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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 September 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 the financial condition and
results of operations of BM&FBOVESPA S.A. (BM&FBOVESPA or Company or us) for the quarter
ended September 30, 2011 (3Q11).
OPERATING PERFORMANCE
Our operating performance in the quarter to September 2011 has been influenced, particularly
in the month of August, by widespread market volatility pushed by turmoil as the Eurozone debt
crisis deepened in the wake of the U.S. credit downgrade by a rating agency, and by changes in
the monetary policy by the Brazilian Central Bank and, in a turnaround move, fresh urgency in
slashing its key interest rate (trimming the benchmark Selic rate by 50 basis points). These
factors combined had a positive impact on the volumes of the period, as it will be described
later, and by the other hand, led to a reduction in the level of market capitalization of the listed
companies, in the public offerings activity and in the number of active investors in our
depository service.
As a consequence, the volume of trading on equities markets (Bovespa segment) went up 11.7%
from the prior-year third quarter to daily average of R$6,599.7 million. This surge is explained
also by a continuing rise in high frequency trading (HFTs) activity, which accounted for 10.3%
1
of
the overall volume for the segment in the quarter.
Meanwhile, the volume of contracts traded on derivatives markets comprising the BM&F
segment soared 15.5% from the year-ago quarter hitting daily average of 2,804.5 thousand. The
contract groups more actively traded in the period include BRL-interest rate futures contracts
and U.S. dollar-denominated interest rate futures contracts, besides the significant growth of
index-based contracts. The high frequency trading activity also grew, which in the quarter
accounted for 7.8% of the overall volume traded on derivatives markets.
Set forth below is a discussion and analysis of our operating performance.
Bovespa Segment
The average daily trading value (ADTV) for the segment in the quarter to September 2011
climbed 11.7% from the year-ago quarter and 6.3% quarter-on-quarter.
1
In calculating high frequency volume we take into account both the buy and sell sides of the trade (a division of total
volume by 2).
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.3.
Average Daily Value Traded (ADVT)
(In R$ millions, unless otherwise indicated)
Source: BM&FBOVESPA.
The average daily number of trades for the quarter soared 50.6% year over year and 24.6%
quarter on quarter resulting mainly from the increase in high frequency trading activity, which
main characteristic is to make a greater number of trades, with an average lower value per
trade.
Average Daily Number of Trades
Source: BM&FBOVESPA.
The average stock market capitalization
2
for the quarter to September 2011 gave back 1.3%
from the year-before quarter.
Average stock exchange capitalization and Turnover velocity
Source: BM&FBOVESPA.
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) .
3Q11
2Q11
3Q10
3Q11/2Q11
(%)
3Q11/3Q10
(%)
Stocks and Equity Deriv.
6,597.9
6,205.8
5,904.5
6.3%
11.7%
Cash market
6,216.8
5,857.3
5,508.2
6.1%
12.9%
Derivatives
381.1
348.5
396.4
9.4%
-3.8%
Forward market
93.4
121.3
132.0
-23.0%
-29.2%
Options market (stocks / indices)
287.8
227.2
264.4
26.6%
8.8%
Fixed income and other spot securities
1.8
1.3
1.3
39.2%
40.8%
Total
6,599.7
6,207.1
5,905.8
6.3%
11.7%
3Q11
2Q11
3Q10
3Q11/2Q11
(%)
3Q11/3Q10
(%)
Stocks and Equity Deriv.
627,727 503,616 416,700
24.6%
50.6%
Cash market
540,584 422,148 338,481
28.1%
59.7%
Derivatives
87,143
81,467
78,219
7.0%
11.4%
Forward market
975
1,277
1,390
-23.7%
-29.9%
Options market (stocks / indices)
86,168
80,190
76,829
7.5%
12.2%
Fixed income and other spot securities
13.66
13
12
2.7%
17.2%
Total
627,741 503,629 416,712
24.6%
50.6%
1.3
2.0
2.0
1.8
2.3
2.4
2.3
2.2
2.3
2.5
2.5
2.5
2.2
42.3%
56.4%
63.2%
66.6% 63.8% 63.7%
64.7%
69.2%
60.1% 61.8% 62.1% 59.7%
69.5%
0,0%
20,0%
40,0%
60,0%
80,0%
-
1,0
2,0
3,0
4,0
2006
2007
2008
2009
2010 9M11
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11
Average Market Capitalization (BRL trillions)
Turnover Velocity
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.4.
Based on a three-month average, turnover velocity
3
for the quarter hit 69.5%, the highest ratio
recorded for the seven most recent quarters, and compares with average 60.1% and 59.7% in
the quarters to September 2010 and June 2011, respectively. This sharp rise happened
particularly in August when turnover velocity struck 85.8%.
As a percentage of the overall volume traded on equities markets, foreign investors and local
institutional investors accounted for the larger shares at 34.6% and 33.4%, respectively,
followed by retail investors at 22.0% and financial institutions at 8.5%.
Allocation of average daily value traded by investor category
(In R$ billions)
Source: BM&FBOVESPA.
The net flow of foreign investments into our equities markets over the third quarter totaled
R$1.5 billion, below inflows for the prior quarter due primarily to fewer initial public offerings, as
foreign capital flown into the primary market fell to R$0.8 billion from R$4.3 billion earlier.
Additionally, despite a quarter-on-quarter jump in volume traded by these investors, foreign
capital flows into the secondary market declined as well.
Net flow of foreign investments into the equities markets
(In R$ billions)
Source: BM&FBOVESPA.
3
Turnover velocity is defined as the annualized ratio of turnover (value) of stocks traded on the cash market over a given
period to average market capitalization for the same period.
2.1
2.2
2.3
2.1
2.2
1.7
2.3
2.3
2.1
2.3
1.5
1.5
1.5
1.3
1.5
0.4
0.6
0.6
0.6
0.6
0.1
0.2
0.1
0.1
0.1
3Q10
4Q10
1Q11
2Q11
3Q11
Institutional Investors
Foreign Investors
Retail
Financial Insitutions
Companies and Others
BRL 5.9 bi
BRL 6.8 bi
BRL 6.7 bi
BRL 6.2 bi
BRL 6.6 bi
4.5
(0.1)
16.7
7.3
1.1
5.7
1.5
(0.2)
(2.7)
6.0
2.9
(2.6)
1.4
0.8
4.7
2.6
10.7
4.4
3.7
4.3
0.8
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
3Q11
Total
Secondary Market
Public Offerings
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.5.
In the quarter to September, the local equity offering market slowed, with a single initial public
offering and two follow-on offerings completed in the period to amass R$1.5 billion in gross
proceeds. Throughout the nine months period 21 offerings raised a R$16.3 billion in total (i.e.,
11 IPOs and 10 follow-on offerings with combined gross proceeds of R$7.2 billion and R$9.1
billion, respectively).
Equity offerings
4
(In R$ billions)
Source: BM&FBOVESPA.
Trading in ETFs over the third quarter hit average daily value of R$53.5 million soaring 90% from
the year-ago quarter and 51.3% sequentially. Dealings in BOVA11, the index fund that tracks the
Bovespa Index (Ibovespa), were the most actively traded, having accounted for 92.5% of the
quarterly volume of trading in ETFs. There are currently ten exchange-traded index funds listed
on our stock market, being two recently launched: ETF IT Now ISE (that tracks the Corporate
Sustainability Index ­ ISE) and ETF IT Now IGCT (that tracks the Corporate Governance Trade
Index ­ IGCT).
ETFs ­ Average daily trading value
(In R$ millions)
Source: BM&FBOVESPA.





