value fell 7.1% from the year-ago quarter and 7.8% quarter-over-
quarter due mainly to a fall in stock market turnover velocity and a drop in the volume of
trading in options on stocks.
1
Turnover velocity for the quarter is defined as the ratio of annualized turnover (value) of stocks traded on the cash market
over a three-month period to average market capitalization for the same period.
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.3.
Among the different markets comprising the Bovespa segment, the low point was the options
market where the average daily value traded in equity options and stock index options took a
40.0% year-over-year fall, which correlates primarily with a decline in volatility and lower
demand from retail investors who customarily account for over 50% of the average options
market volume
.
AVERAGE DAILY TRADED VALUE (BRL MILLIONS)
Market
2Q11
1Q11
2Q10
2Q11/1Q11
(%)
2Q11/2Q10
(%)
Stocks and Equity Deriv.
6,205.8 6,734.9
6,679.6
-7.9%
-7.1%
Cash market
5,857.3 6,290.7
6,166.3
-6.9%
-5.0%
Equity derivatives
348.5
444.2
513.3
-21.5%
-32.1%
Forward market
121.3
161.6
134.9
-24.9%
-10.1%
Options market (stocks / indexes)
227.2
282.6
378.4
-19.6%
-40.0%
Fixed income and other market
securities
1.3
0.5
3.0
144.3%
-58.4%
Total
6,207.1 6,735.4
6,682.6
-7.8%
-7.1%
Source: BM&FBOVESPA.
In contrast, and reflecting in heightened activity of high frequency traders, the average daily
number of trades climbed 16.8% from the year-ago-second quarter, whereas keeping a steady
line from the prior quarter.
AVERAGE DAILY NUMBER OF TRADES
Market
2Q11
1Q11
2Q10
2Q11/1Q11
(%)
2Q11/2Q10
(%)
Stocks and Equity Deriv.
503,616 500,391
431,120
0.6%
16.8%
Cash market
422,148 409,150
348,130
3.2%
21.3%
Equity derivatives
81,467
91,241
82,990
-10.7%
-1.8%
Forward market
1,277
1,433
1,485
-10.8%
-14.0%
Options market (stocks / indexes)
80,190
89,809
81,505
-10.7%
-1.6%
Fixed income and other market
securities
13
13
13
2.7%
5.5%
Total
503,629 500,404
431,133
0.6%
16.8%
Source: BM&FBOVESPA.
Average stock market capitalization
2
for the quarter to June 2011 was up 11.3% from the year-
before second quarter, mainly reflecting the R$120.2 billion seasoned offering conducted by
Brazilian oil giant Petrobras in September 2010.
2
Stock market capitalization is a measure of the size of the stock market correlated with total market capitalization of all
listed issuers, equal to stock price times the number of shares outstanding of each listed issuer (Bovespa segment) .
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.4.
Average stock exchange capitalization and Turnover velocity
Source: BM&FBOVESPA.
Based on a three-month average, turnover velocity for the quarter to June 2011 dropped to
59.7% versus 69.2% in the year-ago quarter and 62.1% in the previous quarter. This strong
decline compared to the 2Q10 is due primarily to thinner volumes traded by the different
categories of investors, particularly retail investors, whose average daily trading value went
down to R$1.3 billion from R$1.7 billion. Moreover, turnover velocity continues to be impacted
by the Petrobras offering, which contributed to a rise in market capitalization
3
, however most of
the shares in that offering are not free float, or in other words are not available for trading.
Average daily value traded by investor category
(In R$ billions)
Source: BM&FBOVESPA.
3
As adjusted to eliminate that portion of the Petrobras offering which the Brazilian government has purchased and thus is
not in the market, turnover velocity would have been two percentile points higher.
1.3
2.0
2.0
1.8
2.3
2.5
2.3
2.2
2.3
2.5
2.5
2.5
42.3%
56.4%
63.2%
66.6%
63.8%
60.9%
64.7%
69.2%
60.1%
61.8%
62.1%
59.7%
0,0%
20,0%
40,0%
60,0%
80,0%
-
1,0
2,0
3,0
4,0
2006
2007
2008
2009
2010
1H11
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
Average Market Capitalization (BRL trillions)
Turnover Velocity
2.3
2.1
2.2
2.3
2.1
1.9
1.7
2.3
2.3
2.1
1.7
1.5
1.5
1.5
1.3
0.6
0.4
0.6
0.6
0.6
0.2
0.1
0.2
0.1
0.1
2Q10
3Q10
4Q10
1Q11
2Q11
Institutional Investors
Foreign Investors
Retail
Financial Insitutions
Companies and Others
6.7
5.9
6.8
6.7
6.2
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.5.
Net flow of foreign investments into the equities markets
(In R$ billions)
Source: BM&FBOVESPA.
Foreign investments flowing into our equities markets grew nearly three times over the previous
quarter, with net inflows rising to R$1.4 billion at the end of the quarter to June 2011 from a
negative balance of R$2.6 billion at the end of the prior quarter. In addition, similarly positive
inflows directed to the equity offering market suggest that, differently from developments in
the year-ago second quarter and the quarter to March 2011, this time there have been no major
investment transfers from the secondary to the primary market. Still, these figures remained
below those that were recorded in the year-ago second quarter.
Additionally, foreign investors and local institutional investors were the categories that
accounted for the two larger quarterly shares of the overall value traded on the stock market,
with shares of 34.0% and 33.4%, respectively, followed by retail investors, with a share of 21.3%
of the total and financial institutions, with a 9.0% share.
Equity offerings placed over 2011 (until July) totaled twenty-one, more than half of them (11)
being IPOs that amassed combined proceeds of R$7.2 billion, whereas the remaining 10 follow-
on offerings raised proceeds amounting to R$9.0 billion, thereby totaling combined proceeds of
R$16.1 billion. The foreign investors accounted for 50.3% of the total amount raised in equity
offerings in the 2H11.
Equity offerings
4
(In R$ billions)
Source: BM&FBOVESPA.
4
Data on proceeds from the 2010 Petrobras offering do not include the R$74.8 billion oil reserves assignment the Brazilian
government and Petrobras have agreed in connection with the issue.
4.5
(0.1)
16.7
7.3
1.1
4.7
(0.2)
(2.7)
6.0
2.9
(2.6)
1.4
4.7
2.6
10.7
4.4
3.7
3.2
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
Total
Secondary Market
Public Offerings
4,5
5.4
15.4
55.6
7.5
23.8
11.2
7.2
4.3
8.5
15.1
14.5
26.8
22.2
63.2
9.0
2004
2005
2006
2007
2008
2009
2010*
2011
(until July)
IPO
Follow-On
8.8
13.9
30.4
70.1
34.3
46.0
74.4
16.1
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.6.
ETFs ­ Average daily trading value
(In R$ millions)
Source: BM&FBOVESPA.
There are currently eight Exchange-Traded Funds ("ETFs") listed on our stock market. Trading in
these ETFs over the second quarter hit average daily value of R$35.4 million, a 22% surge from
the year-ago quarter, mainly pushed by dealings in BOVA11, the index fund that tracks the
Bovespa Index (Ibovespa) and the most actively traded, having accounted for 87% of the
quarterly volume of trading in ETFs. In comparison with the 1Q11, the overall average daily
traded value fell 10.4% in connection with lower volumes in the cash market.
High frequency trading - HFT activity within Bovespa segment
Second quarter dealings by high frequency traders on markets comprising the Bovespa segment
hit average daily trading value of R$898.6 million and accounted for 7.4%
5
of the overall average
daily traded value for the segment. This performance reflects a 68.6% upsurge in high frequency
trading value as compared to the average for the months of November and December 2010,
when we introduced our new pricing policy for high frequency traders, as well as a 10.7% rise
from the prior quarter average. Moreover, this performance withstood the stock market
downtrend seen in the quarter further evidencing HFT has been gaining in importance for the
domestic markets. The average daily value traded in the quarter on the basis of co-location
arrangements
6
came up to R$227.9 million, which accounted for 1.8% of the overall average for
the segment and slightly over one quarter of the overall HFT volume for the quarter.
5
In calculating high frequency volume we take into account both the buy and sell sides of the trade (a division of volume by
2).
6
Co-location arrangements are typically established with high frequency traders around a direct market access connection model
we offer (co-location). Co-location is regarded as the most efficient manner of accessing a market for offering better performance
and very low latency.
24.9
28.9
28.2
32.1
39.5
35.4
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
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.7.
HFT average daily value traded by category of
investor (buy + sell sides)
HFT share of trading volume
within Bovespa segment
Source: BM&FBOVESPA
.
Securities lending
The average financial value of open positions in the quarter to June 2011 hit R$28.3 billion, a
42.0% year-over-year rise from the quarter to June 2010 and 9.8% climb from the quarter to
March 2011. This growth was connected mainly to the level of uncertainty in the market, which
increased in last months, creating favorable conditions for carrying out arbitrage transactions
and as a consequence higher demand for securities lending.
Bovespa segment ­ Securities lending
Source: BM&FBOVESPA.
BM&F Segment
Average daily trading volume for the quarter to June 2011 climbed 5.8% from the year-ago
second quarter due mainly to a 5.1% year-over-year rise in Brazilian-interest rate futures
contracts traded and a 121.1% jump in U.S. dollar-denominated interest rate contracts traded
over the quarter.
This climb in volume traded in Brazilian-interest rate contracts was driven primarily by
increased credit availability and volatility spurred by market expectations and uncertainty
relating to the Brazilian Central Bank's decisions concerning the monetary policy. In turn,
higher volumes traded in U.S. dollar-denominated interest rate contracts unveil the market
191.4
290.8
267.2
181.5
205.0
184.1
160.0
318.6
447.3
4.3%
6.1%
7.4%
532.9
814.5
898.6
0,0%
20,0%
40,0%
60,0%
80,0%
100,0%
120,0%
-
100,0
200,0
300,0
400,0
500,0
600,0
700,0
800,0
900,0
1.000,0
Nov-Dec/10
1Q11
2Q11
retail - day trading (BRL millions)
corporate - day trading (BRL millions)
fgn inv - day trading (BRL millions)
% of overall market
0,0%
4,0%
8,0%
12,0%
16,0%
20,0%
Nov-Dec/10
1Q11
2Q11
% of overall market
% of overall cash market
% of overall options market
13.6%
7.1%
7.4%
6.6
18.5
16.9
12.7
20.5
27.0
19.0
19.9
20.8
22.4
25.8
28.3
22.6
47.4
52.3
59.3
81.0
110.9
69.6
83.0
86.3
84.9
108.9
112.8
-
20,0
40,0
60,0
80,0
100,0
120,0
-
5,0
10,0
15,0
20,0
25,0
30,0
35,0
40,0
2006
2007
2008
2009
2010
1H11
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
N
u
mb
e
r

