Documentos de Académico
Documentos de Profesional
Documentos de Cultura
December 2014
1
History of BM&FBOVESPA
Important global exchange
1890:
Foundation of Bolsa
Livre (BOVESPA's
predecessor)
1967:
BOVESPAs
Mutualization
1986:
Start of
BM&F
activities
Aug 2007:
BOVESPA Hld
demutualization
Oct 2007:
BOVESPA Hld
IPO (BOVH3)
Nov 2007:
BM&F IPO
(BMEF3)
May 2008:
integration between BM&F and
BOVESPA Hld and creation of
BM&FBOVESPA (BVMF3)
12M to Jun. 28, 2013; 12M to Mar 31, 2013. Source: Bloomberg (November 28,2014).
TRADING
PRE-TRADING
Risk Analysis
Access
Risk Analysis
(DMA)
POST-TRADE
Trade
Allocation
Transfer
Vertically integrated
Trading Platform: equities, derivatives, government and
corporate bonds, funds, spot FX, among others
Post-Trade Platform:
Central Counterparty (CCP) : An entity that interposes itself
Clearing/risk
analysis
Position/
Auxiliary
Settlement Collateral Depository Services
US
(Internalization of orders is allowed)
Trading Venues
Trading
DTCC
Brokers A and B
Broker
A
Brokers
A and B
Broker
B
Post trade
CCP
SSS
CSD
Investors
Investors
Investors
Investors
Trading
Post-Trade
Corporate Governance
Multidisciplinary knowledge in conducting business
BOARD OF DIRECTORS
EXECUTIVE OFFICERS
Edemir Pinto
CEO
Eduardo Guardia
Chief Product / IRO
Ccero Vieira
COO
Andr Esteves
Non Executive Director, CEO of BTG Pactual
Daniel Sonder
CFO
Luis Furtado
CIO
Charles Carey
Independent Director, Director of CME Group
Claudio Haddad
Independent Director, engineer and professor
Jos Berenguer Neto
Non Executive Director, CEO of JP Morgan Brazil
COMMITTEES
Audit Committee
Nominations and Corporate Governance Committee
Compensation Committee
Risk Committee
Ownership structure
Widely-held shareholder base
10.44%
6.84%
5.32%
CMEG Brasil I Participaes Ltda.
5.02%
3.15%
Treasury stock
69.23%
Other
51,924
3,245
55,169
1,852,153,920 (97.5%)
10
11
12
DERIVATIVES MARKET
Growth of credit and fixed-rate government debt: higher demand for
hedging from financial institutions and institutional investors
Growth of foreign trade: higher demand for hedging through FX
contracts
Equities market development: growth in demand for index-based
contracts
OTC derivatives: capital requirements (Basel) should benefit OTC
transactions through a CCP
13
Capital Market
Great opportunities in the equities and derivatives segments
NUMBER OF CUSTODY ACCOUNTS (thousand)
INVESTMENT FUNDS
Funds AUM evolution (in BRL billion). Global average of 40% for
equities
PENSION FUNDS
LISTED COMPANIES
Lower number of listed companies in comparison with
other countries
6,973
5,008
4,132
3,886
3,245
2,055
1,813
363
India
USA
China/HK
Canada
Spain
Australia
Korea
Brazil
May have a partial overlap between investment funds and pension funds portfolios.
14
15
BM&FBOVESPA is investing
more than USD650 million
(2010 - 2015) to build worldclass and cutting-edge IT, Risk
and Operating infrastructure
NEW
DATA CENTER
16
PUMA Platform
High availability and performance
RESILIENCE AND AVAILABILITY
438 uninterrupted trading days*
BOVESPA segment
BM&F segment
Clearinghouses Integration
Further differentiation in BM&FBOVESPA post-trade
Derivatives
(BRL 132.6 bn*)
Financial and
commodities derivatives
(futures, options and
forwards)
OTC derivatives
Implemented on
Aug 18th, 2014
FX
(BRL 3.7 bn*)
FX spot market
(US$ vs. BRL )
Securities
(BRL 0.7 bn*)
Cash market and
forward market for
government bonds
Securities lending
INTEGRATED CLEARINGHOUSE**
=
Capital efficiency
Aggregate of pledged collateral at our clearinghouses totaled BRL 211.4 billion in Jun 30, 2014. ** Implementation of BM&FBOVESPA Clearinghouse subject to the results of the tests with
the market and the authorization from regulators..
18
4 rulebooks and
4 manuals.
Other products
and assets
4 participant
structures
4 distinct
environments /
IT architectures
4 settlement
windows and 4
multilateral
balances
4 systems /
back-office
processes
Government
Bonds
Corporate
fixed income
Position control
4 registration
systems for
participants and
clients.