4
Data on proceeds from the 2010 Petrobras offering do not include a R$74.8 billion oil reserves assignment the Brazilian
government and Petrobras have agreed in connection with the issue.
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
9.1
2004
2005
2006
2007
2008
2009
2010
2011
(until September)
IPO
Follow-On
30.4
70.1
34.3
46.0
74.4
16.3
8.8
13.9
70.1
74.4
24.9
28.9
28.2
32.1
39.5
35.4
53.5
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
3Q11
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.6.
High frequency trading - HFT activity within Bovespa segment
HFTs average daily trading value hit R$1,329.1 million (buy + sell sides) in third quarter,
accounting for 10.3%
5
of the overall average for the equity market. This performance translates
into a 149.4% upsurge in HFTs value as compared to November and December 2010 (when the
new pricing policy for high frequency traders was introduced) as well as a 47.9% rise from the
prior quarterly average. Moreover, at R$573.9 million, the average daily value traded in the
quarter on the basis of co-location arrangements
6
soared 151.8% quarter-on-quarter to
account for 4.3% of the overall average for the equities markets and 43.2% of the overall
volume attributable to HFTs.
HFT average daily value traded by category of investor (buy + sell sides)
Source: BM&FBOVESPA.
Securities lending
The average financial value of open positions at the end of the quarter to September 2011 hit
R$31.6 billion, a 51.7% rise from the year-ago quarter and 11.6% climb sequentially.
Securities lending
Source: BM&FBOVESPA.
5
In calculating high frequency volume we take into account both the buy and sell sides of the trade (a division of total
volume by 2).
6
Co-location arrangements are typically established with high frequency traders around a direct market access model (co-location)
we offer. Co-location is regarded as the most efficient way to access a market for providing better throughput and very low latency.
191.4
290.8
267.2
319.3
181.5
205.0
184.1
174.6
160.0
318.6
447.3
835.1
4.3%
6.1%
7.4%
10.3%
532.9
814.5
898.6
1,329.1
0,0%
20,0%
40,0%
60,0%
80,0%
100,0%
120,0%
140,0%
160,0%
-
200,0
400,0
600,0
800,0
1.000,0
1.200,0
1.400,0
Nov-Dec/10
1Q11
2Q11
3Q11
retail - day trading (BRL millions)
local institutions - day trading (BRL millions)
fgn inv - day trading (BRL millions)
% of overall market
6.6
18.5
16.9
12.7
20.5
28.5
19.0
19.9
20.8
22.4
25.8
28.3
31.6
22.6
47.4
52.3
59.3
81.0
116.3
69.6
83.0
86.3
84.9
108.9
112.8
127.3
-
20,0
40,0
60,0
80,0
100,0
120,0
140,0
-
5,0
10,0
15,0
20,0
25,0
30,0
35,0
40,0
2006
2007
2008
2009
2010
9M11
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
3Q11
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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.7.
BM&F Segment
Average daily trading volume for the segment in the quarter to September 2011 climbed 15.5%
from the year-ago quarter. This is due mainly to a 9.0% year-on rise in Brazilian-interest rate
futures contracts and by soaring volumes traded in stock index derivatives, which grew 69.9%.
In addition, the volume of transactions in mini-sized contracts jumped 103.3% from the third
prior-year quarter, Bovespa Index (Ibovespa) contracts being a highlight among them. This rise
correlates closely with heightened activity by HFTs. As a result, the high frequency volumes
traded in mini-sized contracts in the third quarter shot 116% from the year-ago quarter and
89.0% sequentially.
Average daily trading volume
(In thousands of contracts)
Source: BM&FBOVESPA.
In another attempt at curbing the Brazilian real appreciation against the U.S. dollar, on July 27,
2011, the Brazilian Government released the Provisional Measure No. 539, followed by the
Decree No. 7,536, extending its IOF tax on currency derivatives to levy increases in future
derivatives transaction based in short dollar exposures. However, the impact of this measure on
the volume of dealings in currency derivatives has yet to be properly measured on account to
sharp fluctuations in the Brazilian real to U.S. dollar exchange rate over the period since the tax
was introduced.
Volatility of the Brazilian real to U.S. dollar exchange rate
Source: BM&FBOVESPA.
The quarterly average rate per contract (RPC) for derivatives contracts dropped 4.7% from the
prior-year quarter due primarily to:
the reduction of the RPC for trades in U.S. dollar-denominated interest rate futures contracts
and FX contracts shrank 19.0% and 10.5%, respectively, was influenced mainly by the
3Q11
2Q11
3Q10
3Q11/2Q11
(%)
3Q11/3Q10
(%)
BRL Interest rate contracts
1,810.3
1,719.8
1,661.0
5.3%
9.0%
FX contracts
525.0
543.4
481.3
-3.4%
9.1%
Index-based contracts
143.4
101.4
84.4
41.4%
69.9%
USD Interest rate contracts
142.7
186.8
95.8
-23.6%
49.0%
Commodities derivatives
17.0
15.2
15.0
11.7%
13.6%
Mini-sized contracts
155.6
91.2
76.5
70.5%
103.3%
OTC derivatives
10.6
12.3
14.1
-14.4%
-25.2%
Total
2,804.5
2,670.2
2,428.1
5.0%
15.5%
0,00%
5,00%
10,00%
15,00%
20,00%
25,00%
30,00%
35,00%
A
p
r
-
09
M
a
y
-
09
J
u
n
-
09
J
u
l
-
09
A
u
g
-
09
S
e
p
-
09
O
c
t
-
09
N
o
v
-
09
D
e
c
-
09
J
a
n
-
10
F
eb
-
10
M
a
r
-
10
A
p
r
-
10
M
a
y
-
10
J
u
n
-
10
J
u
l
-
10
A
u
g
-
10
S
e
p
-
10
O
c
t
-
10
N
o
v
-
10
D
e
c
-
10
J
a
n
-
11
F
eb
-
11
M
a
r
-
11
A
p
r
-
11
M
a
y
-
11
J
u
n
-
11
J
u
l
-
11
A
u
g
-
11
S
e
p
-
11
Vol- DOL (R$/US$) Var. Margin
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.8.
appreciation of the Brazilian real between the two periods; and
a jump in comparative volume of trades U.S. dollar-denominated interest rate futures
contracts and mini-contracts (for which we charge lower fee rates), which accounted for
5.1% and 5.5% of the overall volume for the quarter to September 2011 versus 3.9% and
3.2%, respectively, in the year-ago quarter.
Evolution of average RPC - BM&F Segment
(In Brazilian reais)
Source: BM&FBOVESPA.
The quarterly volume traded by financial institutions in derivatives contracts dropped 4% year-
on-year, whereas their share of the overall trading volume declined to 33.5% over the quarter to
September 2011 from 42.3% one year ago. On the other hand, the overall volumes traded by
foreign investors and local institutional investors raised by 40.0% and 35.0%, respectively,
between the two quarters.
BM&F Segment ­ Allocation of average daily trading volume (ADTV) by investor category
(In thousands of contracts)
Source: BM&FBOVESPA.
HFT activity in the BM&F segment
The volume of HFT for derivatives markets hit 7.8% of the overall volume for the quarter to
September 2011 with 419.6 thousand average daily contracts traded (buy + sell sides). The
highlights were a 110% growth in volumes of FX contracts between the 3Q10 and the 3Q11 and
the increase of 116% in mini-contracts volumes traded by HFTs.
3Q11
2Q11
3Q10
3Q11/2Q11
(%)
3Q11/3Q10
(%)
BRL Interest rate contracts
0.981
0.930
0.951
5.5%
3.1%
FX contracts
1.780
1.847
1.989
-3.6%
-10.5%
Index-based contracts
1.500
1.753
1.499
-14.4%
0.1%
USD Interest rate contracts
0.871
0.893
1.076
-2.4%
-19.0%
Commodities derivatives
1.894
1.948
2.181
-2.8%
-13.2%
Mini-sized contracts
0.121
0.137
0.125
-11.2%
-3.0%
OTC derivatives
1.658
1.682
1.687
-1.4%
-1.7%
Total
1.112
1.127
1.167
-1.3%
-4.7%
1,026
1,100
1,248
1,060
939
730
863
906
852
937
544
515
560
590
727
91
94
97
114
143
36
44
53
54
57
2
1
1
500
1.000
1.500
2.000
2.500
3.000
3Q10
4Q10
1Q11
2Q11
3Q11
Financial Institutions
Institutional Investors
Foreign Investors
Retail
Companies
Central Bank
2,805
2,428
2,616
2,866
2,670
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.9.
HFT - Average daily trading volume (buy + sell sides)
(In thousands of contracts)
Source: BM&FBOVESPA.

DISCUSSION AND ANALYSIS OF CONSOLIDATED FINANCIAL PERFORMANCE
Main line items of the Income Statement
Revenues
Revenues of R$248.6 million within the Bovespa segment accounted for 45.4% of total gross
operating revenues. The combined revenues from trading and settlement activities jumped 5.1%
from the year-ago quarter rising to R$244.9 million. This increase is due to an 11.7% year-on rise
in volumes traded in the quarter attributable mainly to market volatility, as previously discussed.
However, this rise was partially offset by a retreat of our average basis points margin for the
segment, which went down to 5.708 bps from 6.162 bps one year ago, due primarily to increase
in HFT and in day-trading volumes, which enjoy fee discounts.
Other line items under revenues
from trading and settlement activities fell 91.1% comparatively with the quarter to September
2010 primarily because then we ascertained R$39.7 million in revenues from settlement
transactions on account of substantially large seasoned offerings carried out by Petrobras and
Banco do Brasil, compared to R$3.7 million in 3Q11.
Revenues of R$205.2 million from trading and settlement activities within the BM&F segment
accounted for 37.5% of total gross operating revenues, having climbed 9.9% from the same
quarter one year earlier. This climb is due primarily to a 15.5% year-on surge in average daily
volume traded in derivatives, but was not fully captured as revenue due to a 4.7% year-on fall in
quarterly average RPC attributable to higher volumes traded in U.S. dollar-denominated interest
rate futures and mini-contracts (for which we charge lower than average fee rates), coupled
with 11.5%
7
year-on appreciation of the Brazilian real against the U.S. dollar, which pushed the
RPC for U.S. dollar-denominated interest rate futures and FX contracts down as aforementioned.
7
Year-over-year exchange rate variation is calculated as the average fluctuation of the PTAX exchange rate as at the
end of June, July and August of 2010 and 2011, as these rates provide the basis on which to calculate average RPC for
the months of July, August and September 2010 and 2011.
2.7
4.9
42.5
17.1
9.8
24.4
154.8
70.5
77.3
67.0
101.1
148.3
50.3
39.3
37.7
43.5
45.3
68.2
92.5
82.7
93.4
83.6
94.8
178.7
2Q10
3Q10
4Q10
1Q11
2Q11
3Q11
Mini-sized contracts
Index-based contracts
FX contracts
BRL Interest rate contracts
5.0%
4.6%
5.0%
3.9%
6.3%
% in total ADTV
7.8%
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.10.
Other operating revenues unrelated to trading and settlement activities amounted to R$93.3
million and accounted for 17.0% of total gross operating revenues, a 13.1% increase from the
prior-year third quarter. Highlights include:
Securities lending. Revenue of R$19.8 million accounted for 3.6% of total gross operating
revenues and were up 56.1% from the earlier-year quarter mainly because of the higher
volume of lending services required in connection with open interest positions, whose overall
average financial value rose by 51.7% from the same quarter one year ago.
Depository - CSD services. Revenue of R$22.9 million accounted for 4.2% of total gross
operating revenues, a 6.6% rise from the prior-year third quarter, mainly as a result of 55.1%
increase in revenues from Tesouro Direto custody. On the other hand, there was a reduction
in revenue from depository services, down to R$17.1 million in 3Q11 from R$17.9 million in
3Q10, mainly due to a 2.2% reduction in the average number of custody accounts and 7.4%
in the average financial value of assets under custody
8
.
Market data sales. Revenue of R$16.2 million accounted for 3.0% of total gross operating
revenues and was up 5.7% from the prior-year quarter due primarily to a jump in number of
active customers of our market data services.
Operating expenses
Third quarter operating expenses totaled R$169.6 million rising 1.2% from the year-ago third
quarter. The main changes in line items under operating expenses are discussed below.
Personnel. Personnel expenses in 3Q11 amounted to R$81.0 million, representing a 12.9%
increase year-over-year mainly due to the following factors:
o
The average headcount increased by 15.0% year-over-year as the Company hired
additional staff in its IT department (including hiring outsourced IT personnel in 2010,
expenses for which were previously included in data processing expenses) and in the
Business Development and Promotion area; these expenses are in line with the
Company's growth strategy. It is worth to mention that the headcount of 2011 is not
increasing in comparison with the number approved for 2010 year-end.
o
The August 2011 salary increase required under the existing collective bargaining
agreement represented around 7% increase in payroll.
BM&FBOVESPA made improvements to its methodology for capitalizing certain personnel
costs as project costs, which led to an a reduction in personnel expenses compared to the
previous quarter. As a consequence of this improvements the amount capitalized as
investment in 3Q11 was R$8.4 million compared to R$5.5 million and R$5.0 million
capitalized in 1Q11 and in 2Q11, respectively. It is noteworthy that such expenses were
deferred and will result in a greater amount of depreciation in the coming years
Also, a R$3.2 million adjustment was made to 3Q11 personnel expenses to reconcile
expenses for 1Q11 and 2Q11 that should had been capitalized as investment. Finally, there
was a reduction in the Company's provisions for profit sharing by R$2.9 million (3Q11
compared with 2Q11), reflecting an updated earnings forecast for 2011 based on current
market conditions.
8
Not including the deposit and custody of ADRs and stocks held in custody for foreign investors.
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.11.
As a result of the above mentioned adjustments personnel expenses during 3Q11 fell 8.2%
compared to 2Q11.
Data processing. Data processing expenses for the quarter totaled R$25.3 million, down 7.7%
from the year-ago quarter due primarily to the internalization of previously outsourced IT
personnel, as discussed above.
Marketing and promotion. This expense line amounted to R$6.5 million shrinking 58.7% from
the third quarter one year ago, due mainly to declining quarterly expenses with our "Wanna
be a Shareholder?" (Quer ser sócio?) market popularization campaign.
Depreciation and amortization. Depreciation and amortization expenses totaled R$20.7
million and were up 37.3% from the year-ago quarter primarily on account of prior increase
in investments.
Other financial highlights
Cash, cash equivalents and financial investments
Cash and cash equivalents plus short- and long-tem financial investments amounted to R$3.5
billion at the end of the quarter to September 2011. This amount includes R$1.3 billion
attributable to third-party collateral pledged to our clearing facilities and R$467.9 million in
restricted funds tied to our clearing safeguard structure. Unrestricted cash and cash equivalents
and financial investments available for use at end of the quarter totaled R$1.5 billion.
Indebtedness
Quarter-end- indebtedness consisting of interest-bearing debt, as accruing interest payable,
amounted to R$1.1 billion, virtually all of it consisting of debt related to our July 2010 senior
notes issue.
Equity account
The quarter-end equity account for our investment in the CME Group amounted to R$28.3
million, up 22.3% from the quarter end one year ago, both as a result of the improvement in
profitability of the investee between the two periods and of the comparatively devalued
exchange rate at which we recognized our share of the profits of the CME Group at the end of
the quarter to September 2011.
Net interest income
Net interest income for the third quarter amounted to R$82.7 million, up 10.3% from the year-
ago quarter reflecting mainly an increase in average interest rates between the two periods.
Income tax and social contribution
This line item at the quarter end totaled R$143.2 million, where R$142.2 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 quarterly amortization
of goodwill for tax purposes, with no impact on cash;
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.12.
Recognition of deferred tax assets amounting to R$17.5 million, related to tax losses and
negative tax base generated in the first and second quarters, resulted mainly from payment
of interest on shareholders' equity.
The table below sets forth a breakdown of data on deferred income tax and social contribution.
(in R$ millions)
3Q11
(­) Deferred tax liabilities
-124.7
(-) Recognition of tax credits
-17.5
Deferred income tax and social contribution
-142.2
EBITDA
9
and net income
3Q11 EBITDA totaling R$347.5 million climbed 2.5% from the year-ago quarter, reflecting the
changes in revenues and expenses previously discussed. EBITDA Margin hit 70.4% as compared
to 69.2% in the third quarter one year earlier.
Net income for the quarter to September 2011 totaled R$292.0 million, down 0.3% from the
prior-year third quarter. This fall reflects the 1.2% increase in operating expenses and the 13.0%
growth in the income tax and social contribution, especially in the deferred tax and social
contribution.