o
f

t
r
a
d
e
s
O
p
e
n

i
n
t
e
r
e
s
t
Average Open Interest (BRL billions)
Monthly Average Number of Trades (thousands)
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.8.
moves towards taking advantage of widened opportunities to bet on the U.S. dollar-
denominated domestic yield curve.
Source: BM&FBOVESPA.
However, the volumes traded in FX contracts had a 10.0% year-over-year decrease due mainly
to significant decline in time-varying volatility of the Brazilian real to U.S. dollar exchange rate,
particularly when compared to the year-ago quarter. Nonetheless, the volume of trading in FX
contracts rose 28.8% from the quarter to March 2011 primarily as a result of increased volatility.
The chart below sets forth data on volatility of the Brazilian real to U.S. dollar exchange rate
over time.
Volatility of the Brazilian real to U.S. dollar exchange rate
Source: BM&FBOVESPA.
The quarterly average RPC for BM&F segment dropped 1.5% from the prior year quarter
primarily due to
A change in the mix of derivatives contracts more actively traded, which combined a
meaningful year-over-year jump in number of trades in U.S. dollar-denominated interest rate
contracts, for which we charge lower than average fee rates (these accounted for 7.0% share
2Q11
1Q11
2Q10
2Q11/1Q11
(%)
2Q11/2Q10
(%)
BRL Interest rate contracts
1,719.8
2,127.0
1,635.7
-19.1%
5.1%
FX contracts
543.4
422.0
603.5
28.8%
-10.0%
Index-based contracts
101.4
87.7
99.3
15.6%
2.1%
USD Interest rate contracts
186.8
127.5
84.5
46.5%
121.1%
Commodities derivatives
15.2
10.3
10.1
47.7%
50.4%
Mini-sized contracts
91.2
76.7
79.5
18.9%
14.7%
OTC derivatives
12.3
14.5
10.8
-14.6%
14.8%
Total
2,670.2
2,865.8
2,523.4
-6.8%
5.8%
BM&F Segment- ADTV (thousands of contracts)
0,00%
5,00%
10,00%
15,00%
20,00%
25,00%
30,00%
35,00%
J
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J
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Vol- DOL (R$/US$) Var. Margin
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.9.
of the volume mix for the segment, as compared to 3.3% in the year-ago second quarter)
with a drop in the volume of trading in FX contracts, for which we charge higher than average
fee rates (these accounted for 20.4% share of the volume mix for the segment, as compared
to 23.9% in the prior year second quarter); and
A 23.2% year-over-year decline in quarterly average RPC per U.S. dollar-denominated
interest rate contract explained primarily by nearly 11.0% appreciation of Brazilian currency
from the year-before second quarter (as determined based on the Brazilian real to U.S. dollar
average rate over the quarters to June 2011 and 2010) and from a build-up in the volume of
trading in short-term contracts, for which we charge lower than average fee rates.
Source: BM&FBOVESPA.
The volume of trading by financial institutions and foreign investors kept a flat line when
compared to the quarter to June 2010. In turn, local institutional investors were more active
traders, having accounting for 30.9% of the overall trading volume, as compared to 26.7% in the
prior year second quarter.
BM&F Segment ­ Allocation of average daily trading volume (ADTV) by investor category
(In thousands of contracts)
Source: BM&FBOVESPA.
2Q11
1Q11
2Q10
2Q11/1Q11
(%)
2Q11/2Q10
(%)
BRL Interest rate contracts
0.930
0.843
0.905
10.3%
2.7%
FX contracts
1.847
2.016
1.838
-8.4%
0.5%
Index-based contracts
1.753
1.639
1.515
7.0%
15.7%
USD Interest rate contracts
0.893
1.102
1.163
-19.0%
-23.2%
Commodities derivatives
1.948
2.016
2.106
-3.4%
-7.5%
Mini-sized contracts
0.137
0.142
0.129
-3.5%
5.6%
OTC derivatives
1.682
1.393
1.772
20.7%
-5.1%
Total
1.127
1.040
1.145
8.4%
-1.5%
BM&F Segment - Revenue per Contract (BRL)
1,027
976
1,049
1,183
1,060
644
695
823
858
852
607
518
491
531
590
94
87
90
92
114
37
34
42
50
54
500
1.000
1.500
2.000
2.500
3.000
2Q10
3Q10
4Q10
1Q11
2Q11
Financial Institutions
Institutional Investors
Foreign Investors
Retail
Companies
Central Bank
2,670
2,523
2,428
2,616
2,866
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.10.
High frequency trading - HFT activity within BM&F segment
The volume of high frequency trading within BM&F segment hit 4.7%
7
of the overall volume for
the quarter to June 2011 with 251 thousand average daily contracts traded, as compared to
6.0% in the year-ago second quarter. This drop is explained mainly by the decline in FX market
volatility having cut down the number of overall dealings in FX contracts by 10%, reducing the
possibilities of trading by high frequency traders on this group of contracts, which typically are
most in demand by this kind of investor.
High frequency ADTV (buy and sell sides)
(In thousands of contracts)
Evolution of high frequency trading
volumes by type of contract
Source: BM&FBOVESPA
Source: BM&FBOVESPA
DISCUSSION AND ANALYSIS OF CONSOLIDATED FINANCIAL PERFORMANCE
Main line items of the Statement of Income
Revenues
Gross operating revenues of R$521.3 million for the quarter to June 30, 2011, fell 1.5% from
R$529.0 million for the year-ago second quarter due primarily to the decline in volumes traded
on markets comprising the Bovespa segment.
Revenues from trading and settlement activities in the Bovespa segment amounted to
R$240.6 million (46.1% of gross operating revenues), down 7.2% from 2Q10. The main
drivers for these results were a 7.1% year-over-year fall in the ADTV and a drop in average
trading margins for the segment, to 5.862 bps from 6.131 bps. Lower participation of traded
volumes in equity options (which generate higher margins) and volume growth in high
frequency trading, who are charged discounted fees, were the main drivers of this quarter's
lower margins. A higher number of public offering and special auctions settlements (recorded
in others) provided revenue gains to partly offset these results.
Revenues from trading and settlement activities in the BM&F segment continued to rise,
amounting to R$191.1 million (36.7% of gross operating revenues) up 3.8% from 2Q10. The
rise was driven by a 5.8% jump in ADTV that reached 2.7 million contracts, which was
partially offset by a 1.5% drop in the average RPC, attributable mainly to a greater portion of
U.S. dollar-denominated interest rate futures contracts traded, which are priced lower than
7 In calculating high frequency volume we take into account both the buy and sell side s of the trade (a division of volume by
2).
155
74
77
66
101
50
43
38
43
45
93
90
93
82
95
42
17
10
6.0%
4.9%
4.8%
3.6%
4.7%
301
207
251
208
251
2Q10
3Q10
4Q10
1Q11
2Q11
FX
Index
Mini-sized contracts
Interest Rates in BRL
% in Overall Volume
Jun/11
10.3%
Jun/11
20.8%
Jun/11
47.7%
J
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FX contracts
Index-based contracts
Mini-sized contracts
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.11.
the average BM&F contracts, and to the reduction of the FX futures volumes, which have
higher than average RPC.
Operating revenues not related to trading and settlement activities amounted to R$89.6 million
(17.2% of total gross operating revenues), a 4.7% year-over-year rise. Relevant highlights
include:
Securities lending. Revenues of R$17.2 million (3.3% of overall gross operating revenue) were
up 39.3% from the 2Q10. This increase was mainly a result of the higher volume of lending
services in connection with average open interest positions, the overall financial value of
which rose 42.0% from 2Q10.
Depository service. Revenues reached R$22.9 million (4.4% of the gross operating revenues),
a 3% increase compared to 2Q10. Revenues from central securities depository services
climbed to R$17.8 million from R$16.6 million one year earlier due mainly to increases of
8.8% in average number of custody accounts and 13.6% rise in average financial value of
assets under custody (not including the deposit and custody of ADRs and stocks held in
custody for foreign investors).
Market data sales (Vendors). Revenues reached R$16.3 million (3.1% of the overall gross
operating revenues), down 3.1% from 2Q10. This drop is attributed mainly to the lower
market data pricing policy implemented in August 2010, which reduced market data prices
for retail investors trading through online Home Broker systems by 33.3%. An 11% year-
over-year appreciation in the Brazilian Real against the U.S. dollar resulted in a drop in
revenues from foreign customers (which represent approximately 30% of this revenue line).
Operating expenses
Second quarter operating expenses totaled R$166.8 million, a 16.2% climb from the year-ago
second quarter. The main changes in line items under operating expenses are discussed below.
Personnel. Personnel expenses of R$88.2 million were up 37.0% from the year-ago quarter,
as a result mainly of a 22.9% climb in average headcount (including internalization of IT
personnel previously outsourced over the course of 2010), in line with our growth plan and a
6% increase in payroll required under our August 2010 collective bargaining agreement.
Data processing. Data processing expenses for the quarter totaled R$23.2 million, down 6.0%
from the year-ago quarter due mainly to cut down expenses with IT outsourcing on account
of the internalization of IT personnel.
Marketing and promotion. This expense line amounted to R$10.7 million, up 8.4% from the
second quarter in the prior year, as a result mainly of initiatives to bolster our financial
education programs and market popularization campaigns, in line with our strategy to
educate and attract future generation investors and increase the retail investor base.
Depreciation and amortization. Quarterly depreciation expenses of R$10.1 million dropped
12.3% year-over-year. The 2Q11 already include the allocation of the equipment
depreciation and software amortization expenses to IT projects cost where those equipments
and software have been used. Additionally, part of the depreciation and amortization
expenses recognized in the 1Q11 related to this allocation (R$6.8 million) were reverted in
the 2Q11,
otherwise depreciation and amortization expenses would have reached R$16.9 million in 2Q11
.
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.12.
Net interest income
Net interest income for the second quarter of 2011 amounted to R$70.8 million, down 6.3%
from the year-ago second quarter reflecting the increase in interest expense (to R$17.1 million
from R$2.1 million for 2Q10) driven by interest payable under our global senior notes sold in a
July 2010 cross-border offering. In turn, quarterly interest revenues climbed 13.2% year-over-
year due mainly to heightened interest rates.
Income tax and social contribution
The line item totaled R$99.6 million for the second quarter, where R$98.6 million have been
deferred as follows:
Recognition of deferred tax liabilities (income tax and social contribution on net income)
amounting to R$124.7 million, related to temporary differences from amortization of
goodwill for tax purposes, with no impact on cash flow;
Recognition of deferred tax assets amounting to R$26.1 million, related to tax losses resulting
mainly from payment of interest on shareholders' equity over the quarter and the negative
tax base.
The table below sets forth a breakdown of data on deferred income tax and social contribution.
(in R$ millions)
2Q11
(
­
) Deferred tax liabilities
-124.7
(+) Recognition of tax credits
26.1
Deferred income tax and social contribution
-98.6
EBITDA and net income
2Q11 EBITDA totaling R$313.2 million decreased 8.9% from the year-ago second quarter,
reflecting the changes in revenues and expenses previously discussed. EBITDA margin hit 67.0%
as compared to 72.3% in the second quarter one year earlier.
Net income for the quarter to June 2011 totaled R$294.2 million, down 3.8% from prior year
second quarter. This fall is likewise related to the changes in revenues and expenses discussed
above. Additionally, net income for the quarter has been positively influenced by recognition of
our share of the net profit from investment in an associate (CME Group), which we account
under the equity-method, in the amount of R$22.1 million in the second quarter. At the end of
the prior-year second quarter this line item was not in existence.
EBITDA Reconciliation
2Q11
2Q10
2Q11/2Q10
(%)
GAAP net income
294,171
305,646
-3.8%
Minority interest
19
(426)
-104.5%
Income tax and social contribution
99,593
102,473
-2.8%
Interest income, net
(70,815)
(75,536)
-6.3%
Depreciation and amortization
10,101
11,524
-12.3%
Resultado de equivalência patrimonial
(22,091) - -
Tax on dividends paid by associate (CME Group)
2,238 - -
EBITDA
313,216
343,681
-8.9%
EBITDA Margin
67.0%
72.3%
-530 bps
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.13.
Main line items of the consolidated balance sheet statement at June 30, 2011
Assets
Total assets
At June 30, 2011, we had total consolidated assets registered at R$22,564.0 million, down 0.3%
from assets totaling R$22,634.0 million at December 31, 2010.
Cash and cash equivalents and financial investments
Cash and cash equivalents plus short- and long-term financial investments totaling R$3,355.3
million accounted for 14.9% of total assets. This amount includes mainly third-party collaterals
pledged to our clearing facilities in the amount of R$1,116.3 million and R$463.0 million in
restricted funds tied to our clearing safeguard structure. Unrestricted cash and cash equivalents
available for use at end of the quarter totaled R$1,538.3 million (not including R$238.0 million in
financial resources of the subsidiaries), compared to R$1,711.7 million at December 31, 2010.
Noncurrent assets
Noncurrent assets totaled R$19,004.5 million, not including financial investments, being R$190.3
million in long-term receivables, R$2,190.0 million in investments, R$358.7 million in property
and equipment and R$16,265.6 million in intangible assets.
Intangible assets comprise primarily goodwill attributable to expected future profitability related
to the acquisition of Bovespa Holding. Goodwill was tested for impairment in December 2010.
The test yielded a valuation report prepared by a specialist firm, which found that goodwill is
appropriately stated, no adjustments to carrying value being required. Additionally,
management has not identified at this time any internal or external factors that would change
the December 2010 findings, such that absent any impairment indicators no adjustment is to be
made to the carrying value of goodwill.
Liabilities and shareholders' equity
Current liabilities
Current liabilities amounting to R$1,537.6 million accounted for 6.8% of total liabilities at the
end June 2011 and was up 8.6% from December 2010, when they accounted for 6.3% of total
liabilities. This rise is due primarily to a 12.0% increase in the volume of cash collateral pledged
by market participants, which was up to R$1,069.3 million from R$954.6 million earlier, coupled
with the balance of dividends and interest on shareholders' equity payable, which increased to
R$95.5 million from R$2.8 million in December 2010.
Noncurrent liabilities
Noncurrent liabilities at the end of the second quarter amounted to R$2,007.2 million and
consist substantially of R$945.7 million recorded under the line item "Debt issued abroad" and
R$997.2 million under deferred income tax and social contribution.
Shareholders' equity
Shareholders' equity at the end of June 2011 totaled R$19,019.2 million, down 2.1% from
December 2010 substantially comprised of capital stock of R$2,540.2 million and capital
reserves of R$16,675.7 million.
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.14.
Capex investments
Investments on the order of R$43.7 million were capitalized in the quarter to June 2011, where
R$35.4 million were invested in technology and R$8.2 million in other projects (including
projects related to assets as our facilities and equipment). Total capital expenditures at the end
of the six months to June 2011 totaled R$73.0 million and are in line with the capex budget for
2011, which contemplates capital expenditures within an interval between R$235.0 million and
R$255.0 million.
OTHER INFORMATION
Payouts
On August 9, 2011, our board of directors declared dividends amounting to R$235.3 million, for
payment to holders of record as of October 3
rd
, 2011, based on the ownership structure at the
book closure date of August 26
th
, 2011.
Share buyback program
Consistent with the share buyback program our board adopted on August 12, 2010, we have
completed the repurchase of all authorized 60 million common shares. The program ended June
30, 2011.
Moreover, in its June meeting the board approved a new share buyback program, which took
effect on July 1, 2011 and is set to end on December 31, 2011. This new program authorizes the
Company to repurchase up to 30 million shares. Accordingly, over the month of July 2011 we
have repurchased 6.5 million shares.
Central counterparty risk ­ Risk management
Transactions carried out on BM&FBOVESPA markets are secured with collateral pledged by
market participants in the form of cash, government bonds and corporate debt securities, bank
letters of guarantee and stocks, among other eligible collaterals. As of June 30, 2011, the
aggregate of pledged collaterals totaled R$162.0 billion, 73.0% of which in the form of
government bonds and cash collateral.
Clearing houses
(in R$ billions)
June 30,
2011
March 31,
2011
December 31,
2010
September 30,
2010
June 30
2010
Derivatives
92.2
94.3
87.5
83.2
75.8
FX
4.6
7.0
3.9
5.2
4.3
Bonds
0.9
1.0
0.9
0.7
0.8
Equities(CBLC)
64.4
59.9
50.7
46.4
39.8
TOTAL
162.0
162.2
143.1
135.6
120.7
The balance of collaterals deposited at our clearing facilities remained substantially unchanged
from the previous quarter. The drop in collaterals pledged as security for FX and derivatives
transactions were almost fully counterbalanced by a rise in collaterals for transactions in
equities, which totaled R$64.4 billion versus R$59.9 billion in the earlier quarter, primarily due
to a surge in the volume of open positions at our securities lending facility.
Corporate and operational risk management
Corporate and operational risk exposures are monitored, assessed and managed primarily by
the management from the operational and administrative departments, monitored by our
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.15.
internal audit team in collaboration with our corporate risk department, supervised by the Audit
Committee, Market Risk Committee (Executive advisory committee) and Risk Committee (Board
advisory committee), at different levels of details. This collaborative work allows for efficient
identification, monitoring, continuing assessment and management of risks that are inherent to
our business and information technology processes, as well as to our strategic movements and
internal controls systems.
In line with our vision and strategy of offering operational excellence and security for all our
customers at all levels throughout the entire value chain of trading, clearing and settlement in
each of the markets we operate, we consistently seek to identify opportunities to enhance and
strengthen our structure and processes for the identification, monitoring and management of
corporate and operational risk exposures.
OTHER HIGHLIGHTS / POST JUNE 30, 2011 EVENTS
New pricing policy
In July 2011 BM&FBOVESPA announced the adoption of a new fee structure designed to
eliminate cross subsidies embedded in fee rates across the trading and post-trade business lines.
This new structure has a `neutral effect' relative to overall cost-by-trade for market participants
and end­customers compared to overall cost-by-trade under the current structure. Additionally,
the rebalancing corrects the distortions and allows for better comparability with the fees
charged by other exchanges around the world.
Following its implementation, the trading fees the Company will be charging will represent on
average 30% of the overall cost-by-trade within the Bovespa segment (compared to 70% on
average prior to the change) and 40% within the BM&F segment. Cash equities and equity
derivatives changes will take effect from the August 26, 2011 trading session, whereas changes
related to BM&F segment listed derivatives take effect starting from the trading session of
October 31, 2011.
New Products
Options market makers. In July 2011 BM&FBOVESPA announced the winning bidders (three
for each stock) that will act as market makers for options on OGX stocks and Itaú Unibanco
preferred stocks for a 12-month period starting September 12, 2011. Subsequent stages of
the program contemplate bids to select market makers for options on eight additional
individual stocks and options on Ibovespa.
Launch of additional Unsponsored Level 1 Brazilian Depository Receipts (BDRs). In 2Q11,
tenders for 20 new BDR programs were concluded and the bidding process for the listing of
ten additional programs was launched. To date, there are 30 unsponsored Level 1 BDRs
available to trade in BM&FBOVESPA and 30 additional programs expected to be presented to
the market in the coming weeks.
Technology developments
New multi-asset class electronic trading platform. BM&FBOVESPA has completed the first
stage of the project for joint development and implementation of a multi-asset class
electronic trading platform in collaboration with the CME Group. This first stage consists of
development and implementation of the derivatives module, which is set to launch in August
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.16.
2011. The Company expects the module for the trading of stocks to be launched in the first
half of 2012, and the fixed-income module to be implemented over the course of 2012.
Integration of clearing facilities. In April and May BM&FBOVESPA presented to the market
participants CORE, or CloseOut Risk Evaluation, the new central counterparty multi-asset,
multi-market risk management framework and the linchpin on which our clearing and
settlement risk management system architecture will be based. This important milestone in
the Company's integration process will allow for optimized use of money and collateral
allocation to cover risk exposure in post-trade transactions. It will combine our four distinct
clearing houses (equities, derivatives, forex and bonds) into a single facility, improving the
efficiency of our future integrated clearing facility. The development of the integration
project will occur throughout 2012, with certification and deployment fases planned for
2013.
Government Measures
On July 2011, the Brazilian Federal Government announced some measures in order to curb the
Brazilian currency appreciation in relation to the US dollar. Those measures (Provisional
Measure 539 and Decree 7,536, published on July 26, 2011) can have influence over some of the
markets managed by BM&FBOVESPA, especially in the case of derivative contracts whose the
settlement value is affected by the change in the exchange rate.
Our Executive Board is evaluating the impact, if any, of such measures on the business and on
future Company's results. Revenues from trading of derivatives contracts whose the settlement
value is affected by the change in the exchange rate (FX derivatives contracts and USD interest
rate contracts) accounted for around 13.0% of overall revenues on the first half of 2011.
INDEPENDENT AUDITORS
The policy that governs the engagement of external audit services by us and our subsidiaries is
based on generally accepted auditing standards (GAAS), which preserve service independence
and include the following practices: (i) the auditors cannot hold executive or managerial
positions in the Company or its subsidiaries; (ii) the auditors cannot perform operating activities
in the Company or its subsidiaries which could compromise the auditing function; and (iii) the
auditors must be impartial in order to avoid conflicts of interest and loss of independence, and
must be objective in their opinions and reports about the financial statements.
In the quarter to June 2011 the independent auditors and their related parties have provided no
audit-unrelated services to us that is 5% superior of the external audit services fees.