4 pools of
collateral
Risk management
Pool of collateral
Securities
lending
Interbank spot
foreign
exchange
Futures, options,
forwards
Liquidity management
improvement
More efficient
allocation of capital by
investors
Operational and
technological risk
reduction
19
20
21
Law 13.043 grants exemption on capital gains for elegible SMEs investors until 2023
Creation of investiment fund with proper structure to invest in SMEs
Reduction of maintenance and public offer cost for listed companies
Include stocks in the roll of restricted public distribution efforts
BNDES suppor to foster IPOs on BOVESPA MAIS
Fixed Income and OTC markets (product, market and revenue diversification)
Securities registration: (i) marketing of already-available products (CDB, LCA, LCI and COE); ii)
new products (CDB - new types, Financial Bills, COE - physical delivery and repos)
OTC Derivatives: (i) benefits of CORE; (ii) SWAPs and Flexible Options migration to the new
platform (flexibility and operational efficiency); and (iii) development of SWAPs with cash flow
Corporate bonds: (i) acceptance of securities with restricted distribution efforts (ICVM 476);
and (ii) migration of trading to PUMA
OPERATIONAL PERFORMANCE
24
BOVESPA Segment
Operational highlights
AVERAGE DAILY TRADING VALUE ADTV (BRL billion)*
*
*Updated to November 28, 2014. **Ratio of cash market trading volume to the market cap of the exchange.
25
BM&F Segment
Operational highlights
AVERAGE DAILY TRADED VOLUME ADV (thousands of contracts)
2007
2013
2014*
N-13
D-13
J-14
F-14
M-14
A-14
M-14
J-14
J-14
A-14
S-14
O-14 N-14*
1.115
1.115
1.266
1.049
0.980
1.105
1.185
1.211
1.168
1.152
1.177
1.090
1.076 1.226
FX rates
2.628
2.611
2.832
2.629
2.633
2.616
2.555
2.594
2.659
2.619
2.578
2.464
2.654 2.980
Stock Indices
1.740
1.664
2.122
1.695
1.958
1.597
1.834
1.601
2.095
1.527
1.863
1.477
1.721 1.628
1.278
1.359
1.340
1.325
1.414
1.553
1.275
1.300
1.332
1.156
1.250
1.240
1.264 1.078
Commodities
2.376
2.430
2.760
2.401
2.199
2.683
2.587
2.883
2.223
2.152
2.084
2.315
2.295 2.510
Mini contracts
0.117
0.120
0.128
0.122
0.123
0.119
0.118
0.120
0.123
0.120
0.115
0.107
0.113 0.120
OTC
2.062
1.266
0.978
1.077
1.069
1.155
1.501
2.679
3.027
3.862
3.236
2.069
1.911 1.517
Total RPC
1.339
1.367
1.575
1.294
1.261
1.393
1.411
1.406
1.431
1.335
1.373
1.249
1.284 1.405
2008
2009
2010
2011
2012
26
27
FINANCIAL HIGHLIGHTS
Cost discipline and capital return to shareholders
28
Income Statement
History
SUMMARY OF INCOME STATEMENT (CONSOLIDATED)
(in BRL thousand)
2009
2010
2011
2012
Net revenue
1,510,569
1,898,742
1,904,684
Expenses
(569,832)
(633,504)
(816,664)
(446,677)
(543,881)
(584,521)
940,737
1,265,238
1,088,020
1,301,670 1,334,635
942,147
62.3%
66.6%
57.1%
63.0%
62.6%
62.8%
38,238
219,461
149,270
171,365
144,673
245,837
289,039
280,729
208,851
181,535
154,881
1,186,574
1,592,515
1,588,210
(304,505)
(448,029)
(539,681)
881,050
1,144,561
1,047,999
1,074,290 1,081,516
1,223,761
1,586,374
1,545,627
0.6104
0.7929
0.7932
Adjusted expenses
Operating income
Operating margin
Equity method result
Financial result
Net income*
Adjusted net income
Adjusted EPS (BRL )
0.8351
2013
0.8389
9M14
745,131
0.6007
29
Total revenue
R$594.7
million
Expenses
R$193.8
million
30
Expenses adjusted to Companys depreciation, stock granting plan principal and social charges -, stock options plan, tax on dividends from the CME
Group, transfer of fines and provisions.
Considers the high point 2014 budget;
IPCA for 2014 and 2015 based on market expectations released by the Central Bank in Dec. 05, 2014;
4 Considers the mid-point of 2015 budget and high point 2014 budget
31
Capex Budget
Investments phase
NEW
DATA CENTER
BTC
Market
Maker
SINACOR
...