In BRL thousands
EBITDA Reconciliation
3Q11
3Q10
%
GAAP net income
292,006
292,981
-0.3%
Minority interest
(76)
227
-133.5%
Income tax and social contribution
143,167
126,646
13.0%
Interest income, net
(82,654)
(74,930)
10.3%
Depreciation and amortization
20,686
15,067
37.3%
Equity accounting
(28,301) (23,142)
22.3%
Tax on dividends paid by associate (CME Group)
2,642 2,003
31.9%
EBITDA
347,470
338,852
2.5%
EBITDA Margin
70.4%
69.2%
113 bps
Capex ­ Capital expenditure
Investments capitalized in the quarter to September 2011 are on the order of R$42.5 million,
where R$36.8 million were invested in technology and R$5.7 million in other projects (including
projects related to assets as our facilities and equipment). Total capital expenditures at the end
of the nine-month period ended September 30, 2011, totaled R$115.5 million.
Main line items of the consolidated balance sheet statement as of September 30, 2011
Assets
Total assets
Pursuant to the consolidated balance sheet statement at the end of the quarter to September
30, 2011, BM&FBOVESPA S.A. had total assets amounting to R$23,145.0 million, representing a
2.3% increase from R$ R$22,634.0 at December 31, 2010.
9
Earnings before income, tax, depreciation and amortization.
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.13.
Cash and cash equivalents; financial investments
Cash and cash equivalents plus short- and long-term financial investments totaling R$3,508.1
million accounted for 15.2% of total assets. This amount includes mainly third-party collaterals
pledged to our clearing facilities in the amount of R$1,246.9 million and R$467.9 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$1,509.9 million (not including R$283.3 million in
financial resources of the subsidiaries), as compared to R$1,711.7 million at end-2010.
Noncurrent assets
Noncurrent assets totaled R$19,439.8 million, not including financial investments but including
R$176.8 million in long-term receivables, R$2,618.0 million in investments, R$352.4 million in
property and equipment and R$16,292.7 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 had
been appropriately stated, no adjustments to carrying value being required. Additionally,
management has not identified at this time (3Q11) any internal or external factors that would
change the December 2010 findings; therefore, given the absence of 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$1,605.2 million accounted for 6.9% of total liabilities and were
up 13.3% from December 31, 2010, when they accounted for 6.3% of total liabilities. This rise is
due primarily to a 28.0% increase in volume of cash collaterals pledged by market participants,
which went up to R$1,222.3 million from R$954.6 million earlier.
Noncurrent liabilities
Noncurrent liabilities at the quarter-end amounted to R$2,254.0 million, consisting mainly of
R$1,125.4 million in debt and R$1,061.4 million recorded under deferred income tax and social
contribution.
Shareholders' equity
Shareholders' equity totaled R$19,285.8 million, down slight 0.7% when compared to December
31, 2010. Shareholders' equity consists substantially of capital stock of R$2,540.2 million and
capital reserves of R$16,679.7 million.

OTHER FINANCIAL INFORMATION
Payouts
On November 8, 2011, our board of directors declared dividends amounting to R$233.6 million,
for payment to holders of record as of January 31, 2012, based on the ownership structure at
the book closure date of November 17, 2011.
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.14.
Share buyback program
Consistent with the share buyback program our board adopted in June 2011, which is set to end
on December 31, 2011, our Company has been authorized to repurchase up to 30 million shares.
Accordingly, over the period through October 2011 we repurchased 27.5 million shares at the
average price of R$9.18 per share.
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 September 30, 2011, the
aggregate of pledged collaterals totaled R$173.5 billion, 77.3% of which in the form of
government bonds and cash collateral.
Clearing facilities
In R$ billions
September 30,
2011
June 30,
2011
March 31,
2011
December 31,
2010
September 30,
2010
Derivatives
102.0
92.2
94.3
87.5
83.2
FX
3.4
4.6
7.0
3.9
5.2
Bonds
0.8
0.9
1.0
0.9
0.7
Equities(CBLC)
67.2
64.4
59.9
50.7
46.4
TOTAL
173.5
162.0
162.2
143.1
135.6
The balance of collaterals deposited at our clearing facilities went up 7.1% from the prior
quarter. The volume of collaterals pledged as security for transactions in derivatives climbed
significantly due primarily to a 10.6% rise in daily volume traded on derivatives markets.
Meanwhile, the growth in volume of collaterals posted as security for trades in equities is
explained by a surge in open positions at our securities lending facility. The central counterparty
activity is monitored by the Risk Committee of the Board, which is primarily charged with
conduct monitoring and evaluation of market, liquidity, credit and systemic risks managed by
the Company, with a strategic and structural focus.
Operational risk management
Operational risk exposures are monitored, assessed and managed primarily under leadership of
the people appointed to lead executive departments within the operating and managerial areas,
with guidance and monitoring performed by the internal audit and corporate risk office, under
supervision of the audit committee. The performance of this department, which has assumed
the activities of the auditing and corporate risk in a single area enables the identification,
monitoring and steadily evaluation of risks inherent to the processes of business information
technology and internal controlling systems of BM&FBOVESPA.
The strengthening of the management and monitoring of operational risk structure is in line
with the company´s strategy of offering the participants excellence in services and with the
safety needed in operations set in its markets.
Sustainability
The Company has announced, on September 5, 2011, the portfolio composition of the Carbon
Efficient Index (ICO2), valid from September to December 2011. The ICO2 was developed in
partnership with BNDES and consists of shares of the companies which underline the IBrX-50
Index which have agreed to participate in the initiative and adopt transparent practices with
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.15.
respect to their emissions of greenhouse emissions (GHGs). For the admission of the stock to the
portfolio composition of the ICO2 Index, the efficiency in GHG emissions and the free float of
each participating company are taken into account. The ICO2 is one of the initiatives that
comprise the New Value BOVESPA Sustainability program launched in 2010 with the mission to
lead, promote and practice the concepts and actions of economic responsibility, social and
environmental order to contribute to sustainable development.
OTHER HIGHLIGHTS
/
EVENTS AFTER THE REPORTING PERIOD
New pricing policy
BM&FBOVESPA announced the adoption of new pricing policies on August 26, 2011 for the
Bovespa segment and on October 31, 2011 for the BM&F segment. The policy in either case is
designed to eliminate cross subsidies embedded in fee rates across our trading and post-trade
business lines. In devising this new policy we were concerned to ensure it would have `neutral
effect' relative to overall cost-by-trade for market participants and end customers, as compared
to overall cost-by-trade under our old pricing structure. As a result of this rebalancing effort and
the implementation of our new policies, there was a rebalancing of the trading and post-trade
fees which each of the respective costs structures. The trading fee being now charged account
for average 30% of the overall cost-by-trade within the Bovespa segment and 40% within the
BM&F segment.
Alliance of BRICS Exchanges (Brazil, Russia, India, China and South Africa)
On October 13, 2011, the exchanges of the BRICS emerging market bloc announced a joint
initiative which will initially allow cross-listing of benchmark stock index derivatives on the
currencies of each alliance member. The initiative brings together BM&FBOVESPA, the Russian
MICEX, the National Stock Exchange of India (NSE), BSE Ltd (former Bombay Stock Exchange),
the Hong Kong Exchange as the Chinese initial representative and the Johannesburg Stock
Exchange of South Africa.
New product offerings
Market makers on single stocks. We have now completed bidding processes and announced
winning bidders to act as market makers for option on single stocks of four different issuers
and for options on the Bovespa Index (Ibovespa). An additional bidding process should be
completed to select market makers for options on single stocks of six additional issuers.
Brazilian Depositary Receipts (BDRs) ­ New listings. In the course of the third quarter, 10
unsponsored Level I BDR programs were launched and we announced the winning bidder
selected to launch 10 additional programs. With that, a total of 40 unsponsored Level I BDR
programs have been launched to date, and the BDRs are currently trading on our stock
market. In the coming weeks we plan to authorize and announce 30 additional programs.
ETFs. Two new ETFs began being traded starting late October to negotiate the ETF IT Now
ISE, referenced in the Corporate Sustainability Index (ISE), and ETF IT Now IGCT, referenced
in the Trade Corporate Governance Index (IGCT). With the launch, the number of index
funds now being traded on BM&FBOVESPA is ten.
Development of a multi-asset class electronic trading platform (PUMA Trading System)
The first stage of the multi-asset class electronic trading platform (developed in partnership with
the CME Group) have been now completed and implemented. This first stage consisted of
development, testing and implementation of the derivatives and `spot FX' module for the BM&F
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.16.
segment. The module is now fully operational.
T
he other stages of the project (equity trading
and fixed income assets) will be concluded in the second half of 2012.
Administrative restructuring
Over the quarter to September 2011 we implemented at BM&FBOVESPA an administrative
restructuring process whereby, given its size and importance for our business, the information
and technology and IT security departments, which previously operated under the chief
operations officer, now operate under the office of a chief information and technology officer
that is a member of the Executive Management. In addition, the departments in charge of
trading affairs, clearing and risk management activities now operate under the office of the chief
operations officer, whereas the product and issuer development departments now operate
under the chief business development officer.
Thus, under leadership of a Chief Executive Officer, our board of executive officers currently
includes a Chief Financial Officer (that also holds the position as Corporate Affairs and Investor
Relations Officer), a Chief Information and Technology Officer, a Chief Operations Officer and a
Chief Business Development Officer.
Integration of clearing facilities
In the second quarter we announced the development of CORE, or CloseOut Risk Evaluation, our
new central counterparty multi-asset, multi-market risk management framework, which will be
the linchpin on which our clearing and settlement risk management system architecture will be
based after we complete the integration of our four clearinghouses (equities, derivatives, FX and
bonds) into a single integrated clearing facility. The project is ongoing through the development
of the technology infrastructure of our future integrated clearing facility. This development has
been done in partnership with an international provider recently selected and hired. This
integration will mean more efficient clearing and settlement services benefitting the Company
and market participants as an integrated facility will allow for optimized use of cash and
collateral allocation through cross margining, while still adequately covering our exposure to
post-trade risks. The development of the integration project is set to complete by late 2012 and
implement in 2013.