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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­
Bolsa de Valores,
Mercadorias
e Futuros
Quarterly Information (ITR) at
June 30, 2011
and Report on Review of
Quarterly Information
background image
(A free translation of the original in Portuguese)

2
Report on Review of Quarterly Information
To the Board of Directors and Shareholders
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Introdução
We have reviewed the accompanying parent company and consolidated interim accounting
information of BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros, included in the
Quarterly Information (ITR) Form for the quarter ended June 30, 2011, comprising the balance
sheet in June 30, 2011 and the statements of income and of comprehensive income for the three
and six-month period then ended, as well as the statements of changes in equity and cash flows for
the six-month period then ended, including a summary of significant accounting policies and other
explanatory information.
Management is responsible for the preparation of the parent company interim accounting
information in accordance with the accounting standard CPC 21, Interim Financial Reporting, of
the Brazilian Accounting Pronouncements Committee (CPC), and of the consolidated interim
accounting information in accordance with accounting standard CPC 21 and International
Accounting Standard (IAS) 34 - Interim Financial Reporting issued by the International
Accounting Standards Board (IASB), as well as the presentation of this information in accordance
with the standards issued by the Brazilian Securities Commission (CVM), applicable to the
preparation of the Quarterly Information (ITR). Our responsibility is to express a conclusion on
this interim accounting information based on our review.
Scope of review
We conducted our review in accordance with Brazilian and International Standards on Reviews of
Interim Financial Information (NBC TR 2410 ­ Review of Interim Financial Information
Performed by the Independent Auditor of the Entity and ISRE 2410 ­ Review of Interim Financial
Information Performed by the Independent Auditor of the Entity, respectively). A review of
interim information consists of making inquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance with Brazilian and International
Standards on Auditing and consequently does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in an audit. Accordingly, we do not
express an audit opinion.
Conclusion on the parent
company interim information
Based on our review, nothing has come to our attention that causes us to believe that the
accompanying parent company interim accounting information included in the quarterly
information referred to above has not been prepared, in all material respects, in accordance with
CPC 21 applicable to the preparation of the Quarterly Information, and presented in accordance
with the standards issued by the Brazilian Securities Commission (CVM).
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BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros

3


Conclusion on the consolidated
interim information

Based on our review, nothing has come to our attention that causes us to believe that the
accompanying consolidated interim accounting information included in the quarterly information
referred to above has not been prepared, in all material respects, in accordance with CPC 21 and
IAS 34 applicable to the preparation of the Quarterly Information, and presented in accordance
with the standards issued by the Brazilian Securities Commission (CVM).
Other matters
Interim statements
of value added

We have also reviewed the parent company and consolidated interim statements of value added for
the six-month period ended June 30, 2011, which are required to be presented in accordance with
standards issued by the Brazilian Securities Commission (CVM) applicable to the preparation of
Quarterly Information (ITR), and are considered supplementary information under IFRS, which
does not require the presentation of the statement of value added. These statements have been
submitted to the same review procedures described above and, based on our review, nothing has
come to our attention that causes us to believe that they have not been prepared, in all material
respects, in relation to the parent company and consolidated interim accounting information taken
as a whole.

