BM&FBOVESPA announces results for the Third Quarter 2013

Continued revenue diversification across market segments and products, with improved perfomance in securities lending, HFT and depository services;

Both adjusted expenses[1] and capital expenditures are in line with budget range for 2013; Share buyback of R$158.9 million from July to October 2013 (13.1 million shares).


São Paulo, Brazil, November 7, 2013 – BM&FBOVESPA S.A. (ticker: BVMF3) today reported third quarter earnings ending September 30, 2013. Top line and bottom line results were relatively stable when compared with 3Q12, despite the challenging market environment. Products and market segments such as Securities Lending, High Frequency Trading (HFT) and LCA (Letras de Crédito do Agronegócio), which have been showing consistent high growth rates, continued to perform well in the quarter.

BM&FBOVESPA is reaffirming its previously announced adjusted expenses budget range of R$560 million to R$580 million for 2013, and capital expenditure budget range of R$260 million to R$290 million for 2013. The previously announced capital expenditure budget for 2014 of R$170 million to R$200 million is under review.

Main highlights for 3Q13 results

     Total revenue increased 2.7% over the previous year third quarter, reflecting growth in revenue from the derivatives market and from other revenues not related to volumes traded.

     In the BM&F segment, the average rate per contract (RPC) grew 10.6% year-over-year, reflecting changes in the mix of contracts traded and higher prices of contracts connected to the FX rate.

     In the Bovespa segment, the average value traded (ADTV) was roughly flat, despite the challenging environment. The decrease of 2.2% in the average market capitalization was offset by an increase of the turnover velocity, which reached 73.7%.

     HFT volumes increased 32.8% in the Bovespa Segment and 19.6% in the BM&F segment compared to 3Q12.

     Real Estate Investment Funds (FIIs or Fundos de Investimento Imobiliários) ADTV reached R$23.1 million, up 85.1% year-over-year.

     The average financial value of open interest positions in Securities Lending posted an increase of 26.0% year-over-year.

     The financial value of LCAs registered reached R$73.8 billion in Sep/13, 190.6% growth compared to Sep/12.

     R$225.3 million in dividends in 3Q13, totaling 80% of 3Q13 GAAP net income.

“We delivered another solid quarter, resulting in improved revenue amid challenging market conditions,” said Edemir Pinto, Chief Executive Officer of BM&FBOVESPA. “We also made good progress against two strategic initiatives in the third quarter. We announced an improved methodology for the calculation of the Ibovespa index, which will more accurately reflect the performance of the Brazilian equity capital market over time. Secondly, we proposed changes to our listing segments’ rules as part of a broader discussion we are engaged in with the government and private entities aimed towards facilitating capital raising for small and medium-sized companies.”

Eduardo Refinetti Guardia, Chief Product and Investor Relations Officer, commented, “We remained focused on expense control in the third quarter, delivering expenses in line with our budget for the year. In addition, we repurchased more than 0.5% of the free-float, reinforcing our commitment to retuning capital to our shareholders.”

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