INDEPENDENT AUDITORS
PricewaterhouseCoopers Auditores Independentes have been retained by BM&FBOVESPA to
perform independent auditing services in connection with the consolidated financial statements
of the Company and its subsidiaries.
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 may not hold executive or managerial
positions in the Company or its subsidiaries; (ii) the auditors may not 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.
From January to September 2011 neither the independent auditors not their related parties
have provided audit-unrelated services to us.
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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
September 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
Introduction
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 September 30, 2011, comprising the
balance sheet at September 30, 2011 and the statements of income and of comprehensive income
for the three and nine-month periods then ended, as well as the statements of changes in equity
and cash flows for the nine-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 nine-month period ended September 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 adequately
prepared, in all material respects, in relation to the parent company and consolidated interim
accounting information taken as a whole.

São Paulo, November 8, 2011


PricewaterhouseCoopers
Auditores Independentes
CRC 2SP000160/O-5


Luiz Antonio Fossa
Contador CRC 1SP196161/O-8
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BM&FBOVESPA S.A. - Bolsa de Valores, Mercadorias e Futuros
Balance Sheet
at September 30, 2011 and December 31, 2010
(In thousands of reais)
(A free translation of the original in Portuguese)
Assets
Notes
09/30/2011
12/31/2010
09/30/2011
12/31/2010
Current assets
3.097.862
3.010.770
2.198.367
2.547.589
Cash and cash equivalents
4 (a)
137.398
103.148
139.477
104.017
Financial investments
4 (b)
2.767.061
2.731.324
1.861.837
2.264.408
Accounts receivable
5
63.889
50.052
65.440
51.399
Other receivables
6
18.928
12.253
19.269
12.917
Taxes recoverable and prepaid
91.335
104.997
92.997
105.843
Prepaid expenses
18.698
8.996
18.794
9.005
Non-currente assets avaiable for sale
553
-
553
-
Non-current
19.824.854
19.410.211
20.946.600
20.086.386
Long-term receivables
493.710
478.878
1.683.593
1.216.812
Financial investments
4 (b)
319.995
331.676
1.506.816
1.066.920
Other receivables - net
6
555
626
2.755
2.827
Deferred income tax and social contribution
19
71.235
54.687
71.235
54.687
Judicial deposits
14 (g)
101.925
91.889
102.787
92.378
Investments
2.690.725
2.353.046
2.617.956
2.286.537
Interest in afiliates
7 (a)
2.580.878
2.248.325
2.580.878
2.248.325
Interest in subsidiaries
7 (a)
109.847
104.721
-
-
Investment property
7 (b)
-
-
37.078
38.212
Property and equipment
8
347.731
362.400
352.356
367.134
Intangible assets
9
16.292.688
16.215.887
16.292.695
16.215.903
Goodwill
16.064.309
16.064.309
16.064.309
16.064.309
Software and projects
228.379
151.578
228.386
151.594
Total assets
22.922.716
22.420.981
23.144.967
22.633.975
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
at September 30, 2011 and December 31, 2010
(In thousands of reais)
(A free translation of the original in Portuguese)
Liabilities and shareholders' equity
Notes
09/30/2011
12/31/2010
09/30/2011
12/31/2010
Current
1.404.186
1.220.283
1.605.163
1.416.204
Collateral for transactions
17
1.222.289
954.605
1.222.289
954.605
Earnings and rights on securities in custody
10
37.324
34.791
37.324
34.791
Suppliers
11.720
80.775
12.098
80.828
Salaries and social charges
61.169
63.177
61.930
64.351
Provision for taxes and contributions payable
11
23.004
23.683
23.706
23.981
Income tax and social contribution
-
2.586
3.671
5.576
Interest payable on debt issued abroad and loans
12
15.006
33.154
15.006
33.154
Dividends and interest on own capital payable
3.213
2.773
3.213
2.773
Other liabilities
13
30.461
24.739
225.926
216.145
Non-current
2.249.160
1.797.933
2.253.992
1.798.723
Debt issued abroad and loans
12
1.125.360
1.010.059
1.125.360
1.010.059
Deferred income tax and social contribution
19
1.061.434
732.074
1.061.434
732.074
Provision for contingencies and legal obligations
14
62.366
55.800
67.198
56.590
Shareholders' equity
15
19.269.370
19.402.765
19.285.812
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
16.679.727
16.662.480
16.679.727
16.662.480
Revaluation reserves
22.678
22.971
22.678
22.971
Revenue reserves
441.572
847.658
441.572
847.658
Treasury shares
(1.159.085)
(613.903)
(1.159.085)
(613.903)
Valuation adjustments
103.911
(88.680)
103.911
(88.680)
Additional Dividend proposed
235.336
32.000
235.336
32.000
Retained Earnings
404.992
-
404.992
-
19.269.370
19.402.765
19.269.370
19.402.765
Interest of non-controlling shareholders
-
-
16.442
16.283
Total liabilities and shareholders' equity
22.922.716
22.420.981
23.144.967
22.633.975
Consolidated
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
Statement of Income
Quarters ended September 30, 2011 and 2010
(In thousands of reais, unless otherwise stated)
(A free translation of the original in Portuguese)
2011
2010
Notes
3
rd
Quarter 2011
Accumulated
3
rd
Quarter 2010
Accumulated
Gross operating revenues
538.458
1.567.989
536.126
1.564.680
Trading and/or settlement system - BM&F
205.246
583.056
186.803
541.154
Derivatives
201.533
570.570
181.387
525.667
Foreign exchange
3.684
12.374
5.392
15.415
Assets
29
112
24
72
Trading and/or settlement system - Bovespa
248.626
740.916
274.812
790.615
Negotiation ­ trading fees
135.475
488.360
173.780
547.148
Transactions ­ clearing and settlement
109.406
229.305
59.110
191.624
Other
20
3.745
23.251
41.922
51.843
Other operating revenues
84.586
244.017
74.511
232.911
Loans of marketable securities
19.841
52.448
12.714
35.579
Listing of marketable securities
11.214
34.107
10.928
33.193
Depository, custody and back office
22.856
67.898
21.447
64.607
Trading participant access
11.119
35.667
11.317
37.194
Vendors ­ quotations and market information
16.221
48.746
15.351
51.798
Other
21
3.335
5.151
2.754
10.540
Deductions of revenue
(52.931)
(158.976)
(54.295)
(158.416)
PIS and COFINS taxes
(48.977)
(142.192)
(48.352)
(140.989)
Taxes on services
(3.954)
(16.784)
(5.943)
(17.427)
Net operating revenue
485.527
1.409.013
481.831
1.406.264
Operating expenses
(164.333)
(505.994)
(162.075)
(425.131)
Administrative and general
Personnel and related charges
(77.893)
(257.310)
(68.779)
(191.840)
Data processing
(24.205)
(69.254)
(26.510)
(70.722)
Depreciation and amortization
(20.244)
(51.748)
(14.618)
(34.544)
Outsourced services
(10.950)
(30.970)
(11.642)
(30.153)
Maintenance in general
(2.441)
(7.324)
(2.386)
(7.094)
Communications
(5.687)
(17.805)
(6.566)
(18.895)
Promotion and publicity
(6.356)
(30.171)
(15.671)
(30.523)
Taxes
(4.254)
(10.973)
(4.266)
(7.560)
Board and committee members' compensation
(1.655)
(4.603)
(1.507)
(4.385)
Sundry
22
(10.648)
(25.836)
(10.130)
(29.415)
Equity in income of investees
7
31.358
91.919
24.511
22.333
Financial results
23
81.633
213.968
74.475
215.535
Income before taxation of profit
434.185
1.208.906
418.742
1.219.001
Income tax and social contribution
19 (c)
(142.179)
(351.973)
(125.761)
(335.907)
Deferred
(142.179)
(351.973)
(125.761)
(335.907)
Net income for the period
292.006
856.933
292.981
883.094
Attributable to:
Shareholders of the parent
292.006
856.933
292.981
883.094
BM&FBOVESPA
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
Statement of Income
Quarters ended September 30, 2011 and 2010
(In thousands of reais, unless otherwise stated)
(A free translation of the original in Portuguese)
2011
2010
Notes
3
rd
Quarter 2011
Accumulated
3
rd
Quarter 2010
Accumulated
Gross operating revenues
547.140
1.593.941
544.086
1.585.129
Trading and/or settlement system - BM&F
205.246
583.056
186.802
541.154
Derivatives
201.533
570.570
181.387
525.667
Foreign exchange
3.684
12.374
5.391
15.415
Assets
29
112
24
72
Trading and/or settlement system - Bovespa
248.626
740.916
274.812
790.615
Negotiation ­ trading fees
135.475
488.360
173.780
547.148
Transactions ­ clearing and settlement
109.406
229.305
59.110
191.624
Other
20
3.745
23.251
41.922
51.843
Other operating revenues
93.268
269.969
82.472
253.360
Loans of marketable securities
19.841
52.448
12.714
35.579
Listing of marketable securities
11.214
34.107
10.928
33.193
Depository, custody and back office
22.856
67.898
21.447
64.607
Trading participant access
11.119
35.667
11.317
37.194
Vendors ­ quotations and market information
16.221
48.746
15.352
51.799
Bolsa Brasileira de Mercadorias - trading fees and contributions
1.135
4.897
1.762
3.932
Banco BM&F - banking fees
5.564
15.371
4.594
11.811
Other
21
5.318
10.835
4.358
15.245
Deductions of revenue
(53.440)
(160.445)
(54.743)
(159.640)
PIS and COFINS taxes
(49.370)
(143.296)
(48.683)
(141.895)
Taxes on services
(4.070)
(17.149)
(6.060)
(17.745)
Net operating revenue
493.700
1.433.496
489.343
1.425.489
Operating expenses
(169.558)
(525.034)
(167.561)
(444.839)
Administrative and general
Personnel and related charges
(80.950)
(266.575)
(71.687)
(199.776)
Data processing
(25.302)
(71.962)
(27.400)
(73.308)
Depreciation and amortization
(20.686)
(53.081)
(15.067)
(35.893)
Outsourced services
(11.719)
(32.809)
(12.293)
(32.056)
Maintenance in general
(2.619)
(7.833)
(2.529)
(7.543)
Communications
(5.741)
(18.003)
(6.622)
(19.063)
Promotion and publicity
(6.510)
(30.601)
(15.772)
(30.970)
Taxes
(4.324)
(11.218)
(4.353)
(7.838)
Board and committee members' compensation
(1.655)
(4.603)
(1.507)
(4.385)
Sundry
22
(10.052)
(28.349)
(10.331)
(34.007)
Equity in income of investees
7
28.301
87.933
23.142
23.142
Financial results
23
82.654
216.662
74.930
216.775
Income before taxation of profit
435.097
1.213.057
419.854
1.220.567
Income tax and social contribution
19 (c)
(143.167)
(355.644)
(126.646)
(337.924)
Current
(988)
(3.671)
(885)
(2.017)
Deferred
(142.179)
(351.973)
(125.761)
(335.907)
Net income for the period
291.930
857.413
293.208
882.643
Attributable to:
Shareholders of the parent
292.006
856.933
292.981
883.094
Non-controlling interest
(76)
480
227
(451)
15 (g)
Basic profit per share
0,150140
0,439702
0,146176
0,440734
Dilluted profit per share
0,150078
0,438217
0,145206
0,437768