São Paulo, August 9, 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
06/30/2011
12/31/2010
06/30/2011
12/31/2010
Current assets
3,007,507
3,010,770
2,209,697
2,547,589
Cash and cash equivalents
4 (a)
23,096
103,148
25,097
104,017
Financial investments
4 (b)
2,783,877
2,731,324
1,980,414
2,264,408
Accounts receivable
5
70,028
50,052
71,374
51,399
Other receivables
6
16,468
12,253
17,317
12,917
Taxes recoverable and prepaid
93,008
104,997
94,349
105,843
Prepaid expenses
21,030
8,996
21,146
9,005
Non-current
19,377,118
19,410,211
20,354,276
20,086,386
Long-term receivables
498,012
478,878
1,540,061
1,216,812
Financial investments
4 (b)
310,673
331,676
1,349,746
1,066,920
Other receivables - net
6
626
626
2,826
2,827
Deferred income tax and social contribution
19
88,142
54,687
88,142
54,687
Judicial deposits
14 (g)
98,571
91,889
99,347
92,378
Investments
2,259,457
2,353,046
2,189,976
2,286,537
Interest in afiliates
7 (a)
2,152,520
2,248,325
2,152,520
2,248,325
Interest in subsidiaries
7 (a)
106,937
104,721
-
-
Investment property
7 (b)
-
-
37,456
38,212
Property and equipment
8
354,070
362,400
358,650
367,134
Intangible assets
9
16,265,579
16,215,887
16,265,589
16,215,903
Goodwill
16,064,309
16,064,309
16,064,309
16,064,309
Software and projects
201,270
151,578
201,280
151,594
Total assets
22,384,625
22,420,981
22,563,973
22,633,975
at June 30, 2011 and December 31, 2010
BM&FBOVESPA
Consolidated
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
(In thousands of reais)
(A free translation of the original in Portuguese)
Liabilities and shareholders' equity
Notes
06/30/2011
12/31/2010
06/30/2011
12/31/2010
Current
1,379,801
1,220,283
1,537,560
1,416,204
Collateral for transactions
17
1,069,276
954,605
1,069,276
954,605
Earnings and rights on securities in custody
10
36,497
34,791
36,497
34,791
Suppliers
20,581
80,775
21,040
80,828
Salaries and social charges
69,587
63,177
71,285
64,351
Provision for taxes and contributions payable
11
22,674
23,683
22,902
23,981
Income tax and social contribution
-
2,586
2,928
5,576
Financing
Interest payable on debt issued abroad and loans
12
28,457
33,154
28,457
33,154
Dividends and interest on own capital payable
95,458
2,773
95,458
2,773
Other liabilities
13
14,580
24,739
167,026
216,145
Unarned income
22,691
-
22,691
-
Non-current
2,002,444
1,797,933
2,007,194
1,798,723
Debt issued abroad and loans
12
945,726
1,010,059
945,726
1,010,059
Deferred income tax and social contribution
19
997,192
732,074
997,192
732,074
Provision for contingencies and legal obligations
14
59,526
55,800
64,276
56,590
Shareholders' equity
15
19,002,380
19,402,765
19,019,219
19,419,048
Capital and reserves attributable to shareholders of the parent
Capital
2,540,239
2,540,239
2,540,239
2,540,239
Capital reserve
16,675,682
16,662,480
16,675,682
16,662,480
Revaluation reserves
22,825
22,971
22,825
22,971
Statutory reserves
Revenue reserves
441,572
847,658
441,572
847,658
Treasury shares
(915,151)
(613,903)
(915,151)
(613,903)
Valuation adjustments
(186,482)
(88,680)
(186,482)
(88,680)
Additional Dividend proposed
75,373
32,000
75,373
32,000
Retained Earnings
348,322
-
348,322
-
19,002,380
19,402,765
19,002,380
19,402,765
Interest of non-controlling shareholders
-
-
16,839
16,283
Total liabilities and shareholders' equity
22,384,625
22,420,981
22,563,973
22,633,975
Consolidated
at June 30, 2011 and December 31, 2010
BM&FBOVESPA
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
BM&FBOVESPA S.A. - Bolsa de Valores, Mercadorias e Futuros
Statement of Income
Statement of Income
Quarters ended June 30, 2011 and 2010
Quarters ended June 30, 2011 and 2010
(In thousands of reais, unless otherwise stated)
(In thousands of reais, unless otherwise stated)
(A free translation of the original in Portuguese)
2011
2010
2011
2010
Notes
2
nd
Quarter 2011
Accumulated
2
nd
Quarter 2010
Accumulated
Notes
2
nd
Quarter 2011
Accumulated
2
nd
Quarter 2010
Accumulated
Gross operating revenues
513,056
1,029,531
522,437
1,028,554
Gross operating revenues
521,324
1,046,801
528,996
1,041,045
Trading and/or settlement system - BM&F
191,148
377,810
184,138
354,351
Trading and/or settlement system - BM&F
191,148
377,810
184,139
354,352
Derivatives
186,909
369,037
178,799
344,280
Derivatives
186,909
369,037
178,799
344,280
Foreign exchange
4,177
8,690
5,319
10,023
Foreign exchange
4,177
8,690
5,320
10,024
Assets
62
83
20
48
Assets
62
83
20
48
Trading and/or settlement system - Bovespa
240,574
492,290
259,309
515,803
Trading and/or settlement system - Bovespa
240,574
492,290
259,309
515,803
Negotiation ­ trading fees
168,915
352,885
185,739
373,368
Negotiation ­ trading fees
168,915
352,885
185,739
373,368
Transactions ­ clearing and settlement
56,668
119,899
68,277
132,514
Transactions ­ clearing and settlement
56,668
119,899
68,277
132,514
Other
20
14,991
19,506
5,293
9,921
Other
20
14,991
19,506
5,293
9,921
Other operating revenues
81,334
159,431
78,990
158,400
Other operating revenues
89,602
176,701
85,548
170,890
Loans of marketable securities
17,202
32,607
12,345
22,865
Loans of marketable securities
17,202
32,607
12,345
22,865
Listing of marketable securities
11,617
22,893
10,754
22,265
Listing of marketable securities
11,617
22,893
10,754
22,265
Depository, custody and back office
22,937
45,042
22,270
43,160
Depository, custody and back office
22,937
45,042
22,270
43,160
Trading participant access
12,078
24,548
13,431
25,877
Trading participant access
12,078
24,548
13,431
25,877
Vendors ­ quotations and market information
16,301
32,525
16,819
36,447
Vendors ­ quotations and market information
16,301
32,525
16,819
36,447
Other
21
1,199
1,816
3,371
7,786
Bolsa Brasileira de Mercadorias - trading fees and contributions
1,343
3,762
1,056
2,170
Banco BM&F - banking fees
5,096
9,807
3,931
7,219
Deductions of revenue
(53,200)
(106,045)
(52,962)
(104,121)
Other
21
3,028
5,517
4,942
10,887
PIS and COFINS taxes
(46,547)
(93,215)
(47,022)
(92,637)
Taxes on services
(6,653)
(12,830)
(5,940)
(11,484)
Deductions of revenue
(53,685)
(107,005)
(53,365)
(104,897)
Net operating revenue
459,856
923,486
469,475
924,433
PIS and COFINS taxes
(46,912)
(93,926)
(47,325)
(93,212)
Taxes on services
(6,773)
(13,079)
(6,040)
(11,685)
Operating expenses
(161,138)
(341,661)
(136,163)
(263,056)
Administrative and general
Net operating revenue
467,639
939,796
475,631
936,148
Personnel and related charges
(84,671)
(179,417)
(61,800)
(123,061)
Data processing
(22,194)
(45,049)
(23,746)
(44,212)
Operating expenses
(166,762)
(355,476)
(143,474)
(277,278)
Depreciation and amortization
(9,657)
(31,504)
(11,074)
(19,926)
Administrative and general
Outsourced services
(11,140)
(20,020)
(9,502)
(18,511)
Personnel and related charges
(88,172)
(185,625)
(64,371)
(128,089)
Maintenance in general
(2,383)
(4,883)
(2,191)
(4,708)
Data processing
(23,169)
(46,660)
(24,642)
(45,908)
Communications
(5,824)
(12,118)
(6,417)
(12,329)
Depreciation and amortization
(10,101)
(32,395)
(11,524)
(20,826)
Promotion and publicity
(10,599)
(23,815)
(9,724)
(14,852)
Outsourced services
(11,732)
(21,090)
(10,126)
(19,763)
Taxes
(3,659)
(6,719)
(2,258)
(3,294)
Maintenance in general
(2,559)
(5,214)
(2,332)
(5,014)
Board and committee members' compensation
(1,572)
(2,948)
(1,830)
(2,878)
Communications
(5,895)
(12,262)
(6,470)
(12,441)
Sundry
22
(9,439)
(15,188)
(7,621)
(19,285)
Promotion and publicity
(10,700)
(24,091)
(9,870)
(15,198)
Taxes
(3,733)
(6,894)
(2,340)
(3,485)
Equity in income of investees
7
23,865
60,561
(669)
(2,178)
Board and committee members' compensation
(1,572)
(2,948)
(1,830)
(2,878)
Sundry
22
(9,129)
(18,297)
(9,969)
(23,676)
Financial results
23
70,215
132,335
74,839
141,060
Equity in income of investees
7
22,091
59,632
-
-
Income before taxation of profit
392,798
774,721
407,482
800,259
Financial results
23
70,815
134,008
75,536
141,843
Income tax and social contribution
19 (c)
(98,627)
(209,794)
(101,836)
(210,146)
Deferred
(98,627)
(209,794)
(101,836)
(210,146)
Income before taxation of profit
393,783
777,960
407,693
800,713
294,171
564,927
305,646
590,113
Income tax and social contribution
19 (c)
(99,593)
(212,477)
(102,473)
(211,278)
Current
(966)
(2,683)
(637)
(1,132)
Net income for the period
Deferred
(98,627)
(209,794)
(101,836)
(210,146)
Attributable to:
Shareholders of the parent
294,171
564,927
305,646
590,113
Net income for the period
294,190
565,483
305,220
589,435
Attributable to:
Shareholders of the parent
294,171
564,927
305,646
590,113
Non-controlling interest
19
556
(426)
(678)
15 (g)
Basic profit per share
0.150230
0.288354
0.152218
0.293931
Dilluted profit per share
0.149761
0.287183
0.151218
0.291937
Profit per share attributable to shareholders of the
parent (presentede in R$ per share)
BM&FBOVESPA
Consolidated
The accompanying notes are an integral part of this Financial Statements.
6
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BM&FBOVESPA S.A. - Bolsa de Valores, Mercadorias e Futuros
Quarters ended June 30, 2011 and 2010
(In thousands of reais)
(A free translation of the original in Portuguese)
2011
2010
2011
2010
2
nd
Quarter 2011
Accumulated
2
nd
Quarter 2010
Accumulated
2
nd
Quarter 2011
Accumulated
2
nd
Quarter 2010
Accumulated
Net income for the quarter
294,171
564,927
305,646
590,113
Net income for the quarter
294,190
565,483
305,220
589,435
Valuation adjustments
(62,071)
(97,802)
(43,775)
(61,026)
Valuation adjustments
(62,071)
(97,802)
(43,775)
(61,026)
Mark to market of financial assets available for sale
-
-
(66,326)
(92,463)
Mark to market of financial assets available for sale
-
-
(66,326)
(92,463)
Tax effects on mark to market of financial assets available for sale
-
-
22,551
31,437
Tax effects on mark to market of financial assets available for sale
-
-
22,551
31,437
Exchange variation on foreign investment in associate
(92,406)
(143,026)
-
-
Exchange variation on foreign investment in associate
(92,406)
(143,026)
-
-
Hedge of net investment abroad
41,371
64,321
-
-
Hedge of net investment abroad
41,371
64,321
-
-
Tax effects on hedge of net investment in a foreign operation
(14,066)
(21,869)
-
-
Tax effects on hedge of net investment in a foreign operation
(14,066)
(21,869)
-
-
Other comprehensive income from foreign affiliate
3,030
2,772
-
-
Other comprehensive income from foreign affiliate
3,030
2,772
-
-
Total comprehensive income for the quarter
232,100
467,125
261,871
529,087
Total comprehensive income for the quarter
232,119
467,681
261,445
528,409
Attributable to:
232,100
467,125
261,871
529,087
Attributable to:
232,119
467,681
261,445
528,409
Shareholders of the parent
232,100
467,125
261,871
529,087
Shareholders of the parent
232,100
467,125
261,871
529,087
Non-controlling interest
-
-
-
-
Non-controlling interest
19
556
(426)
(678)
Statement of Comprehensive Income
BM&FBOVESPA
CONSOLIDATED
The accompanying notes are an integral part of this Financial Statements.
7
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BM&FBOVESPA S.A. - Bolsa de Valores, Mercadorias e Futuros
Statement of Changes in Shareholders' Equity
Quarter ended June 30, 2011
(In thousands of reais)
Revaluation
Statutory
Treasury
Aditional
Capital
reserve
Legal
reserves
shares
Valuation
Dividends
Retained
Non-controlling
Total
Capital
reserve
(Note 15(c))
Reserve
(Note 15(d))
(Note 15(b))
Adjustments
Proposed
earnings
Total
interest
Equity
At December 31, 2010
2,540,239
16,662,480
22,971
3,453
844,205
(613,903)
(88,680)
32,000
-
19,402,765
16,283
19,419,048
Exchange variation on foreign investment
-
-
-
-
-
-
(143,026)
-
-
(143,026)
-
(143,026)
Hedge of net investment
-
-
-
-
-
-
42,452
-
-
42,452
-
42,452
Reflex effect on comprehensive income related to overseas affiliates
-
-
-
-
-
-
2,772
-
-
2,772
-
2,772
Total other comprehensive income
-
-
-
-
-
-
(97,802)
-
-
(97,802)
-
(97,802)
Realization of revaluation reserve - subsidiaries
-
-
(146)
-
-
-
-
-
-
(146)
-
(146)
Repurchase of shares
15(b)
-
-
-
-
-
(334,225)
-
-
-
(334,225)
-
(334,225)
Disposal of treasury shares - exercised options
18
-
(21,469)
-
-
-
32,977
-
-
-
11,508
-
11,508
Recognition of stock option plan
18
-
34,671
-
-
-
-
-
-
-
34,671
-
34,671
Approval/Payment of additional dividends proposed
15(f)
-
-
-
-
(406,086)
-
-
(32,000)
-
(438,086)
-
(438,086)
Net income for the period
-
-
-
-
-
-
-
-
564,927
564,927
556
565,483
Appropriation of net income:
Interest on own capital
15(f)
-
-
-
-
-
-
-
75,373
(66,605)
8,768
-
8,768
15(f)
-
-
-
-
-
-
-
-
(150,000)
(150,000)
-
(150,000)
At June 30, 2011
2,540,239
16,675,682
22,825
3,453
438,119
(915,151)
(186,482)
75,373
348,322
19,002,380
16,839
19,019,219
Revenue
Reserve
Atributable to shareholders of the parent
The accompanying notes are an integral part of this Financial Statements.
8
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BM&FBOVESPA S.A. - Bolsa de Valores, Mercadorias e Futuros
Statement of Changes in Shareholders' Equity
Quarter ended June 30, 2010
(In thousands of reais)
Revenue reserves
Revaluation
Statutory
Treasury
Aditional
Capital
reserve
reserves
shares
Valuation
Dividends
Retained
Non-controlling
Total
Capital
reserve
(Note 15(c))
(Note 15(d))
(Note 15(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
-
-
(290)
-
-
-
-
-
(290)
-
(290)
Disposal of treasury shares - exercised options
-
(13,056)
-
-
20,553
-
-
-
7,497
-
7,497
Recognition of stock option plan
-
16,011
-
-
-
-
-
-
16,011
-
16,011
Mark to market adjustment of financial assets available for sale
-
-
-
-
-
(61,026)
-
-
(61,026)
-
(61,026)
Approval/Payment of additional dividends proposed
-
-
-
-
-
-
(20,000)
-
(20,000)
-
(20,000)
Net income for the period
-
-
-
-
-
-
-
590,113
590,113
(678)
589,435
Appropriation of net income:
Dividends
-
-
-
(248,000)
-
-
-
-
(248,000)
-
(248,000)
Interest on own capital
-
-
-
-
-
-
-
(227,000)
(227,000)
-
(227,000)
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
Atributable to shareholders of the parent
The accompanying notes are an integral part of this Financial Statements.
9
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BM&FBOVESPA S.A. - Bolsa de Valores, Mercadorias e Futuros
Six month periods ended June 30, 2011 and 2010
(In thousands of reais)
(A free translation of the original in Portuguese)
BM&FBOVESPA
Consolidated
Accumulated 2011
Accumulated 2010
Accumulated 2011
Accumulated 2010
Cash flows from operating activities
Net income for the period
564,927
590,113
565,483
589,435
Adjustments for:
Depreciation and amortization
31,504
19,926
32,395
20,826
Profit on sale of property and equipment
(211)
(5)
(222)
(5)
Deferred income tax and social contribution
209,794
210,146
209,794
210,146
Equity in results of subsidiaries
(60,561)
2,178
(59,632)
-
Expenses related to the stock option plan
34,671
16,011
34,671
16,011
Interest expense
32,395
-
32,395
-
Variation in financial investments and collateral for transactions
83,121
(228,381)
115,839
(291,385)
Variation in taxes recoverable and prepaid
11,989
(27,007)
11,494
(27,348)
Variation in accounts receivable
(19,976)
(21,649)
(19,975)
(21,375)
Variation in other receivables
(4,216)
(2,122)
(4,401)
(1,692)
Variation in prepaid expenses
(12,034)
497
(12,141)
373
Variation in judicial deposits
(6,682)
(4,382)
(6,969)
(3,505)
Variation in earnings and rights on securities in custody
1,706
1,143
1,706
1,143
Variation in suppliers
(60,194)
36,312
(59,788)
36,235
Variation in provision for taxes and contributions payable
(1,009)
(4,152)
(1,079)
(4,041)
Variation in provisions for income tax and social contribution
(2,586)
(886)
(2,648)
(2,511)
Varition in salaries and social charges
6,410
9,418
6,934
9,604
Variation in other liabilities
(10,159)
(106)
(49,119)
60,587
Variation in unarned income
22,691
20,772
22,691
20,772
Variation in provision for contingencies
3,726
3,991
7,686
4,100
Net cash provided by operating activities
825,306
621,817
825,114
617,370
Cash flows from investing activities
Receipt on sale of property and equipment
2,860
412
2,904
412
Payment for purchase of property and equipment
(21,488)
(61,254)
(21,641)
(61,551)
Dividends received
15,183
6,863
15,183
6,863
Capital increase in subsidiaries
(1,433)
(1,962)
-
-
Acquisition of softwares and projects
(54,027)
(33,040)
(54,027)
(33,040)
Net cash (used in) provided by investing activities
(58,905)
(88,981)
(57,581)
(87,316)
Cash flows from financing activities
Disposal of treasury shares - stock options exercised
11,508
7,497
11,508
7,497
Repurchase of shares
(334,225)
-
(334,225)
-
Variation in financing
(618)
(5,121)
(618)
(5,121)
Debt issued
(36,486)
-
(36,486)
-
Payment of dividends and interest on own capital
(486,632)
(492,088)
(486,632)
(492,088)
Net cash used in financing activities
(846,453)
(489,712)
(846,453)
(489,712)
Net increase in cash and cash equivalents
(80,052)
43,124
(78,920)
40,342
Cash and cash equivalents at the beginning of the period
103,148
46,746
104,017
50,779
Cash and cash equivalents at the end of the period
23,096
89,870
25,097
91,121
-
-
-
-
Statement of Cash Flows
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
Six month periods ended June 30, 2011 and 2010
(In thousands of reais)
(A free translation of the original in Portuguese)
BM&FBOVESPA
Consolidated
Accumulated 2011
Accumulated 2010
Accumulated 2011
Accumulated 2010
1 - Revenues
1,029,531
1,028,554
1,046,801
1,041,045
Trading and/or settlement system
870,100
870,154
870,100
870,155
Other operating revenues
159,431
158,400
176,701
170,890
2 ­ Goods and services acquired from third parties
121,073
113,897
127,614
122,000
Operating expenses (a)
121,073
113,897
127,614
122,000
3 ­ Gross value added (1-2)
908,458
914,657
919,187
919,045
4 - Retentions
31,504
19,926
32,395
20,826
Depreciation and amortization
31,504
19,926
32,395
20,826
5 ­ Net value added produced by the company (3-4)
876,954
894,731
886,792
898,219
6 ­ Value added transferred from others
227,586
141,544
229,083
145,120
Equity in results of subsidiaries
60,561
(2,178)
59,632
-
Financial income
167,025
143,722
169,451
145,120
7 ­ Total value added to be distributed (5+6)
1,104,540
1,036,275
1,115,875
1,043,339
8 - Distribution of Value Added
1,104,540
1,036,275
1,115,875
1,043,339
Personnel and related charges
179,417
123,061
185,625
128,089
Board and committee members' compensation
2,948
2,878
2,948
2,878
Income tax, taxes and contributions (b)
322,558
317,561
326,376
319,660
Financial expenses
34,690
2,662
35,443
3,277
Interest on own capital and dividends
216,605
227,000
216,605
227,000
Constitution of statutory reserves
348,322
363,113
348,878
362,435
(b) Including: taxes, PIS, COFINS, ISS and income tax and social contribution (current and deferred).
-
-
(a) Operating expenses (excludes personnel, Board and committee members' compensation, depreciation, rents and taxes).
The accompanying notes are an integral part of this Financial Statements.
11
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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 June 30, 2011
(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 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 Company 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
clearinghouses and include transactions with securities, interbank foreign exchange and securities
under custody in the Special System for Settlement and Custody (Selic) markets.
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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 June 30, 2011
(All amounts in thousands of reais)
14

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) represents BM&FBOVESPA abroad through relationships
with other exchanges and regulatory agents, as well as assisting in the procurement of new clients.
During the first quarter of 2011, BM&FBOVESPA management changed the structure of its foreign
subsidiaries, such that BM&FBOVESPA UK Ltd., which was formerly a wholly-owned subsidiary of
BM&F USA Inc., is now directly controlled by BM&FBOVESPA in accordance with the corporate
acts signed on February 1, 2011
2
Preparation and Presentation of the financial statements

This financial statements were approved by the Board of Directors of BM&FBOVESPA on August 9,
2011.

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
Pronouncements Committee ­ CPC, approved by resolutions of the Federal Accounting Council ­
CFC and rules of Brazilian Securities Commission ­ CVM. Additionally the quarterly information
contemplate the disclosure requirements established by CPC 21 ­ Intermediate Statements, as well as
other information deemed relevant.

The preparation of financial statements requires the use of critical accounting estimates and also the
exercise of judgment by management in the process of applying the accounting policies of
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 June 30, 2011
(All amounts in thousands of reais)
15
BM&FBOVESPA. Those areas that require higher degrees of judgment and have greater complexity,
as well as areas where assumptions and estimates are significant to the consolidated financial
statements are disclosed in Note 3 (v).

(a) Consolidated financial statements
The consolidated financial statements have been prepared and presented in accordance with
accounting practices adopted in Brazil, complemented by pronouncements, interpretations and
guidelines of the Accounting Pronouncements Committee (CPCs).
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, 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")
86.95
BM&F USA Inc.
100.00
BM&F UK Ltd.
100.00

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

Jointly controlled investment fund (1)
Megainvest Fundo de Investimento em Cotas de Fundos de Investimento Renda Fixa
(1)
Consolidation in proportion to the ownership percentage of BM&FBOVESPA in the
investment fund.

The financial intermediation income provided by the operations of Banco BM&F, previously
disclosed as financial income, was reclassified to other operating income, with no effect on net
income and shareholders' equity.



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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 June 30, 2011
(All amounts in thousands of reais)
16
(b) Individual financial statements

The individual quarterly financial information statements of the parent have been prepared under
accounting practices adopted in Brazil issued by the Accounting Pronouncements Committee (CPC)
and are published together with the consolidated quarterly financial statements.

In the individual financial statements (BM&FBOVESPA), the subsidiaries are recorded on the equity
method. The same adjustments are made both in the individual financial statements and consolidated
financial statements to achieve the same result and net assets attributable to controlling shareholders.

3
Significant Accounting Practices
a.
Consolidation
The following accounting policies are applied in preparing the consolidated financial statements.

Subsidiaries

Subsidiaries are all entities (including special purpose entities) in which BM&FBOVESPA has the
power to govern the financial and operating policies, generally accompanied by a participation of
more than half of the voting rights (voting capital). The existence and effect of potential voting
rights currently exercisable or convertible are considered when assessing whether
BM&FBOVESPA controls another entity. Subsidiaries are fully consolidated from the date on
which control is transferred to BM&FBOVESPA. Consolidation is discontinued from the date on
which control ends.

Intercompany transactions, balances and unrealized gains on transactions between group
companies are eliminated. Unrealized losses are also eliminated unless the transaction provides
evidence of impairment of transferred assets. The accounting policies of subsidiaries are altered
where necessary to ensure consistency with the practices adopted by BM&FBOVESPA.

Affiliates
Affiliates are all entities over which BM&FBOVESPA has significant influence but not control.
Investments in associates are recorded on the equity method and are initially recognized at the cost
of each purchase. BM&FBOVESPA's investment in associates includes goodwill identified on
acquisition, net of any accumulated impairment loss.

The share of BM&FBOVESPA in the post-acquisition profits or losses of associates is recognized
in the statement of income and its share in post-acquisition reserves changes is recognized in
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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 June 30, 2011
(All amounts in thousands of reais)
17
reserves. The cumulative post-acquisition changes are adjusted against the carrying value of the
investment. When the share of BM&FBOVESPA in the losses of an associate equals or exceeds
its share in the associate, including any other receivables, BM&FBOVESPA does not recognize
further losses, unless it has incurred obligations or made payments on behalf of the associate.

Unrealized gains arising from transactions between BM&FBOVESPA and its associates are
eliminated to the extent of the participation of BM&FBOVESPA in the affiliates. Unrealized
losses are also eliminated unless the transaction provides evidence of impairment of assets
transferred. The accounting policies of associates have been altered where necessary to ensure
consistency with the practices adopted by BM&FBOVESPA.

b.
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.
c.
Cash and cash equivalents

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

d.
Financial instruments
(i) Classification and calculation

The Company 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.
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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 June 30, 2011
(All amounts in thousands of reais)
18
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
Fair values of investments with public quotations are based on current market prices. For financial
assets without an active market or public quotation, the Company determines fair value through
valuation techniques, such as option pricing models.
The Company 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".
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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 June 30, 2011
(All amounts in thousands of reais)
19
Gains and losses accumulated in equity are included in the income statement when the foreign
operation is partially disposed of or sold.

e.
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.
f.
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.
g.
Intangible assets
Prepaid expenses include mainly amounts for software maintenance contracts and insurance,
which are amortized over the duration of the contracts.
Goodwill
Goodwill represents the positive difference between the amount paid and / or payable for the
acquisition of a business and the net fair value of assets and liabilities of the acquired subsidiary.
Goodwill from acquisitions of subsidiaries is recorded in "intangible assets". If the difference is
negative, representing a discount to fair value, it must record the amount as a gain in income at the
date of acquisition. Goodwill is tested annually for impairment. Goodwill is stated cost value less
accumulated impairment losses. Recognized impairment losses on goodwill are not reversed.

Goodwill is allocated to Cash Generating Units (CGUs) for purposes of impairment testing. The
allocation is made to the Cash Generating Units that should benefit from the business combination
from which the goodwill arose, and are identified according to the operating segment.



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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 June 30, 2011
(All amounts in thousands of reais)
20
Software and projects
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.
Amortization expenses are recognised in profit or loss unless it is included in the carrying amount
of another asset. In these cases, the amortization of intangible assets used in development
activities is included as part of the cost of other intangible assets.

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/IAS 39 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. At
the end of each year, the residual values and useful lives of assets are reviewed and adjusted if
appropriate.

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
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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 June 30, 2011
(All amounts in thousands of reais)
21
the cost of the item can be measured reliably. All other repairs and maintenance are recorded in
income, when incurred.

Depreciation expenses are recognised in profit or loss unless it is included in the carrying amount
of another asset. In these cases, the depreciation used in development activities is included as part
of the cost of an intangible assets.
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/IAS 37.
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.
Other Provisions - Provisions are recognized when BM&FBOVESPA has a present
obligation, legal or constructive, as a result of past events, it is probable that an outflow of
resources is required to settle the obligation, and a reliable estimate of the amount can be
made.
k.
Judicial deposits
Judicial deposits are monetarily restated and presented in non-current assets.

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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 June 30, 2011
(All amounts in thousands of reais)
22
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
Assets that have an indefinite life, such as goodwill, are not subject to amortization and are tested
annually for impairment. The assets subject to amortization are reviewed for verification of
impairment whenever events or changes in circumstances indicate that the carrying value may not
be recoverable. An impairment loss is recognized by at the amount by which the asset's carrying
amount exceeds its recoverable amount. This latter amount is the higher of the fair value of an
asset less selling costs and the value in use. For purposes of evaluation of impairment, assets are
grouped at the lowest levels for which there are separately identifiable cash flows (Cash
Generating Units (CGU)). The non-financial assets, except goodwill, which has suffered
impairment are reviewed subsequently to analyze a possible reversal of the impairment at the date
of the report.
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 over
their useful lives.

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.
Employee benefits
(i) Pension obligations
The Company offers its employees a defined contribution plan and pays contributions on
contractual or voluntary bases. Once the contributions have been made, the Company 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.


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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 June 30, 2011
(All amounts in thousands of reais)
23
(ii) Share-based remuneration (stock options)
The Company offers to its employees and executives share-based remuneration plans, to be
settled in Company stock, according to which the Company 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 the balance sheet, the Company 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 for the employees profit sharing program is recorded on a accrual basis, according
to the remuneration policy of BM&FBOVESPA.
p.
Financing and Borrowing
Financing and borrowing are 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.
q.
Foreign currency translation

The items included in financial statements 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.

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
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.
In the case of exchange variation of investments abroad, which have a functional currency
different from tha of BM&FBOVESPA, variations in the value of an investment arising solely
from exchange rate changes are recorded under "Asset Valuation Adjustment" in comprehensive
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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 June 30, 2011
(All amounts in thousands of reais)
24
income of BM&FBOVESPA, and are only taken to income when the investment is sold or
written off. When applying the equity method, unrealized gains on transactions with subsidiaries
and associated companies are eliminated.
The exchange gains and losses on non-monetary financial assets related to shares of CME
Group, classified as available for sale until July 2010, are included in comprehensive income.
After July 2010, the investment in CME Group was recorded on the equity method (Note 7) and
the currency effects are recognized in comprehensive income.
r.
Taxes
The expenses of income tax and social contribution of the period comprise current and deferred
taxes. The income taxes are recognized in the income statement, except to the extent that they
relate to items recognized directly in equity or comprehensive income. In this case, the tax is also
recognized in equity or comprehensive income.

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.
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.

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
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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 June 30, 2011
(All amounts in thousands of reais)
25
of future income prepared based on internal assumptions and future economic scenarios which
may, accordingly, undergo change.

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.

Deferred income tax and social contribution are not recorded if it results from the initial
recognition of an asset or liability in a transaction other than a business combination, which, at
the time of the transaction does not affect the net income or the taxable income (tax loss). The
deferred income tax and social contribution are determined using tax rates (and tax laws) enacted,
or substantially enacted, at the balance sheet date, and should be applied when its deferred tax
asset is realized or when the deferred tax liability is settled.
s.
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 15(g)), had been issued during the
respective periods.

t.
Distribution of dividends and interest on capital
The distribution of dividends and interest on capital to shareholders of the Company is
recognized as a liability in the financial statements at year end, based on the Company's Bylaws.
Any amount above the minimum required is accrued only on the date it is approved by the
shareholders at the General Meeting.
u.
Segment information presentation
The note 24 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.

v.
Critical accounting estimates and judgments
i.
Equity method of accounting

BM&FBOVESPA applies the equity method for its investments when it has the ability to
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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 June 30, 2011
(All amounts in thousands of reais)
26
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.
ii.
Impairment

Annually, BM&FBOVESPA performs tests of impairment, specifically related to goodwill and
fixed assets, according to the accounting policy described in note 3(m).
iii.
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(d).
iv.
Stock option plan

BM&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
BM&FBOVESPA
Details
06/30/2011
12/31/2010
Banks - deposits in domestic currency
42
3,277
Banks - deposits in foreign currency
23,054
99,871
Total
23,096
103,148
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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 June 30, 2011
(All amounts in thousands of reais)
27
Consolidated
Details
06/30/2011
12/31/2010
Banks - deposits in domestic currency
733
3,622
Banks - deposits in foreign currency
24,364
100,395
Total
25,097
104,017
Cash and cash equivalents are held in domestic or outside first class financial institutions. Deposits in
foreign currency are primarily in U.S. dollars.

b.
Financial Investments
The breakdown of financial investments by nature and time to maturity is as follows:
BM&FBOVESPA
Without
maturity
Up to 3
months
More than 3
and up to 12
months
More than
12 months
and up to 5
years
More than 5
years
06/30/2011
12/31/2010
Details
Financial investment funds (1)
2,635,192
­
­
­
­
2,635,192
1,676,725
Securities purchased under resell agreements
­
1,097
­
­
­
1,097
935,617
Financial Treasury Bills
­
95
138,779
310,031
­
448,905
425,568
Other investments
8,094
­
620
642
­
9,356
25,090
Total financial investments
2,643,286
1,192
139,399
310,673
-
3,094,550
3,063,000
Short term
2,783,877
2,731,324
Long term
310,673
331,676
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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 June 30, 2011
(All amounts in thousands of reais)
28
CONSOLIDATED
Without
maturity
Up to 3
months
More than 3
and up to 12
months
More than
12 months
and up to 5
years
More than 5
years
06/30/2011
12/31/2010
Details
Financial investment funds (2)
207,798
­
­
­
­
207,798
204,740
Securities purchased under resell agreements
­
1,514,319
17,569
­
­
1,531,888
1,852,090
Financial Treasury Bills
­
95
229,888
1,276,165
218
1,506,366
1,235,529
National Treasury Bills
­
1,500
­
65,272
­
66,772
4,138
Other investments
8,107
­
1,138
8,091
­
17,336
34,831
Total financial investments
215,905
1,515,914
248,595
1,349,528
218
3,330,160
3,331,328
Short term
1,980,414
2,264,408
Long term
1,349,746
1,066,920
(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.
Equity investment funds and jointly controlled investment funds included in the process of
consolidation of the quarterly information are: (i) Supremo Renda Fixa
- FICFI - R$
269,885
(R$
258,625
at December 31, 2010), (ii) Bradesco FI Multimercado Letters - R$
1,787,069
(R$
723,402
at
December 31, 2010); (iii) Megainvest FIC FI Renda Fixa - R$
508,819 (R$ 629,049
at December 31,
2010).
(2)
The main investment funds that were not consolidated are detailed in the table 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 June 30, 2011
(All amounts in thousands of reais)
29
BM&FBOVESPA and
Consolidated
Fund
Bank
Details
06/30/2011 12/31/2010
FIC Referenciado DI
Federal
Bradesco Retail fund that invests in quotas
of other investment funds;
207,798
204,669
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 Company 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.

The financial assets at fair value through profit and loss, financial assets available for sale and
derivative financial instruments are classified as level 1, ie, have quoted prices (unadjusted) in active
markets.

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(a)) 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,
at the option of Administration, hedge accounting is not adopted.
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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 June 30, 2011
(All amounts in thousands of reais)
30

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$ 3,239 (R$ 686 at December 31,2010)

The DI1 contracts have the same maturity dates as the
preset position that
(fixed interest rate) to
which they are related.

Financial risk management policy
The Company's 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, via 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:
Risk Factors (Consolidated)
06/30/2011
12/31/2010
Risk factor
Risk
Percentual
Percentual
CDI
Falling CDI
99,61%
99.35%
Fixed interest rate
Rising fixed rate
0,10%
0.35%
USD
Rising dollar
0.05%
0.05%
Gold price
Falling gold
0.24%
0.25%
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.
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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 June 30, 2011
(All amounts in thousands of reais)
31
We present in the table below, the impacts of a range of 25% and 50% from the likely scenario of the
CDI rate, because it is the risk factor with greater exposure.

Effect on the Income Statement (scenario for 3 months)
Scenario
Scenario
Scenario
Scenario
Scenario
Risk factor
-50%
-25%
Likely
25%
50%
Financial
Investments
CDI/Selic
47.772
70.915
93.593
115.827
137.639
Index rates
CDI/Selic
5,88%
8,83%
11,77%
14,71%
17,65%
Fixed-rate Position
The Company 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, 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 June 30, 2011 the Company's net foreign currency exposure
amounted to R$1,698 (R$1,820 at December 31, 2010). 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

Considering the amounts and percentages involved, , the effects on the portfolio are not considered
material.




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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 June 30, 2011
(All amounts in thousands of reais)
32
5
Accounts Receivable

The breakdown of accounts receivable is as follows:
BM&FBOVESPA
Details
06/30/2011
12/31/2010
Trading, other fees receivable
27,009
16,312
Annuity
14,521
4,477
Vendors ­ Signal broadcast
10,951
10,599
Trustee and custodial fees
7,831
17,585
Other accounts receivable
15,105
6,971
Provision for doubtful accounts
(5,389)
(5,892)
Total
70,028
50,052
Consolidated
Details
06/30/2011
12/31/2010
Trading, other fees receivable
27,692
17,069
Annuity
14,521
4,477
Vendors ­ Signal broadcast
10,951
10,599
Trustee and custodial fees
7,831
17,585
Other accounts receivable
15,768
7,561
Provision for doubtful accounts
(5,389)
(5,892)
Total
71,374
51,399

The amounts presented above are primarily denominated in Brazilian reais, approximately 90% is
represented by receivables falling due within 60 days.
On June 30, 2011, and the amounts over 90
days amounted to R$ 7,423.

The current provision methodology, as approved by the Executive Board, consider the analysis of the
historical behavior of the receivables portfolio, in order to set the provision as close as possible to the
actual historical losses 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 June 30, 2011
(All amounts in thousands of reais)
33
Therefore, for determined ranges of debts, according to the historical behavior, an estimated loss
percentage has been assigned, which is intended to reflect the expected future loss.