Profit per share attributable to shareholders of the parent
(presentede in R$ per share)
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
Quarters ended September 30, 2011 and 2010
(In thousands of reais)
(A free translation of the original in Portuguese)
2011
2010
3
rd
Quarter 2011
Accumulated
3
rd
Quarter 2010
Accumulated
Net income for the quarter
292.006
856.933
292.981
883.094
Valuation adjustments
290.393
192.591
(82.102)
(143.128)
Mark to market of financial assets available for sale
-
-
(24.803)
(117.266)
Tax effects on mark to market of financial assets available for sale
-
-
8.433
39.870
Exchange variation on foreign investment in associate
407.844
264.818
(95.592)
(95.592)
Hedge of net investment abroad
(179.500)
(115.179)
42.412
42.412
Tax effects on hedge of net investment in a foreign operation
61.030
39.161
(14.420)
(14.420)
Other comprehensive income from foreign affiliate
1.019
3.791
1.868
1.868
Total comprehensive income for the quarter
582.399
1.049.524
210.879
739.966
Attributable to:
582.399
1.049.524
210.879
739.966
Shareholders of the parent
582.399
1.049.524
210.879
739.966
Statement of Comprehensive Income
BM&FBOVESPA
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
Quarters ended September 30, 2011 and 2010
(A free translation of the original in Portuguese)
(In thousands of reais)
(A free translation of the original in Portuguese)
2011
2010
3
rd
Quarter 2011
Accumulated
3
rd
Quarter 2010
Accumulated
Net income for the quarter
291.930
857.413
293.208
882.643
Valuation adjustments
290.393
192.591
(82.102)
(143.128)
Mark to market of financial assets available for sale
-
-
(24.803)
(117.266)
Tax effects on mark to market of financial assets available for sale
-
-
8.433
39.870
Exchange variation on foreign investment in associate
407.844
264.818
(95.592)
(95.592)
Hedge of net investment abroad
(179.500)
(115.179)
42.412
42.412
Tax effects on hedge of net investment in a foreign operation
61.030
39.161
(14.420)
(14.420)
Other comprehensive income from foreign affiliate
1.019
3.791
1.868
1.868
Total comprehensive income for the quarter
582.323
1.050.004
211.106
739.515
Attributable to:
582.323
1.050.004
211.106
739.515
Shareholders of the parent
582.399
1.049.524
210.879
739.966
Non-controlling interest
(76)
480
227
(451)
CONSOLIDATED
Statement of Comprehensive Income
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
Statement of Changes in Shareholders' Equity
Quarter ended September 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
Notes
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
Reduction of non-controling shares
-
-
-
-
-
-
-
-
-
-
(321)
(321)
Exchange variation on foreign investment
-
-
-
-
-
-
264.818
-
-
264.818
-
264.818
Hedge of net investment, net of tax
-
-
-
-
-
-
(76.018)
-
-
(76.018)
-
(76.018)
Effect of comprehensive income of overseas affiliate
-
-
-
-
-
-
3.791
-
-
3.791
-
3.791
Total other comprehensive income
-
-
-
-
-
-
192.591
-
-
192.591
-
192.591
Realization of revaluation reserve - subsidiaries
-
-
(293)
-
-
-
-
-
-
(293)
-
(293)
Repurchase of shares
-
-
-
-
-
(584.962)
-
-
-
(584.962)
-
(584.962)
Disposal of treasury shares - exercised options
18
-
(25.964)
-
-
-
39.780
-
-
-
13.816
-
13.816
Recognition of stock option plan
18
-
43.211
-
-
-
-
-
-
-
43.211
-
43.211
Approval/Payment of additional dividends proposed
15(f)
-
-
-
-
(406.086)
-
-
(32.000)
-
(438.086)
-
(438.086)
Net income for the period
-
-
-
-
-
-
-
-
856.933
856.933
480
857.413
Appropriation of net income:
Dividends
15(f)
-
-
-
-
-
-
-
235.336
(301.941)
(66.605)
-
(66.605)
Interest on own capital
15(f)
-
-
-
-
-
-
-
-
(150.000)
(150.000)
-
(150.000)
At September 30, 2011
2.540.239
16.679.727
22.678
3.453
438.119
(1.159.085)
103.911
235.336
404.992
19.269.370
16.442
19.285.812
Atributable to shareholders of the parent
Revenue Reserve
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 Changes in Shareholders' Equity
Quarter ended September 30, 2010
(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, 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
Mark to market adjustment of financial assets available for sale
-
-
-
-
-
-
(77.396)
-
-
(77.396)
-
(77.396)
Exchange variation on foreign investment
-
-
-
-
-
-
(95.592)
-
-
(95.592)
-
(95.592)
Hedge of net investment, net of tax
-
-
-
-
-
-
27.992
-
-
27.992
-
27.992
Effect of comprehensive income of overseas affiliate
-
-
-
-
-
-
1.868
-
-
1.868
-
1.868
Total other comprehensive income
-
-
-
-
-
-
(143.128)
-
-
(143.128)
-
(143.128)
Realization of revaluation reserve - subsidiaries
-
-
(435)
-
-
-
-
-
-
(435)
-
(435)
Repurchase of shares
-
-
-
-
-
(187.763)
-
-
-
(187.763)
-
(187.763)
Disposal of treasury shares - exercised options
-
(15.382)
-
-
-
27.851
-
-
-
12.469
-
12.469
Recognition of stock option plan
-
21.500
-
-
-
-
-
-
-
21.500
-
21.500
Approval/Payment of additional dividends proposed
-
-
-
-
-
-
-
(20.000)
-
(20.000)
-
(20.000)
Effect of impairment reversal net of tax
-
-
-
-
-
-
-
-
460.610
460.610
-
460.610
Replenishment of reserves due to Impairment reversal
-
174.229
-
3.453
282.928
-
-
-
(460.610)
-
-
-
Net income for the period
-
-
-
-
-
-
-
-
883.094
883.094
(451)
882.643
Appropriation of net income:
Dividends
-
-
-
-
(248.000)
-
-
-
(198.600)
(446.600)
-
(446.600)
Interest on own capital
-
-
-
-
-
-
-
-
(272.000)
(272.000)
-
(272.000)
At September 30, 2010
2.540.239
16.672.607
23.116
3.453
438.119
(390.014)
(65.732)
-
412.494
19.634.282
15.905
19.650.187
Revenue reserves
Atributable to shareholders of the parent
The accompanying notes are an integral part of this Financial Statements.
11
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BM&FBOVESPA S.A. - Bolsa de Valores, Mercadorias e Futuros
Nine month periods ended September 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
856.933
883.094
857.413
882.643
Adjustments for:
Depreciation and amortization
51.748
34.544
53.081
35.893
Profit on sale of property and equipment
(207)
(5)
(221)
(5)
Deferred income tax and social contribution
351.973
335.907
351.973
335.907
Equity in results of subsidiaries
(91.919)
(22.333)
(87.933)
(23.142)
Expenses related to the stock option plan
43.211
21.500
43.211
21.500
Interest expense
50.546
14.030
50.546
14.030
Variation in financial investments and collateral for transactions
243.628
(248.346)
230.359
(265.429)
Variation in taxes recoverable and prepaid
13.662
(35.332)
12.845
(35.927)
Variation in accounts receivable
(13.837)
(15.507)
(14.041)
(15.605)
Variation in other receivables
(6.602)
(3.032)
(6.600)
(627)
Variation in prepaid expenses
(9.702)
(3.124)
(9.789)
(3.183)
Variation in judicial deposits
(10.036)
(5.986)
(10.409)
(5.109)
Variation in earnings and rights on securities in custody
2.533
1.515
2.533
1.515
Variation in suppliers
(69.055)
14.008
(68.730)
13.910
Variation in provision for taxes and contributions payable
(679)
1.284
(275)
1.360
Variation in provisions for income tax and social contribution
(2.586)
(886)
(1.905)
(1.571)
Varition in salaries and social charges
(2.008)
5.883
(2.421)
6.040
Variation in other liabilities
5.722
62.713
9.781
73.435
Variation in provision for contingencies
6.566
5.474
10.607
5.642
Net cash provided by operating activities
1.419.891
1.045.401
1.420.025
1.041.277
Cash flows from investing activities
Receipt on sale of property and equipment
3.663
412
3.618
290
Payment for purchase of property and equipment
(32.945)
(74.089)
(33.257)
(74.391)
Payment for purchase of investment - CME
-
(1.075.119)
-
(1.075.119)
Dividends received
23.989
13.540
23.989
13.540
Capital increase in subsidiaries
(1.433)
(2.650)
-
-
Acquisition of softwares and projects
(84.946)
(64.338)
(84.946)
(64.338)
Net cash (used in) provided by investing activities
(91.672)
(1.202.244)
(90.596)
(1.200.018)
Cash flows from financing activities
Disposal of treasury shares - stock options exercised
13.816
12.469
13.816
12.469
Repurchase of shares
(584.962)
(187.763)
(584.962)
(187.763)
Variation in financing
(753)
(6.476)
(753)
(6.476)
Debt issued
-
1.069.406
-
1.069.406
Interest paid
(67.819)
-
(67.819)
-
Payment of dividends and interest on own capital
(654.251)
(736.784)
(654.251)
(736.784)
Net cash used in financing activities
(1.293.969)
150.852
(1.293.969)
150.852
Net increase in cash and cash equivalents
34.250
(5.991)
35.460
(7.889)
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
137.398
40.755
139.477
42.890
Statement of Cash Flows
The accompanying notes are an integral part of this Financial Statements.
12
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BM&FBOVESPA S.A. - Bolsa de Valores, Mercadorias e Futuros
Statement of Value Added
Nine month periods ended September 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
1.567.989
1.564.680
1.593.941
1.585.129
Trading and/or settlement system
1.323.972
1.331.769
1.323.972
1.331.769
Other operating revenues
244.017
232.911
269.969
253.360
2 ­ Goods and services acquired from third parties
181.360
186.802
189.557
196.947
Operating expenses (a)
181.360
186.802
189.557
196.947
3 ­ Gross value added (1-2)
1.386.629
1.377.878
1.404.384
1.388.182
4 - Retentions
51.748
34.544
53.081
35.893
Depreciation and amortization
51.748
34.544
53.081
35.893
5 ­ Net value added produced by the company (3-4)
1.334.881
1.343.334
1.351.303
1.352.289
6 ­ Value added transferred from others
359.512
258.046
359.401
261.088
Equity in results of subsidiaries
91.919
22.333
87.933
23.142
Financial income
267.593
235.713
271.468
237.946
7 ­ Total value added to be distributed (5+6)
1.694.393
1.601.380
1.710.704
1.613.377
8 - Distribution of Value Added
1.694.393
1.601.380
1.710.704
1.613.377
Personnel and related charges
257.310
191.840
266.575
199.776
Board and committee members' compensation
4.603
4.385
4.603
4.385
Income tax, taxes and contributions (b)
521.922
501.883
527.307
505.402
Financial expenses
53.625
20.178
54.806
21.171
Interest on own capital and dividends
451.941
470.600
451.941
470.600
Constitution of statutory reserves
404.992
412.494
405.472
412.043
(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.
13
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14
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 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.
background image
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
15