Changes in allowance for credit losses:
BM&FBOVESPA
At December 31, 2010
5,892
Aditions
1,218
Reversals
(1,721)
At June 30, 2011
5,389
6
Other Receivables

Other receivables comprise the following:
BM&FBOVESPA
06/30/2011
12/31/2010
Current
Advances to employees
5,977
1,457
Amounts receivable - related parties (note 16)
7,840
8,134
Warehouse
1,607
1,527
Other
1,044
1,135
Total
16,468
12,253
Non-current
Other
626
626
Total
626
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 June 30, 2011
(All amounts in thousands of reais)
34
Consolidated
06/30/2011
12/31/2010
Current
Advances to employees (1)
6,056
1,523
Linked Credits
1,061
557
Amounts receivable - related parties (note 16)
6,879
7,448
Warehouse
1,607
1,527
Other
1,714
1,862
Total
17,317
12,917
Non-current
Brokers in liquidation (2)
2,200
2,200
Other
626
627
Total
2,826
2,827
(1) Primarily comprised of prepayment of the first tranche of the 13
th
monthly salary, paid on June 30,
2011

(2)Balance of accounts receivable from brokers in liquidation, which considers the equity certificates
pledged by the debtor as collateral.

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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 June 30, 2011
(All amounts in thousands of reais)
35
7
Investments

a.
Investments in subsidiaries

Investments in subsidiaries comprise the following:
Subsidiaries and controlled
entities
shareholders'
equity
Total Shares
Adjusted net
income
%
Stake
Investiment
06/30/2011
Investiment
12/31/2010
Accumulated
Equity 2011
Accumulated
Equity 2010
Subsidiaries
Banco BM&F de Liquidação e
Custódia S.A.
46,826
24,000
1,891
100
46,826
44,935
1,891
1,559
Bolsa Brasileira de Mercadorias
17,911
405
1,927
50,12
8,977
8,011
966
(294)
Bolsa de Valores do Rio de
Janeiro - BVRJ
58,102
115
(875)
86,95
50,520
51,427
(761)
(2,095)
BM&F USA Inc.
500
1,000
(599)
100
500
348
(599)
(1,348)
BM&FBOVESPA UK Ltd.
114
1,000
(568)
100
114
-
(568)
-
106,937
104,721
929
(2,178)
Affiliate
CME Group, Inc. (1)
32,630,893
66,667
433,724
5,09
2,152,520
2,248,325
59,632
-
Total
2,259,457
2,353,046
60,561
(2,178)

Summary of key financial information of subsidiaries and affiliates:
Details
Banco BM&F
Bolsa
Brasileira de
Mercadorias
Bolsa de Valores
do Rio de
Janeiro - BVRJ
BM&F
USA Inc
BM&FBOVESPA
UK Ltd,
CME
Group,
Inc,
Assets
204,353
20,205
63,339
695
902
55,558,300
Liabilities
157,526
2,294
5,237
195
788
22,927,407
Revenue
8,171
2,964
1,646
506
795
2,665,578


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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 June 30, 2011
(All amounts in thousands of reais)
36
Changes in Investments:
Subsidiaries
Affiliate
Investiments
Banco
BM&F
Bolsa
Brasileira
de
Mercadorias
Bolsa de
Valores do
Rio de
Janeiro -
BVRJ
BM&F
USA Inc
BM&FBOVESPA
UK Ltd.
CME
Group, Inc.
Total
At December 31, 2010
44,935
8,011
51,427
348
-
2,248,325
2.353.046
Equity
1,891
966
(761)
(599)
(568)
59,632
60.561
Exchange rate (2)
-
-
-
-
-
(143,026)
(143.026)
Reflex effect on affiliate
-
-
-
-
-
2,772
2.772
Realization of the revaluation
reserve
-
-
(146)
-
-
-
(146)
Capital increase
-
-
-
751
682
-
1.433
Dividends received
-
-
-
-
-
(15,183)
(15.183)
At June 30, 2011
46,826
8,977
50,520
500
114
2,152,520
2.259.457
At March 31, 2011
45,373
9,077
49,729
727
403
2,227,264
2.332.573
Equity
1,453
(100)
937
(227)
(289)
22,091
23.865
Exchange rate (2)
-
-
-
-
-
(92,406)
(92.406)
Reflex effect on affiliate
-
-
-
-
-
3,030
3.030
Realization of the revaluation
reserve
-
-
(146)
-
-
-
(146)
Dividends received
-
-
-
-
-
(7,459)
(7.459)
At June 30, 2011
46,826
8,977
50,520
500
114
2,152,520
2.259.457
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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 June 30, 2011
(All amounts in thousands of reais)
37
(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 fair value of the investment at
June 30, 2011, based on the market price of shares is R$ 1,545,656. Although the fair value is
less than the carrying value,
the analysis of the Administration, there is no need to recognize
impairment.
(2)
In June 2010, BM&FBOVESPA issued bonds in US Dollars whose allowed the protection (net
investment hedge) of part of the currency risk of the investment through the designation of
non-derivative financial instrument (the issuance of debt abroad), as presented in note 12. We
present below the effect on stockholder's equity (other comprehensive income) of the exchange
rate on the portion of the investment that has no hedge, using as parameters the scenarios
defined in CVM Instruction 475/08:
Shareholder Equity impact (Scenario for 3 months)
Falling dollar
30, June 2011
Alta do dólar
-50%
-25%
25%
50%
FX rate
0.7806 1.1708
1.5611
1.9514
2.3417
Exchange variation on the related investment abroad
(1,220,901)
(682,893)
(143,026)
393,124
931,133
Exchange variation on Hedge of net investment
abroad
542,018 303,170
64,321
(174,527)
(413,375)
Tax effect on the foreign exchange variation on
Hedge of net investment abroad
(184,286)
(103,078)
(21,869)
59,339
140,548
Net

(863,169)

(482,801)

(100,574)

277,936

658,306
b.
Investment Property

This category comprises properties owned by the subsidiary BVRJ - Bolsa de Valores do Rio de
Janeiro and leased to others, which are depreciated according to the estimated useful lives of the
asset, in 50 years.
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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 June 30, 2011
(All amounts in thousands of reais)
38
Consolidated
At December 31, 2010
38,212
Depreciation
(756)
At June 30, 2011
37,456

8
Property and Equipment
BM&FBOVESPA
Details
06/30/2011
12/31/2010
Cost
Depreciation
Net
Net
Buildings
219,306
(99,731)
119,575
120,037
Furniture and fixtures
42,411
(26,787)
15,624
14,619
Computer-related equipment
319,983
(191,544)
128,439
143,908
Facilities
60,719
(14,778)
45,941
41,148
Telephone system
4,142
(2,668)
1,474
1,567
Other
70,989
(40,227)
30,762
28,384
Construction in progress
12,255
-
12,255
12,737
Total
729,805
(375,735)
354,070
362,400
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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 June 30, 2011
(All amounts in thousands of reais)
39




Consolidated
Details
06/30/2011
12/31/2010
Cost
Depreciation
Net
Net
Buildings
221,643
(100,500)
121,143
121,649
Furniture and fixtures
42,909
(27,172)
15,737
14,760
Apparatus and equipment
320,849
(192,317)
128,532
144,027
Facilities
61,749
(15,356)
46,393
41,640
Telephone system
4,142
(2,668)
1,474
1,567
Other
73,409
(40,293)
33,116
30,754
Construction in progress
12,255
-
12,255
12,737
Total
736,956
(378,306)
358,650
367,134

The table below represents the changes in annual rates of depreciation of fixed assets classified as
:
Buildings
2.50%
Furniture and fixtures
10%
Computer Related-Equipment
10 to 25%
Facilities
10%
Telephone System
20%
Other
11% to 33%
9
Intangible Assets

Goodwill

The goodwill of R$ 16,064,309 is based on expectations of future income and supported by an
economic of the appraisal and financial investment. The goodwill attributed to expected future
profitability is annually tested for impairment. The test, based on an appraisal report prepared by
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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 June 30, 2011
(All amounts in thousands of reais)
40
experts, has not indicated the need for adjustments to the value of goodwill at December 31, 2010.
During the first half of 2011, in accordance with CPC 21, the management reviewed the internal and
external indicators and concluded that the assumptions of the previous valuation are still appropriate,
not necessitating new calculations for the current period.

Software and projects

The balance comprises costs for the acquisition and development of software and systems, with
amortization rates of 20% to 33% per year, and expenditures for the implementation and development
in progress of new systems and software.
BM&FBOVESPA
Details
06/30/2011
12/31/2010
Cost
Amortization
Net
Net
Cost of software development
116,657
-
116,657
63,931
Concluded software development
10,199
(1,847)
8,352
9,582
Softwares
191,333
(115,072)
76,261
78,065
Total
318,189
(116,919)
201,270
151,578
Consolidated
Details
06/30/2011
06/30/2010
Cost
Amortization
Net
Net
Cost of software development
116,657
-
116,657
63,931
Concluded software development
10,199
(1,847)
8,352
9,582
Softwares
192,547
(116,276)
76,271
78,081
Total
319,403
(118,123)
201,280
151,594

During this half-year, BM&FBOVESPA included as part of the development cost of projects, the
amount of R$ 13,715 related to equipment depreciation and amortization of software used in their
development, and of this amount, R$ 6,840 was recognized in the first quarter as depreciation and
amortization expense and is properly adjusted and incorporated into the cost of projects in the second
quarter.


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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 June 30, 2011
(All amounts in thousands of reais)
41
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
BM&FBOVESPA
Details
06/30/2011
12/31/2010
Withholding taxes and contributions payable
5,872
6,066
PIS/Cofins
14,785
15,490
ISS (Municipal service tax)
2,017
2,127
Total
22,674
23,683
Consolidated
Details
06/30/2011
12/31/2010
Withholding taxes and contributions payable
5,941
6,209
PIS/Cofins
14,906
15,607
ISS (Municipal service tax)
2,055
2,165
Total
22,902
23,981
12
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 nominal value, resulting in a net 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
borrowing on June 30, 2011 is R$ 974,012 ( R$ 1,040,238 at December 31, 2010), which includes 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 June 30, 2011
(All amounts in thousands of reais)
42
amount of R$ 28,286 (R$30,179 at December 31,2010) of accrued interest incurred until June 30,
2011. 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 July 16, 2010, 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) 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 June 30,
2011.

The fair value of debt, calculated with market data, is R$ 983,023 at June 30, 2011 (Source:
Bloomberg).

Additionally, the Company has financial leases of computer equipment. The balance at June 30, 2011
is R$ 171 (R$ 2,975 at December 31, 2010), maturing in 2011.

13
Other liabilities
BM&FBOVESPA
Details
06/30/2011
12/31/2010
Custody agents
4,576
4,413
Liability for purchase of treasury shares
-
6,470
Amounts payable - related parties (Note 16)
2,769
2,652
Third parties services
2,344
2,081
Payable preferred shares (1)
1,839
1,839
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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 June 30, 2011
(All amounts in thousands of reais)
43
Electricity, water and telephone
691
705
Other
2,361
6,579
Total
14,580
24,739

Consolidated
Details
06/30/2011
12/31/2010
Custody agents
4,576 4,413
Liability for purchase of treasury shares
- 6,470
Demand deposits (2)
52,352 50,373
Liabilities for securities purchased under resell
agreements (2)
101,031
141,988
Outsourced services
2,512 2,239
Payable preferred shares (1)
1,839 1,839
Electricity, water and telephone
691 705
Other
4,025 8,118
Total
167,026
216,145

(1)
Refers to the balance of the redemption of preferred shares and corresponds basically to amounts
outstanding of foreign investors.
(2)
Ammounts related to operations with Banco BM&F.
14
Provisions and liabilities e contingent assets
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.
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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 June 30, 2011
(All amounts in thousands of reais)
44
The lawsuits are classified by their probability of loss (probable, possible or remote), based on an
evaluation by the Company and its legal advisors, using parameters such as previous judgments
and the history of loss in similar suits.

The lawsuits 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 Company's
revenues and (ii) receipt of interest on equity.
c.
Legal obligations

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, 2010
4,202
5,795
33,023
12,780
55,800
New provisions
31
394
2,364
-
2,789
Reversals
(61)
(360)
-
-
(421)
Reassessment of contingent risks
(100)
(357)
-
-
(457)
Price-level restatement
247
321
712
535
1,815
At June 30, 2011
4,319
5,793
36,099
13,315
59,526
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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 June 30, 2011
(All amounts in thousands of reais)
45
Consolidated
Civil
Labor
Legal
obligations
Tax
Total
At December 31, 2010
4,245
6,196
33,023
13,126
56,590
New provisions
3,624
887
2,364
-
6,875
Reversals
(107)
(432)
-
-
(539)
Reassessment of contingent risks
(100)
(459)
-
-
(559)
Price-level restatement
305
347
712
545
1,909
At June 30, 2011
7,967
6,539
36,099
13,671
64,276

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 June 30, 2011 are R$ 46,507 in the parent company (R$ 32,749 at
December 31, 2010) and R$ 48,572 on a consolidated basis (R$ 34,609 at December 31,
2010);
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 June 30, 2011 is
R$ 86,002 in the parent company and on a consolidated basis (R$ 74,386 at December 31,
2010).
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 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
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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 June 30, 2011
(All amounts in thousands of reais)
46
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
June 30, 2011 is R$ 46,665 (R$ 45,085 at December 31, 2010). The total amount involved in
tax proceedings classified as possible is R$ 74,001 in the parent company and on a
consolidated basis (R$70,141 at December 31, 2010).
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 Company and its legal advisors consider that the chances of loss in this lawsuit are remote.
BM&FBOVESPA received on November 29, 2010, an assessment notice from the Internal
Revenue Service of Brazil ("RFB"), demanding the payment of income tax (R$301,686 of
principal, plus fines and interest) and social contribution (R$108,525 of principal, plus fines and
interest) representing the amount of those taxes that, in the view of the RFB, BM&FBOVESPA
would have stopped collecting in the years 2008 and 2009 with respect to the amortization for tax
purposes of the goodwill generated upon the merger into the company of Bovespa Holding SA,
adopted at the General Assembly of May 8, 2008. BM&FBOVESPA had questioned the
assessment notice within the statutory period, and is awaiting judgment in the administrative
level. Based on the advice of his lawyers, BM&FBOVESPA considers that the risk of loss
associated with this procedure is remote and will continue to amortize, for tax purposes, this
goodwill, as provided by law.