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.

The subsidiaries BM&FBOVESPA UK Ltd., located in London, and BM&F USA Inc., 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.

2
Preparation and Presentation of the financial statements

This financial statements were approved by the Board of Directors of BM&FBOVESPA on
November 08, 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 inforations
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
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).
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
16
(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.
(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.
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
17
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 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
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
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
18
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 services and those from the trading and 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.

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
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
19
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".

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
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
20
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.
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.
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
21
Amortization expense is recognized in income unless it is included in another asset amount. In
such cases, amortization of intangible assets used for development activities is included as part of
the cost of the other intangible asset.
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
the cost of the item can be measured reliably. All other repairs and maintenance are recorded in
income, when incurred.
Depreciation expense is recognized in income unless it is included in the carrying amount of
another asset. Depreciation of fixed assets used for development activities is included as part of
the cost of an intangible asset.


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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
22
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.
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
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
23
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 has no defined benefit plans. The Company offers its employees a defined
contribution plan and pays contributions on contractual or voluntary bases. Once the
contributions have been made, the 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.
(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
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
24
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
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.
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
25
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
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
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
26
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
Operating segments are 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
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).
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
27
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
9/30/2011
12/31/2010
Banks - deposits in domestic currency
90
3,277
Banks - deposits in foreign currency
137,308
99,871
Total
137,398
103,148
Consolidated
Details
9/30/2011
12/31/2010
Banks - deposits in domestic currency
887
3,622
Banks - deposits in foreign currency
138,590
100,395
Total
139,477
104,017
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
28
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
09/30/2011
12/31/2010
Details
Financial investment funds (1)
2,611,524
­
­
­
­
2,611,524
1,676,725
Securities purchased under resell agreements
­
­
2,055
­
­
2,055
935,617
Financial Treasury Bills
­
102,461
40,501
319,377
­
462,339
425,568
Other investments
9,838
­
682
618
­
11,138
25,090
Total financial investments
2,621,362
102,461
43,238
319,995
-
3,087,056
3,063,000
Short term
2,767,061
2,731,324
Long term
319,995
331,676
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
09/30/2011
12/31/2010
Details
Financial investment funds (2)
202,157
­
­
­
­
202,157
204,740
Securities purchased under resell agreements
­
1,335,124
25,542
­
­
1,360,666
1,852,090
Financial Treasury Bills
­
168,695
116,969
1,310,528
61,154
1,657,346
1,235,529
National Treasury Bills
­
­
2,320
126,968
­
129,288
4,138
Other investments
9,838
­
1,192
8,166
­
19,196
34,831
Total financial investments
211,995
1,503,819
146,023
1,445,662
61,154
3,368,653
3,331,328
Short term
1,861,837
2,264,408
Long term
1,506,816
1,066,920
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
29
(1)
Investments in funds that invest in quotas of other financial investment funds, the
portfolios of which mainly comprise investments in federal government bonds, securities purchased
under resell agreements and bank certificates of deposit and have the CDI as their profitability
benchmark. The balances presented in the table of BM&FBOVESPA also include the exclusive
investment funds which were consolidated in the financial statements according to the nature of the
portfolio.
The net assets of the exclusive investment funds included in the process of consolidation of the
quarterly information are: (i) Supremo Renda Fixa
- FICFI - R$
277,852
(R$
258,625
at December 31,
2010), (ii) Bradesco FI Multimercado Letters - R$
1,750,039
(R$
723,402
at December 31, 2010); (iii)
Megainvest FICFI Renda Fixa - R$
458,174 (R$ 629,049
at December 31, 2010).

The main investment fund not consolidated is
Bradesco Empresas FICFI Referenciado DI Federal, in the
amount of R$202.144 (R$204.669 at December 31, 2010).
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.

Bank certificates of deposit (CDB) and securities purchased under resell agreements (guaranteed by
Federal Government Bonds) ­ calculated at amounts adjusted to the balance sheet date, based on
contractual interest, indexed to the CDI/Selic rate.
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
30
As directed by CPC40/IFRS7, 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,
hedge accounting is not adopted.

The net result from derivative transactions and the related financial instrument refers to the short
position contracts for future interest rates, with market value R$ 338 (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)
09/30/2011
12/31/2010
Risk factor
Risk
Percentual
Percentual
CDI
Falling CDI
99.05%
99.35%
Fixed interest rate
Rising fixed rate
0.01%
0.35%
USD
Falling dollar
0.65%
0.05%
Gold price
Falling gold
0.29%
0.25%
100.00%
100.00%

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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
31
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.

We present in the table below, as required by the CVM, 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
43,267
64,295
84,942
105,225
125,158
Index rates
CDI/Selic
5.25%
7.88%
10.51%
13.13%
15.76%
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, considering the amounts
involved as presented in the table of Risk Factors (Consolidated), the effects on the portfolio are not
considered material.

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

In addition to the amounts payable and receivable in foreign currencies, the Company has third-party
deposits in foreign currency to guarantee the settlement of transactions by foreign investors and also
own funds in currency abroad. At September 30, 2011 the Company's net foreign currency exposure
amounted to R$21,802 (negative by 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.
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
32

Inflation index and gold position

Considering the amounts and percentages involved, as detailed in the table of Risk Factors
(Consolidated), the effects on the portfolio are not considered material.
5
Accounts Receivable

The breakdown of accounts receivable is as follows:
BM&FBOVESPA
Details
9/30/2011
12/31/2010
Trading, other fees receivable
25,904
16,312
Annuity
10,049
4,477
Vendors ­ Signal broadcast
9,516
10,599
Trustee and custodial fees
9,421
17,585
Other accounts receivable
15,796
6,971
Provision for doubtful accounts
(6,797)
(5,892)
Total
63,889
50,052
Consolidated
Details
9/30/2011
12/31/2010
Trading, other fees receivable
26,778
17,069
Annuity
10,049
4,477
Vendors ­ Signal broadcast
9,516
10,599
Trustee and custodial fees
9,421
17,585
Other accounts receivable
16,473
7,561
Provision for doubtful accounts
(6,797)
(5,892)
Total
65,440
51,399
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
33
The amounts presented above are primarily denominated in Brazilian reais, approximately 90% is
represented by receivables falling due within 60 days, except for annuities.
On September 30, 2011,
and the amounts over 90 days amounted to R$ 7,239.

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.