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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 June 30, 2011
(All amounts in thousands of reais)
47
g.
Judicial deposits
BM&FBOVESPA
Consolidated
Details
06/30/2011
12/31/2010
06/30/2011
12/31/2010
Legal obligations
36,099
33,023
36,454 33,370
Tax
56,242
54,103
56,242 54,103
Civil
4,319
2,096
4,319 2,095
Labor
1,911
2,667
2,332 2,810
Total
98,571
91,889
99,347
92,378

Of the total judicial deposits, (i) R$39,717 (R$ 38,139 at December 31, 2010) 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 and (ii)
R$ 9,773 (R$ 9,366 at December 31, 2010) relates to cases regarding PIS and Cofins on interest
on own capital received. Of the total deposits relating to legal liabilities, R$ 35,049 (R$ 32,594 at
December 31, 2010) relates to processes in which BM&FBOVESPA claims the non-incidence of
additional social security on the payroll and payments to self-employed persons, and in relation
to questions about the legality of charging the Occupational Accident Insurance.

Due to the existence of judicial deposits related to tax processes classified as possible loss, the
total tax contingencies and legal obligations are less than the total deposits related to tax claims.

h.
Law 11,941/09

In November 2009, the Company 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.




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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 June 30, 2011
(All amounts in thousands of reais)
48
15
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 1,955,131,105 outstanding ordinary shares at
June 30, 2011 (1,979,921,193 at December 31, 2010.)
The Company 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, regardless statutory
amendment.
b.
Treasury Shares
Share buyback program

In a meeting held on August 12, 2010, the Board of Directors approved a Share Buyback
Program, aiming to maximize value creation for shareholders through an efficient management
of the capital structure
.
On December 16, 2010, the Board approved the extension of the Repurchase Program, which
now has the final date of June 30, 2011.

BM&FBOVESPA repurchased the expected amount of 60,000,000 common shares during the
period from August 18, 2010 to June 30 2011, comprising 31,950,000 in 2010 and 28,050,000 in
the first half of 2011, representing 3.03% of the total outstanding shares.

At the meeting held on June 16, 2011, the Board of Directors approved the new Share Buyback
Program of the company, beginning July 1 , 2011 and finishing on December 31, 2011. The limit
of shares to be acquired by the Company is 30,000,000 common shares, representing 1.5% of
total outstanding shares.
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
BM&FBOVESPA..




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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 June 30, 2011
(All amounts in thousands of reais)
49
We present below the activity of treasury shares during the semester:
Quantity
Amount
At December 31, 2010
64,093,102
613,903
Acquisition of Shares - Share Buyback Program
18,620,000
227,960
Sold shares - stock option (Note 18)
(1,505,412)
(15,033)
At March 31, 2011
81,207,690
826,830
Acquisition of Shares - Share Buyback Program
9,430,000
106,265
Sold shares - stock option (Note 18)
(1,754,500)
(17,944)
At June 30, 2011
88,883,190
915,151
Average cost of treasury shares (R$)
10.296
Market value of treasury shares
918,163
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.

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, entirely reversed upon the acquisition of new
shares, when the investment began to be recorded on the equity method (Note 7).

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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 June 30, 2011
(All amounts in thousands of reais)
50
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%.

At December, 2010, BM&FBOVESPA approved an additional R$ 32,000 (R$ 0.016156 per
share) as interest on own capital over the minimum required, which was paid on January 19,
2011.

At the Annual General Shareholders Meeting held on April 18, 2011, the shareholders approved
the proposal for payment in the amount of R$ 406,086 (R$ 0.207025 per share), as a supplement
to dividends for the year ended December 31, 2010, fully paid in may 16, 2011.

The approved interest on own capital and dividends referring to the net income of the period are
detailed below:
Details
Deliberation
Payment
Per share
(gross) (R$)
Total amount
(gross)
Interest on own capital
RCA BVMF - 17/02/2011
03/10/2011
0,025461
50.000
Interest on own capital
RCA BVMF - 12/05/2011
07/05/2011
0,051128
100.000
Dividends
RCA BVMF -12/05/2011
07/05/2011
0,034054
66.605
Total approved in the period
216.605
The management of BM&FBOVESPA chose not to create a unrealized revenue reserve for the
difference between the amount recognized in equity and the amount received as dividends
resulting from participation in the affiliate CME Group.









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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 June 30, 2011
(All amounts in thousands of reais)
51
g.
Earnings per share

Consolidated
Basic
2011
2010
2
nd
Quarter 2011
Accumulated
2
nd
Quarter 2011
Accumulated
Numerator
Net income available to shareholders of
BM&FBOVESPA
294,171
564,927
305,646
590,113
Denominator
Weighted average of shares in circulation
1,958,140,957
1,959,140,973
2,007,952,039
2,007,654,956
Basic weighted earnings per share (in R$)
0.150230
0.288354
0.152218
0.293931
Consolidated
Diluted
2011
2010
2
nd
Quarter 2011
Accumulated
2
nd
Quarter 2011
Accumulated
Numerator
Net income available to shareholders of
BM&FBOVESPA
294,171
564,927
305,646
590,113
Denominator
Weighted average of shares in circulation adjusted for
the effects of stock option plans
1,964,264,407
1,967,134,965
2,021,224,655
2,021,368,133
Diluted weighted earnings per share (in R$)
0.149761
0.287183
0.151218
0.291937









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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 June 30, 2011
(All amounts in thousands of reais)
52
16
Related Party Transactions

a.
Transactions and balances with related parties
Assets/ (Liabilities)
Revenue/ (Expenses)
2011
2010
Details
06/30/2011
12/31/2010
2
nd
Quarter Accumulated 2
nd
Quarter
Accumulated
Bolsa de Valores do Rio de Janeiro - BVRJ
Accounts receivable
5
-
Accounts payable
(2,315)
(2,315)
Contribution on membership certificates
-
-
(119)
(238)
Banco BM&F de Serviços de Liquidação e Custódia S.A.
Cash and cash equivalents
-
17
Accounts receivable
595
527
Foreign exchange operations
356
153
Recovery of expenses
1,597
3,086
1,297
2.678
Bolsa Brasileira de Mercadorias
Accounts receivable
5
5
Accounts payable
(111)
(337)
Minimum contribution on membership certificates
(330)
(654)
(287)
(630)
Recovery of expenses
15
29
69
87
BM&FBOVESPA Supervisão de Mercados
Accounts receivable
455
452
Recovery of expenses
633
1,227
650
1.284
Mechanism of reimbursment of losses
Accounts receivable
23
24
Associação BM&F
Accounts receivable
6,370
6,947
CME Group
Accounts payable
(141)
-
BM&F USA Inc.
Accounts payable
(50)
-
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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 June 30, 2011
(All amounts in thousands of reais)
53
BM&F UK Ltd.
Accounts payable
(152)
-
Outras empresas
Accounts receivable
31
26
The main transactions with related parties are listed below and were carried out under the
following conditions:

BM&FBOVESPA pays a minimum fee to BVRJ and Bolsa Brasileira de Mercadorias as a
member of these associations. The payments to BVRJ occurred until December 31, 2010, and
were no longer required by the bylaws of BVRJ as from January 1, 2011.
BM&FBOVESPA, by request of Banco BM&F, Bolsa Brasileira de Mercadorias and
Associação BM&F, contracts companies specialized in providing information technology
services designed to support the activities of these entities and transfers the respective costs
incurred, in full, to the first two entities.
Banco BM&F entered into an agreement with BM&FBOVESPA which, in addition to granting
occupancy of a building owned by the latter, also establishes the utilization of its technology
infrastructure and also its personnel, with transfer of the corresponding costs.

BSM has entered into an agreement with BM&FBOVESPA for the transfer and recovery of
costs which establishes the reimbursement to BM&FBOVESPA of the net amount paid monthly
for expenses incurred in contracting resources and for the infrastructure made available to BSM
to assist in the performance of its supervisory activities.

b.
Remuneration of key management personnel
Key management personnel include Members of the Board, Executive Officers, the Head of
Internal Audit, the Director of Banco BM&F and the Director of Human Resources.







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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 June 30, 2011
(All amounts in thousands of reais)
54
2011
2011
Management benefits
2
nd
Quarter
Accumulated
2
nd
Quarter
Accumulated
Short-term benefits (salaries, participation in results,
etc.)
6.215
12.248
6.587
11.921
Post-employment benefits
-
-
4
12
Employment contract rescission benefits
-
11
493
493
Share based remuneration (1)
2.792
10.226
2.288
4.165
(1)
Represents the expense calculated for the period in relation to the stock options granted to key
management personnel, which was recognized in accordance with the criteria described in Note 18.
17
Safeguard Structure
a.
Risk management

Credit risk - Performance of BM&FBOVESPA as a central counterparty (CCP) guarantor of
markets (Clearing)

BM&FBOVESPA manages four clearinghouses considered systematically important by the
Central Bank of Brazil, i.e. the Derivatives, Foreign Exchange and Securities Clearinghouses and
the Equity and Corporate Debt Clearinghouse (CBLC).

The activities carried out by the clearinghouses of BM&FBOVESPA are governed by Law
10,214, of March 27, 2001, which authorizes the multilateral clearing of obligations, establishes
the central counterparty role of the systemically important clearinghouses and permits the
utilization of the collateral obtained from the defaulting participants to settle their obligations in
the clearinghouse environment, including in cases of civil insolvency, composition with creditors,
intervention, bankruptcy and out-of-court liquidation.

Through these Clearinghouses, BM&FBOVESPA acts as a CCP in the derivatives market
(futures, forwards, options and swaps), in the equity market (spot, forwards, options, futures and
securities loans), the foreign exchange market (spot US dollar), the federal government bond
market (spot and forward transactions and securities loans) and private debt securities (spot and
securities loans). In other words, by assuming the role of a central counterparty,
BM&FBOVESPA becomes responsible for the proper settlement of trades carried out and/or
registered in its systems, as established in the regulations in force.

The performance of BM&FBOVESPA as a central counterparty exposes it to the credit risk of
the participants that utilize its settlement systems. If a participant fails to make the payments due,
or to deliver the assets, securities and/or commodities due, it will be incumbent upon
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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 June 30, 2011
(All amounts in thousands of reais)
55
BM&FBOVESPA to resort to its safeguard mechanisms, in order to ensure the proper settlement
of the transactions in the established time frame and manner. In the event of a failure or
insufficiency of the safeguard mechanisms of its Clearinghouses, BM&F BOVESPA might have
to use its own equity, as a last resort, to ensure the proper settlement of trades.

The BM&FBOVESPA Clearinghouses are not directly exposed to market risk, as they do not
hold net long or net short positions in the various contracts traded. However, the increase of price
volatility can affect the magnitude of amounts settled by the various market participants, and can
also heighten the probability of default by these participants. Furthermore, as already
emphasized, the Clearinghouses are responsible for the settlement of the trades of a defaulting
participant, which could result in losses for BM&FBOVESPA if the amounts due surpass the
amount of collateral available. Accordingly, despite the fact that there is no direct exposure to
market risk, this risk can impact and increase the credit risks assumed.

To mitigate the risks assumed, each BM&FBOVESPA Clearinghouse has its own risk
management system and safeguard structure. The safeguard structure of a Clearinghouse
represents the set of resources and mechanisms that it can utilize to cover losses relating to the
settlement failure of one or more participants. These systems and structures are described in
detail in the regulations and manuals of each Clearinghouse, and have been tested and ratified by
the Central Bank of Brazil, in accordance with National Monetary Council (CMN) Resolution
2,882/01 and BACEN Circular 3,057/01.

The main components of the safeguard structure of the Derivatives Clearinghouse are described
below:
Collateral deposited by derivatives market participants;
Joint responsibility for trade settlement by the brokerage house and clearing member which
acted as intermediaries, as well as the collateral deposited by these participants;
Operational Performance Fund, in the amount of R$ 1,184,051 (R$1,162,122 at December
31, 2010), formed by resources transferred by holders of settlement rights at the Derivatives
Clearinghouse (clearing members) and holders of full trading rights, for the exclusive
purpose of guaranteeing the operations;
Agricultural Market Trading Fund, in the amount of R$50,000 at June 30, 2011 and
December 31, 2010, intended to hold resources of BM&FBOVESPA allocated to guarantee
the proper settlement of transactions involving agricultural commodity contracts;
Special Clearing Member Fund, in the amount of R$40,000 at June 30, 2011 and December
31, 2010, formed by a capital transfer from BM&FBOVESPA., intended to hold
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at June 30, 2011
(All amounts in thousands of reais)
56
BM&FBOVESPA resources allocated to guarantee the proper settlement of transactions,
regardless of the type of contract;
Clearing Fund, in the amount of R$ 411,776 (R$408,509 at December 31, 2010), formed by
collateral transferred by clearing members, intended to guarantee the proper settlement of
transactions after the resources of the two previous funds have been used;
Special equity, in the amount of R$ 36,759 (R$34,807 at December 31, 2010), in compliance
with the provisions of Article 5 of Law 10,214, of March 27, 2001 and of Article 19 of
Circular 3,057 of the Brazilian Central Bank, of August 31, 2001.
The main components of the safeguard structure of the Foreign Exchange Clearinghouse are
described below:
Collateral pledged by foreign exchange market participants;
Participation fund, in the amount of R$ 404,585 (R$162,235 at December 31, 2010), formed
by collateral transferred by Clearinghouse participants, intended to guarantee the proper
settlement of transactions;
Operational Fund of the Foreign Exchange Clearinghouse, in the amount of R$50,000 at June
30, 2011 and December 31, 2010, with the purpose of maintaining funds of
BM&FBOVESPA to cover losses resulting from operating or administrative failures;
Special equity, in the amount of R$ 36,787 (R$34,848 at December 31, 2010), in compliance
with the provisions of Article 5 of Law 10,214, of March 27, 2001 and of Article 19 of
Circular 3,057 of the Brazilian Central Bank, of August 31, 2001.
The main components of the safeguard structure of the Securities Clearinghouse are described
below:
Collateral deposited by federal government bond market participants;
Operational Fund of the Securities Clearinghouse, in the amount of R$40,000 at June 30,
2011 and December 31, 2010, with the purpose of maintaining funds of BM&FBOVESPA to
cover losses resulting from operating or administrative failures of participants;
Special equity, in the amount of R$25,883 (R$24,536 at December 31, 2010), in compliance
with the provisions of Article 5 of Law 10,214, of March 27, 2001 and of Article 19 of
Circular 3,057 of the Brazilian Central Bank, of August 31, 2001.
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at June 30, 2011
(All amounts in thousands of reais)
57
The main components of the safeguard structure of the Equity and Corporate Debt Clearinghouse
(CBLC) are described below:
Collateral deposited by CBLC's market participants;
Joint responsibility for trade settlement by the brokerage house and clearing member that
acted as intermediaries, as well as the collateral deposited by these participants;
Settlement Fund, in the amount of R$ 373,196 (R$485,409 at December 31, 2010), formed
by collateral transferred by clearing members, intended to guarantee the proper settlement of
transactions;
Special equity, in the amount of R$ 39,296 (R$37,210 at December 31, 2010), in compliance
with the provisions of Article 5 of Law 10,214, of March 27, 2001 and of Article 19 of
Circular 3,057 of the Brazilian Central Bank, of August 31, 2001.
The risk management policy adopted by the Clearinghouses is established by the
BM&FBOVESPA Market Risk Committee, in which BM&FBOVESPA officers participate,
including the Clearinghouses' Chief Officers, the Depositary Chief Officer and the Risk Chief
Officer, the Operations and IT Chief Officers, the Products Chief Officer, as well as the Risk
Management Officer and the Settlement Officer, among others. The main duties of the
Committee are (i) the evaluation of the macroeconomic and political environment and of its
impacts on the markets managed by BM&FBOVESPA. (ii) the determination of the models
utilized for calculation of collateral and for control of the intraday risk of the transactions
performed, (iii) the definition of parameters utilized by these models, especially the stress
scenarios referring to each type of risk factor, (iv) the assets accepted as collateral, their form of
valuation, maximum limits of use and applicable haircut factors, and (v) other studies and
analyses.

In view of the amounts involved, the collateral pledged by the participants who carry out the
transactions represents the most significant component of the Clearinghouse's safeguard
structures.
For most of the contracts, the amount required as collateral is calculated so as to cover the market
risk of the transaction, i.e. its price volatility, during the time frame of two days, which is the
maximum time expected for the settlement of the positions of a defaulting participant. This time
frame may vary depending on the nature of the contracts and assets negotiated.
The models utilized in the margin requirement calculation are based on stress testing, a
methodology that seeks to gauge market risk considering not only the recent historical price
volatility, but also the possibility of unexpected events that could modify the historical patterns of
prices and of the market in general.
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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 June 30, 2011
(All amounts in thousands of reais)
58
The main parameters utilized by the margin calculation models are the stress scenarios, defined
by the Risk Committee for the risk factors that affect the prices of contracts and securities traded
at BM&FBOVESPA. Among the main risk factors are the Brazilian real/US dollar exchange rate,
the term structure of the local fixed interest rate, the term structure of the US dollar interest rate,
the Bovespa Index and the cash prices of shares, among others.

In the definition of stress scenarios, the Risk Committee utilizes a combination of quantitative
and qualitative analyses. The quantitative analysis is conducted with the support of statistical
models of risk estimation, such as the Extreme Value Theory (EVT), estimation of implied
volatilities, and GARCH family models, besides historical simulations. The qualitative analysis,
in turn, considers aspects related to the domestic and international economic and political
environments, and their possible impacts on the markets managed by BM&FBOVESPA.
Market risk - Investment of cash funds
Considering the importance of BM&FBOVESPA's equity as a last resource available in the
safeguard structure of its Clearinghouses, its investment policy emphasizes low risk cash
alternatives, normally federal government bonds, including exposure through exclusive and retail
investment funds. As a result, in general, there is a significant proportion of federal securities in
the portfolio of applications of BM&FBOVESPA, being purchased directly, via repurchase
agreements backed by government bonds and also through exclusive and non-exclusive
investment 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

b.
Collateral for transactions

Transactions performed in the BM&FBOVESPA markets are backed by cash margin deposits,
government bonds and corporate securities, letters of credit and other financial instruments. At
June 30, 2011, the pledged collateral totaled R$161,984,126 (R$143,087,657 at December 31,
2010), as follows:








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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 June 30, 2011
(All amounts in thousands of reais)
59
Derivatives Clearinghouse
06/30/2011
12/31/2010
Federal government bonds
83,986,272
76,979,261
Letters of credit
2,590,389
3,538,492
Equities
3,548,416
4,934,328
Bank certificates of deposit (CDBs)
1,067,268
1,150,998
Gold
41,274
105,958
Cash (1)
822,187
652,290
Other
113,587
173,340
Subtotal
92,169,393
87,534,667
Foreign Exchange Clearinghouse
Federal government bonds
4,570,615
3,855,147
Cash (1)
-
66,520
Subtotal
4,570,615
3,921,667
Securities Clearinghouse
Federal government bonds
876,602
928,786
Equity and Corporate Debt
Clearinghouse - CBLC
Federal government bonds
28,875,665
22,749,941
Equities
31,944,292
25,809,847
International bonds (2)
2,416,985
736,905
Bank certificates of deposit (CDBs)
555,239
580,066
Letters of credit
198,598
448,054
Cash (1)
247,089
235,720
Other
129,648
142,004
Subtotal
64,367,516
50,702,537
Total
161,984,126
143,087,657
(1)
The balance of collateral recorded in current liabilities refers to deposits in currency. The availability
of these funds is managed, and their utilization is dependent on the fluctuation of the required margin
balance.

(2)
US and German federal government bonds, as well as ADRs (American Depositary Receipt).
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 June 30, 2011
(All amounts in thousands of reais)
60
c.
Other information - Clearing Fund (Derivatives Clearinghouse)
This is formed by funds invested by the clearing members, with the exclusive purpose of
guaranteeing transactions, and may include bank letters of credit, government bonds and
corporate securities, cash, gold and other assets, at the sole discretion of BM&FBOVESPA.
Collateral represented by securities and other assets depends on prior approval from
BM&FBOVESPA.

The liability of each clearing member is joint and limited, individually. The Clearing Fund was
comprised as follows:
Composition
06/30/2011
12/31/2010
Federal government bonds
352,883
354,256
Letters of credit
44,763
35,012
Bank certificates of deposit (CDBs)
10,000
14,700
Equities
4,130
4,541
Amounts deposited
411,776
408,509
Amounts that ensure clearing
member/trader participation
(308,500)
(313,000)
Excess collateral
103,276
95,509
The minimum contribution for each clearing member is R$2,000, R$3,000 and R$4,000,
depending on whether this member is the holder of a type 1, type 2 or type 3 settlement right,
respectively, in the Derivatives Clearinghouse. In addition, each clearing member must
contribute R$500 per participant entitled to trade under their responsibility. The total amount
deposited in the Clearing Fund is R$411,776 (R$408,509 at December 31, 2010), while the
remainder refers to the surplus of non-enforceable deposited collateral.

d.
Operational Performance Fund (Derivatives Clearinghouse)
This fund is formed by resources transferred by holders of settlement rights in the Derivatives
Clearinghouse (clearing members) and holders of full trading rights, with the exclusive purpose
of guaranteeing transactions. These resources can take the form of bank letters of credit,
government bonds and corporate securities, cash, gold and other assets, at the sole discretion of
BM&FBOVESPA. Collateral represented by securities and other assets depend on prior
approval from BM&FBOVESPA.

The Operational Performance Fund presents the following position:
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 June 30, 2011
(All amounts in thousands of reais)
61
Composition
06/30/2011
12/31/2010
Federal government bonds
946,846
921,678
Letters of credit
207,092
172,210
Bank certificates of deposit (CDBs)
16,179
52,801
Equities
13,934
15,358
Cash (1)
-
75
Amounts deposited
1,184,051
1,162,122
Amounts that ensure clearing member/trader
participation
(990,900)
(989,200)
Excess collateral
193,151
172,922

(1)
The balance of collateral recorded in current liabilities refers to deposits in currency. The availability
of these funds is managed and their utilization is dependent on the fluctuation of the required margin
balance.
The minimum contribution for each clearing member is R$5,500, R$6,500 and R$7,500,
depending on whether this member is the holder of a type 1, type 2 or type 3 settlement right,
respectively, in the Derivatives Clearinghouse.

The minimum contribution for each commodities broker is R$6,000 for holders of full trading
rights. The minimum contribution of the holders of full trading rights of interest rates, exchange
rates and Ibovespa is R$4,000. The minimum contribution for the holders of the trading rights of
other contracts settled in the Derivatives Clearinghouse is R$3,000.

The minimum contribution for each special operator is R$1,600 for the holders of full trading
rights and restricted trading rights of interest rates, exchange rates and Ibovespa. For the holders
of trading rights of other contracts settled in the Derivatives Clearinghouse, the minimum
required contribution is R$1,000.

e.
Participation fund (Foreign Exchange Clearinghouse)

Formed by deposits, in assets and currencies, required for the authorization of participants in the
Foreign Exchange Clearinghouse. Their purpose is to guarantee performance of the obligations
assumed by them.

The Participation Fund presents the following position:
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 June 30, 2011
(All amounts in thousands of reais)
62
Composition
06/30/2011
12/31/2010
Federal Government Bonds
404,585
162,235
f.
Liquidation Fund of the of the clearing of stocks and fixed income (CBLC)
It consists of funds provided by the clearing agents CBLC, with the sole purpose of covering
losses arising from any default by the participants.
The Guarantor Fund presented the following position:
Composition
06/30/2011
12/31/2010
Federal government bonds
373,196
485,409
g.
Guarantee funds and Mechanism for reimbursement
BM&FBOVESPA maintains a Guarantee Fund, in the form of a statutory reserve, in the amount
of R$92,342 for the sole purpose of assuring its clients that hold trading and settlement rights the
reimbursement of certain losses provided for in the regulations.

The subsidiaries Bolsa Brasileira de Mercadorias and Bolsa de Valores do Rio de Janeiro
(BVRJ) also maintain Guarantee Funds, special purpose entities without a legal status. The
maximum liability of these Guarantee Funds is limited to the sum of their net assets.
BM&FBOVESPA Supervisão de Mercados - BSM manages a Mechanism for Reimbursement
of Losses, the sole purpose of which is to assure reimbursement of loss to clients of brokerage
firms that trade in BM&FBOVESPA upon the occurrence of events determined in the regulation.
The purpose of these funds is to assure that their members' clients are refunded for losses
resulting from errors in the execution of orders accepted and from inadequate or irregular use of
funds belonging to clients, under the terms of CVM Instruction 461/07.

We present below a summary of the main accounting balances of these mechanisms:
06/30/2011
12/31/2010
Equity of Mechanism of reimbursment of losses
312,885
372,789
Mechanism of reimbursment of losses
220,543
280,447
Guarantee Fund - BM&FBOVESPA
92,342
92,342
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 June 30, 2011
(All amounts in thousands of reais)
63
Guarantee Fund - Bolsa Brasileira de Mercadorias
827
792
Guarantee Fund - Bolsa de Valores do Rio de Janeiro
(3,161)
(2,468)

18
Employee Benefits

Stock options ­ BM&F S.A. (Transferred to BM&FBOVESPA)
At the AGE held on September 20, 2007, approval was given for an option plan for shares issued by
BM&F S.A. for the purpose of "granting purchase rights on a number of shares, for recognition and
retention of the employees of BM&F S.A. and, subsequently, of the Company, after May 8, 2008, up
to a limit of 3% of the Company's capital stock".

The stock options granted under the stock option purchase plan of the extinct BM&F were assumed
by BM&FBOVESPA, as decided at the AGE of May 8, 2008.

On December 18, 2007, 27,056,316 stock options were granted under the plan with a fixed exercise
price of R$1.00 per share. Subsequent to this date, no further stock options were granted or vesting
conditions changed under this plan. During the period, some employees acquired the rights to
exercise their options as a result of their dismissal. The number of stock options that have not yet
vested at June 30, 2011 totaled 3,264,546 options which did not acquire the condition of vesting yet.
The Plan was mainly devised to provide managers and employees of the former BM&F (i) with
consideration for services carried out by the beneficiaries during the period prior to the
demutualization process and also (ii) to retain professionals for a period of four years subsequent to
the approval of the Plan and IPO.

The main items used as a basis for acknowledging these services and for allocating the options
granted were:
(i)
Exercise price fixed at R$1.00;
(ii)
Right to exercise options even if the beneficiary is dismissed by the Company, as well as
on retirement, dismissal as a result of disability or death of the beneficiary;
(iii)
Number of years of service of each beneficiary;
(iv)
Different period for each exercise of options.

The Company recognized the expenses related to the stock options of employees that have not yet
vested, recognizing a total expense of R$3,637 during the half-year (R$9,661 at June 30, 2010) and
R$ 2,096 in the quarter (R$ 3,712 in 2010), with a counter-entry to capital reserves in shareholders'
equity. The Company considered in this calculation an estimated turnover of 5%, i.e. the estimated
number of options which will not vest due to employees who opt to leave the Company.

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 June 30, 2011
(All amounts in thousands of reais)
64
Stock options ­ BM&FBOVESPA's Plan

On May 8, 2008, at the AGE of BM&FBOVESPA, approval was given to institute a stock option
plan within the authorized limit of 2.5% of the Company's capital, having as its main objective to
align the interests of shareholders with those of directors, managers, employees and service providers
who are considered strategic, and employees considered as talents of BM&FBOVESPA and its
subsidiaries.

On December 19, 2008, the first series of options was granted at an exercise price of R$5.174 per
share, corresponding to the average closing price of trading in the 20 days that preceded the date on
which the options were granted, observing the vesting periods for exercising the options. 4,531,850
stock options were granted, distributed equally on four vesting dates over a four-year period.

Some employees that had stock options related to the series granted in 2008, acquired the rights to
exercise their options as a result of their dismissal. As a result of the acceleration of vesting in the
cases of dismissal, the Company recognized, during the period, the total expenses related to 962,050
stock options of the employees dismissed that otherwise would have been recognized in future
periods. At June 30, 2011, there are 779,122 stock options granted in 2008 that have not yet vested.

On January 20, 2009, the Board of Directors approved the 2009 stock option program ("2009
Program"), which set the date of grant on March 1, 2009. The exercise price of $ 6.60 per share
corresponds to the average closing price of 20 trading days preceding the date of the grant program in
2009, as established in the plan approved in the shareholders General Assembly on 8 May 2008.
The 2009 program refers to the period from January 1, 2009 to December 31, 2009, the base period
for the performance assessments of the program beneficiaries.

At the meeting on December 17, 2009, the Board confirmed the allocation of individual stock options
within the 2009 program, according to the performance assessment of the Company and the
beneficiaries, in the total amount of 9,947,000 stock options, divided into four qualifying dates
(vesting).

Some employees who had stock options related to the series granted in 2009 had the right to exercise
their options at the time of their dismissal. As a result of the acceleration of the vesting period in the
cases of dismissal, BM&FBOVESPA recognized in the period all the costs related to 117,500 stock
options of terminated employees that would have been recognized in future periods. On June 30,
2011 there are 4,288,500 stock options granted in 2009 that have not yet vested.

On February 23, 2010, the Board of Directors approved the 2010 stock option program ("2010
Program"), which set the date of grant on January 03, 2011. The exercise price of $ 12.91 per share
corresponds to the average closing price of 20 trading days preceding the date of the grant program in
2010, as established in the plan approved of the general shareholders meeting on May, 8 2008.
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 June 30, 2011
(All amounts in thousands of reais)