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
2,626
Reversals
(1,721)
At September 30, 2011
6,797
6
Other Receivables

Other receivables comprise the following:
BM&FBOVESPA
09/30/2011
12/31/2010
Current
Advances to employees (1)
5,519
1,457
Amounts receivable - related parties (note 16)
10,703
8,134
Warehouse
1,533
1,527
Other
1,173
1,135
Total
18,928
12,253
Non-current
Other
555
626
Total
555
626
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
34

Consolidated
09/30/2011
12/31/2010
Current
Advances to employees (1)
5,591
1,523
Linked Credits
512
557
Amounts receivable - related parties (note 16)
9,744
7,448
Warehouse
1,533
1,527
Other
1,889
1,862
Total
19,269
12,917
Non-current
Brokers in liquidation (2)
2,200
2,200
Other
555
627
Total
2,755
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 September 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
Adjusted
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.
48,310
24,000
3,375
100
48,310
44,935
3,375
3,117
Bolsa Brasileira de Mercadorias
17,598
405
1,614
50,12
8,820
8,011
809
(174)
Bolsa de Valores do Rio de
Janeiro - BVRJ
58,725
115
(84)
86,95
51,061
51,427
(73)
(1,288)
BM&F USA Inc.
679
1,000
(420)
100
679
348
(420)
(2,464)
BM&FBOVESPA UK Ltd. (1)
977
1,000
295
100
977
-
295
-
109,847
104,721
3,986
(809)
Affiliate
CME Group, Inc. (2)
38,690,758
66,119
1,725,444
5,14
2,580,878
2,248,325
87,933
23,142
Total
2,690,725
2,353,046
91,919
22,333

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&FBOVESP
A UK Ltd.
CME
Group,
Inc.
Assets
249,131
19,375
64,063
780
1,081
72,113,165
Liabilities
200,821
1,777
5,338
101
104
33,422,408
Revenue
8,171
2,964
1,646
1,006
1,740
4,161,384

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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 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
3,375
809
(73)
(420)
295
87,933
91,919
Exchange rate (3)
-
-
-
-
-
264,818
264,818
Reflex effect on affiliate
-
-
-
-
-
3,791
3,791
Realization of the revaluation
reserve
-
-
(293)
-
-
-
(293)
Capital increase
-
-
-
751
682
-
1,433
Dividends received
-
-
-
-
-
(23,989)
(23,989)
At September 30, 2011
48,310
8,820
51,061
679
977
2,580,878
2,690,725
At June 30, 2011
46,826
8,977
50,520
500
114
2,152,520
2,259,457
Equity
1,484
(157)
688
179
863
28,301
31,358
Exchange rate (3)
-
-
-
-
-
407,844
407,844
Reflex effect on affiliate
-
-
-
-
-
1,019
1,019
Realization of the revaluation
reserve
-
-
(147)
-
-
-
(147)
Dividends received
-
-
-
-
-
(8,806)
(8,806)
At September 30, 2011
48,310
8,820
51,061
679
977
2,580,878
2,690,725
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
37
(1)
On February, 1
st
2011, became controlled directly by BM&FBOVESPA.
(2)
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 strategic aspects of the partnership between the two companies
indicate the existence of significant influence of BM&FBOVESPA on CME Group.
The
fair value of the investment at September 30, 2011, based on the market price of shares is
R$ 1,551,506. To the impairment analysis, the management used the discounted cash
flow criteria, in accordance with the accounting pronouncement CPC 01, whose results
did not indicate the need of reduction of the recoverable amount of the investment in
CME Group.
(3)
From July 2010, the BM & FBOVESPA conducted an operation to protect (hedge of net
investment) part of the exchange risk through the designation of a non-derivative
financial instrument (debt issuance abroad), as presented in Note 12. Below we present
the impact on equity (other comprehensive income) from the exchange variation of the
unhedged portion of the investment, according to the scenarios of CVM Instruction
475/08:
Impact on Equity (3 month scenario)
Falling dollar
Higher dollar
-50%
-25% 09/30/2011
25%
50%
Exchange rate
0.9272 1.3908 1.8544 2.3180 2.7816
Exchange variation on foreign investment in
affiliate
(1,027,244) (382,819) 264,818 906,032 1,550,457
Exchange variation on hedge of overseas net
investment
452,268
168,545 (115,179)

(398,902) (682,625)
Tax effect on exchange variation on hedge of
overseas net investment
(153,771) (57,305) 39,161 135,627 232,092
Net effect
(728,747) (271,579) 188,800 642,757 1,099,924



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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
38
b.
Investment Property

This category comprises by 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 25 years.
Consolidated
At December 31, 2010
38,212
Depreciation
(1,134)
At September 30, 2011
37,078

8
Property and Equipment
BM&FBOVESPA
Details
09/30/2011
12/31/2010
Cost
Depreciation
Net
Net
Buildings
217,326
(99,598)
117,728
120,037
Furniture and fixtures
42,799
(27,035)
15,764
14,619
Apparatus and computer equipment
323,009
(203,984)
119,025
143,908
Facilities
63,968
(16,184)
47,784
41,148
Telephone system
4,258
(2,759)
1,499
1,567
Other
72,453
(40,834)
31,619
28,384
Construction in progress
14,312
-
14,312
12,737
Total
738,125
(390,394)
347,731
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 September 30, 2011
(All amounts in thousands of reais)
39
Consolidated
Details
09/30/2011
12/31/2010
Cost
Depreciation
Net
Net
Buildings
219,663
(100,388)
119,275
121,649
Furniture and fixtures
43,319
(27,451)
15,868
14,760
Computer equipment
323,905
(204,793)
119,112
144,027
Facilities
65,008
(16,780)
48,228
41,640
Telephone system
4,258
(2,759)
1,499
1,567
Other
74,968
(40,905)
34,063
30,754
Construction in progress
14,311
-
14,311
12,737
Total
745,432
(393,076)
352,356
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
experts, has not indicated the need for adjustments to the value of goodwill at December 31, 2010. In
accordance with CPC 21/IAS 34, 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 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 September 30, 2011
(All amounts in thousands of reais)
40
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
09/30/2011
12/31/2010
Cost
Amortization
Net
Net
Cost of software development
145,934
-
145,934
63,931
Concluded software development
10,282
(2,652)
7,630
9,582
Softwares
198,484
(123,669)
74,815
78,065
Total
354,700
(126,321)
228,379
151,578
Consolidated
Details
09/30/2011
12/31/2010
Cost
Amortization
Net
Net
Cost of software development
145,934
-
145,934
63,931
Concluded software development
10,282
(2,652)
7,630
9,582
Softwares
199,699
(124,877)
74,822
78,081
Total
355,915
(127,529)
228,386
151,594

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.


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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
41
11
Provision for Taxes and Contributions Payable
BM&FBOVESPA
Details
09/30/2011
12/31/2010
Withholding taxes and contributions payable
5,363
6,066
PIS/Cofins
15,990
15,490
ISS (Municipal service tax)
1,651
2,127
Total
23,004
23,683
Consolidated
Details
09/30/2011
12/31/2010
Withholding taxes and contributions payable
5,891
6,209
PIS/Cofins
16,122
15,607
ISS (Municipal service tax)
1,693
2,165
Total
23,706
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 September 30, 2011 is R$ 1,140,319 ( R$ 1,040,238 at December 31, 2010), which
includes the amount of R$ 14,959 (R$30,179 at December 31,2010) of accrued interest. 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).
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
42
These notes have been designated as a hedging instrument for the portion equal to US$ 612 million
(notional) of the investment in CME Group Inc. (Note 7), in order to protect the exchange rate risk.
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 September
30, 2011.

The fair value of debt, calculated with market data, is R$ 1,131,976 at September 30, 2011 (Source:
Bloomberg).

Additionally, the Company has financial leases of computer equipment. The balance at September 30,
2011 is R$ 47 (R$ 2,975 at December 31, 2010), maturing in 2011.

13
Other liabilities
BM&FBOVESPA
Details
09/30/2011
12/31/2010
Unearned revenue - Annuity
11,137
-
Custody agents
4,686
4,413
Liability for purchase of treasury shares
2,634
6,470
Amounts payable - related parties (Note 16)
2,418
2,652
Third parties services
2,552
2,081
Payable preferred shares (1)
1,839
1,839
Electricity, water and telephone
731
705
Other
4,464
6,579
Total
30,461
24,739



background image
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
43
Consolidated
Details
09/30/2011
12/31/2010
Unearned revenue - Annuity
11,137
-
Custody agents
4,686
4,413
Liability for purchase of treasury shares
2,634
6,470
Demand deposits (2)
77,112
50,373
Liabilities for securities purchased under resell
agreements (2)
118,961
141,988
Outsourced services
2,777
2,239
Payable preferred shares (1)
1,839
1,839
Electricity, water and telephone
731
705
Other
6,049
8,118
Total
225,926
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.

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
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(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
44
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
916
3,702
-
4,637
Reversals
(61)
(381)
-
-
(442)
Reassessment of contingent risks
(100)
(357)
-
-
(457)
Price-level restatement
326
490
909
1,091
2,828
At September 30, 2011
4,398
6,463
37,634
13,871
62,366
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
1,409
3,702
-
8,723
Reversals
(107)
(453)
-
-
(560)
Reassessment of contingent risks
(100)
(459)
-
-
(559)
background image
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
45
Price-level restatement
438
540
909
1,105
3,004
At September 30, 2011
8,100
7,233
37,634
14,231
67,198

According to the characteristic of provisions there is no cash disbursement forecast.
e.
Possible losses
The proceedings classified as a "possible loss" are so classified as a result of uncertainties
surrounding their outcome. They are lawsuits for which jurisprudence has not yet been defined or
which still depend on verification and analysis of the facts, or even involve specific aspects that
reduce the chances of loss.

BM&FBOVESPA and its subsidiaries have tax, civil and labor lawsuits involving risks of loss
classified by management as possible, based on the evaluation of their legal advisors, for which
no provision has been recorded. These proceedings comprise mainly the following:
Labor proceedings, mainly claims filed by employees of outsourced service providers, on
account of alleged noncompliance with labor legislation. The amounts related to the lawsuits
classified as possible at September 30, 2011 are R$ 55,865 in the parent company (R$ 32,749
at December 31, 2010) and R$ 57,987 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 September 30,
2011 is R$ 62,404 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
cancellation of the shares in the former BM&F is found to be illegal, as alleged by a
commodities broker in bankruptcy;
The tax proceedings of BM&FBOVESPA and its subsidiaries mainly involve a dispute over
the classification of exchanges as subject to the payment of social contributions. Most of
these amounts are related to two lawsuits filed by BM&FBOVESPA against the Federal
Government arguing that the Company was not subject to the payment of social contributions
prior to the 1999 fiscal year. The amount involved in the aforementioned proceedings as of
September 30, 2011 is R$ 47,545 (R$ 45,085 at December 31, 2010). The total amount
background image
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
46
involved in tax proceedings classified as possible is R$ 75,203 in the parent company and on
a consolidated basis (R$70,141 at December 31).
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. During October 2011, the RFB in São Paulo
issued a decision on the refutation presented by BM&FBOVESPA, maintaining, in its substance,
the assessment notice. BM&FBOVESPA appealed to the Board of Tax Appeals, which shall
render a final decision in the administrative proceedings on the legality of amortization of
goodwill for tax purposes. Based on the opinion of its lawyers, BM&FBOVESPA considers that
the risk of loss associated with this tax procedure is remote and will continue to amortize this
goodwill for tax purposes, , as provided by law.
g.
Judicial deposits
BM&FBOVESPA
Consolidated
Details
9/30/2011
12/31/2010
9/30/2011
12/31/2010
Legal obligations
37,893
33,023
38,253 33,370
Tax
57,729
54,103
57,729 54,103
Civil
4,366
2,096
4,366 2,095
Labor
1,937
2,667
2,439 2,810
Total
101,925
91,889
102,787
92,378
background image
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
47

Of the total judicial deposits, (i) R$40,637 (R$ 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$ 9,853 (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$ 36,476 (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.

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 1,928,526,967 outstanding ordinary shares at
September 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.




background image
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
48
b.
Treasury Shares
Share buyback program

In a meeting held on August 12, 2010, the Board of Directors approved a Share Buyback
Program. On December 16, 2010, the Board approved the extension of the Repurchase Program,
which now has the final date of September 30, 2011.

BM&FBOVESPA repurchased the expected amount of 60,000,000 common shares during the
period from August 18, 2010 to September 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.

Through September 30, 2011, BM&FBOVESPA repurchased 27,271,900 shares, which
represented 1.41% 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..
We present below the activity of treasury shares during the period:
Quantity
Amount
At December 31, 2010
64,093,102
613,903
Acquisition of Shares - Share Buyback Program
55,321,900
584,962
Sold shares - stock option (Note 18)
(3,927,674)
(39,780)
At September 30, 2011
115,487,328
1,159,085
Average cost of treasury shares (R$)
10,036
Market value of treasury shares
1,015,134


background image
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
49
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 September 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).

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, as a supplement to dividends for the year
ended December 31, 2010.






background image
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
50
Interest on own capital and dividends distributed are detailed below:
Details
Deliberation
Payment
Per share
(gross) (R$)
Total amount
(gross)
Interest on own capital
RCA BVMF - 02/17/2011
03/10/2011
0.025461
50,000
Interest on own capital
RCA BVMF - 05/12/2011
07/05/2011
0.051128
100,000
Dividends
RCA BVMF - 05/12/2011
07/05/2011
0.034054
66,605
Dividends
RCA BVMF - 08/09/2011
03/10/2011
0.121740
235,336
Total deliberated on period
451,941
The management of BM&FBOVESPA chose not to create a revenue reserve for the difference
between the amount recognized in equity and the amount received as dividends resulting from
participation in the affiliate CME Group.
g.
Earnings per share
Consolidated
Basic
2011
2010
3
rd
Quarter 2011
Accumulated
3
rd
Quarter 2010
Accumulated
Numerator
Net income available to shareholders of
BM&FBOVESPA
292,006
856,993
292,981
883,094
Denominator
Weighted average of shares in circulation
1,944,885,163
1,948,895,031
2,004,305,572
2,003,688,557
Basic weighted earnings per share (in R$)
0.150140
0.439702
0.146176
0.440734
Consolidated
Diluted
2011
2010
3
rd
Quarter 2011
Accumulated
3
rd
Quarter 2010
Accumulated
Numerator
Net income available to shareholders of
BM&FBOVESPA
292,006
856,933
292,981
883,094
Denominator
background image
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
51
Weighted average of shares in circulation
adjusted for the effects of stock option plans
1,945,693,091
1,955,498,119
2,017,687,533
2,017,264,875
Diluted weighted earnings per share (in
R$)
0.150078
0.438217
0.145206
0.437768

16
Related Party Transactions

a.
Transactions and balances with related parties
Assets/ (Liabilities)
Revenue/ (Expenses)
2011
2010
Details
09/30/2011
12/31/2010
3
rd
Quarter Accumulated
3
rd
Quarter
Accumulated
Bolsa de Valores do Rio de Janeiro - BVRJ
Accounts receivable
327
-
Accounts payable
(2,314)
(2,315)
Contribution on membership certificates
-
-
(119)
(356)
Banco BM&F de Serviços de Liquidação e
Custódia S.A.
Cash and cash equivalents
Accounts receivable
-
17
Foreign exchange operations
565
527
Recovery of expenses
61
153
1,831
4,917
1,303
3,981
Bolsa Brasileira de Mercadorias
Accounts receivable
7
5
Accounts payable
(104)
(337)
Minimum contribution on membership certificates
(308)
(962)
(352)
(983)
Recovery of expenses
16
45
14
101
BM&FBOVESPA Supervisão de Mercados
Accounts receivable
681
452
Recovery of expenses
603
1830
659
1943
Mechanism of reimbursment of losses
Accounts receivable
22
24
Associação BM&F
background image
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
52
Accounts receivable
6,459
6,947
CME Group
Accounts payable
Costs of Operations
-
-
65
65
Associação Profissionaliz BM&FBOVESPA
Accounts payable
2,561
-
Other companies
Accounts receivable
20
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 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
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.




background image
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
53


2011
2010
Management benefits
3
rd
Quarter
Accumulated
3
rd
Quarter
Accumulated
Short-term benefits (salaries, participation in results,
etc.)
6,775
19,023
6,387
18,308
Post-employment benefits
-
-
-
12
Employment contract rescission benefits
-
11
120
613
Share based remuneration (1)
(355)
9,871
745
4,910
(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.
background image
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
54
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
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$ 1,159,927 (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 September 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;
background image
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
55
Special Clearing Member Fund, in the amount of R$40,000 at September 30, 2011 and
December 31, 2010, formed by a capital transfer from BM&FBOVESPA., intended to hold
BM&FBOVESPA resources allocated to guarantee the proper settlement of transactions,
regardless of the type of contract;
Clearing Fund, in the amount of R$ 398,989 (R$408,509 at December 31, 2010), formed by
collateral transferred by clearing members, intended to guarantee the proper settlement of
transactions after the resources of the two previous funds have been used;
Special equity, in the amount of R$ 37,874 (R$34,807 at December 31, 2010), in compliance
with the provisions of Article 5 of Law 10,214, of March 27, 2001 and of Article 19 of
Circular 3,057 of the Brazilian Central Bank, of August 31, 2001.
The main components of the safeguard structure of the Foreign Exchange Clearinghouse are
described below:
Collateral pledged by foreign exchange market participants;
Participation fund, in the amount of R$ 181,729 (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$50,000 at
September 30, 2011 and December 31, 2010, with the purpose of maintaining funds of
BM&FBOVESPA to cover losses resulting from operating or administrative failures;
Special equity, in the amount of R$ 37,903 (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 September
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;
background image
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
56
Special equity, in the amount of R$26,669 (R$24,536 at December 31, 2010), in compliance
with the provisions of Article 5 of Law 10,214, of March 27, 2001 and of Article 19 of
Circular 3,057 of the Brazilian Central Bank, of August 31, 2001.
The main components of the safeguard structure of the Equity and Corporate Debt Clearinghouse
(CBLC) are described below:
Collateral deposited by CBLC's market participants;
Joint responsibility for trade settlement by the brokerage house and clearing member that
acted as intermediaries, as well as the collateral deposited by these participants;
Settlement Fund, in the amount of R$ 379,000 (R$485,409 at December 31, 2010), formed
by collateral transferred by clearing members, intended to guarantee the proper settlement of
transactions;
Special equity, in the amount of R$ 40,488 (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.
background image
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
57
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.
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
September 30, 2011, the pledged collateral totaled R$ 173,507,246 (R$143,087,657 at December
31, 2010), as follows:





background image
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
58


Derivatives Clearinghouse
09/30/2011
12/31/2010
Federal government bonds
93,089,162
76,979,261
Letters of credit
3,185,660
3,538,492
Equities
3,277,126
4,934,328
Bank certificates of deposit (CDBs)
1,565,127
1,150,998
Gold
69,487
105,958
Cash (1)
678,817
652,290
Other
154,030
173,340
Subtotal
102,019,409
87,534,667
Foreign Exchange Clearinghouse
Federal government bonds
3,295,093
3,855,147
Cash (1)
101,690
66,520
Subtotal
3,396,783
3,921,667
Securities Clearinghouse
Federal government bonds
825,833
928,786
Equity and Corporate Debt
Clearinghouse - CBLC
Federal government bonds
35,741,144
22,749,941
Equities
27,920,751
25,809,847
International bonds (2)
2,237,940
736,905
Bank certificates of deposit (CDBs)
559,762
580,066
Letters of credit
267,139
448,054
Cash (1)
441,782
235,720
Other
96,703
142,004
Subtotal
67,265,221
50,702,537
Total
173,507,246
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.
background image
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
59

(2)
US and German federal government bonds, as well as ADRs (American Depositary Receipt).
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
09/30/2011
12/31/2010
Federal government bonds
352,731
354,256
Letters of credit
43,262
35,012
Bank certificates of deposit (CDBs)
-
14,700
Equities
2,996
4,541
Amounts deposited
398,989
408,509
Amounts that ensure clearing
member/trader participation
(301,000)
(313,000)
Excess collateral
97,989
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$398,989 (R$408,509 at December 31, 2010), while the remainder refers
to the surplus of non-enforceable deposited collateral.








background image
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
60

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:
Composition
09/30/2011
12/31/2010
Federal government bonds
931,374
921,678
Letters of credit
207,752
172,210
Bank certificates of deposit (CDBs)
8,320
52,801
Equities
12,481
15,358
Cash (1)
-
75
Amounts deposited
1,159,927
1,162,122
Amounts that ensure clearing member/trader
participation
(969,400)
(989,200)
Excess collateral
190,527
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.
background image
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
61
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:
Composition
09/30/2011
12/31/2010
Federal Government Bonds
181,729
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
09/30/2011
12/31/2010
Federal government bonds
379,000
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.
background image
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
62
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:
09/30/2011
12/31/2010
Equity of Mechanism of reimbursment of losses
314,890
372,789
Mechanism of reimbursment of losses
222,548
280,447
Guarantee Fund - BM&FBOVESPA
92,342
92,342
Guarantee Fund - Bolsa Brasileira de Mercadorias
849
792
Guarantee Fund - Bolsa de Valores do Rio de Janeiro
(5,012)
(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 September 30, 2011 totaled 3,100,546 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
background image
(A free translation of the original in Portuguese)
BM&FBOVESPA S.A. ­ Bolsa de Valores, Mercadorias e Futuros
Notes to the Financial Statements
at September 30, 2011
(All amounts in thousands of reais)
63
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)