32
1H11
1H14
55.4
1H11
21.1
Marketing
1H11
Communicat.
Data
processing
1H11
46.7
1H11
1H14
Real Var.
19.0%
-3.3%
18.8%
-12.0%
-15.9%
-37.7%
-78.4%
-84.0%
-41.9%
-57.0%
17.7
1H14
1H14
Nominal Var.
154.4
1H14
Third party
services
Personnel
expenditure
R$ MM
24.1
5.2
12.3
7.1
Includes personnel capitalization and excludes stock option and bonus expenses, Calculated based on the annual wage increase between 2011 and 2013 for
personnel expenditure and the IPCA of services accumulated from July, 2011 to June, 2014 for the other lines of expenses
33
Financial Highlights
Financial solidity combined with return of excess capital to shareholders
+
Buyback
Almost 13% of free
float repurchased in
almost 6 years (2H089M14)
Cash Position
R$2,091 MM
Indebtedness
R$1,513 MM
Rating
Moodys
Baa1 (issuer global scale)
Baa2 (issuer BR scale)
Baa1 (global notes)
S&P
BBB+ (counterparty cred.)
A-2 (issuer)
Data of BM&FBOVESPA (not consolidated): excludes variation in financial transactions and collateral pledged by participants, proceeds raised in connection with the
acquisition of CME Group shares in 2010. Data from September, 2014 and excludes third party resources (investors collateral, resources deposited in the
BM&FBOVESPA Bank and others).
34
3Q14 RESULTS
35
3Q14 Highlights
Solid results in a challenging environment; one-off charge
FINANCIAL HIGHLIGHTS (3Q14 vs. 3Q13)
Excludes stock options plan cost, depreciation, tax on dividends from CME Group and provisions. 2 According to CVM Rule 527/12 that does not exclude equity method accounting.
Excludes deferred liability recognized in correlation with temporary differences from amortization of goodwill for tax purposes, stock options plan cost, investment in associate (CME
36
Group) accounted under the equity method of accounting, net of taxes related to dividends and taxes paid overseas to be compensated.
3Q14
5.061
13.115
13.145
12.999
5.502
MINI CONTRACTS
(in R$)
11.3%
9.1%
215.1
202.8
3Q13
4Q13
8.8%
249.4
255.1
1Q14
2Q14
FX rate (R$/US$) in the quarter, considering the closing price for previous month.
11.9%
316.8
3Q14
% Total
38
DERIVATIVES REVENUE
(BM&F + BOVESPA) ACCOUNTED FOR
43.5% OF THE TOTAL
38.1%: Cash Market
5.9%: Trading
32.2%: Post-Trade
5.7%: Stock and Indices Derivatives
37.8%: Financial/Commodity Derivatives
Total Revenue
R$594.7 million
1Trading
and Post-trade
39
*Include expenses with maintenance in general, taxes adjusted by the dividends from CME Group, board and committee members compensation and others.
40
-2.2%
Diligent management of
assets and headcount
dimensioning; lower profit
sharing
3.5%
-3.0%
Review of contracts,
legacy system deprecated
2.9%
-3.6%
Inflationary contract
adjustments
Contracts review
260.6
264.2
Data
processing
Personnel
expenditure
(in R$ millions)
Third party
Marketing Communicat.
services
Real Var.
Nominal Var.
4.9%
81.3
84.2
25.7
26.5
-22.8%
-27.6%
Inflationary contract
adjustments
Improvements and
eletctronification of the
mailing process for
statements successfully
implemented
-18.0%
-23.2%
Inflationary contract
adjustments
Strategic review of
marketing activities;
ongoing process of
expenses review
13.2
10.2
9.9
8.1
Includes personnel capitalization and excludes stock option and bonus expenses, Calculated based on the annual wage increase between 2013 and 2014 for personnel expenditure and
the IPCA of services accumulated from September, 2013 to September, 2014 for the other expenses lines.
41
Financial Highlights
Consistently returning capital to shareholders
CASH AND FINANCIAL INVESTMENTS
(In R$ millions)
Payout
3Q14
2Q14
1,390
360
1,131
404
1,037
909
3,842
1,055
3,497
1,053
Share Buyback
1Q14
4Q13
3Q13
2,441
2,134
1,686
432
457 359
497 355
897
1,307
1,921
1,960
5,077
4,871
4,498
FINANCIAL RESULT
Financial result of R$47.3 MM, down 4.6% from 3Q13,
explained mainly by R$18.1 MM interest payment in
connection with the settlement of a tax dispute under the
REFIS
CAPEX
Clearinghouses required safeguards: growth in line
with additional collateral pledged by market
participants
42
Resilient IT Infrastructure
Capacity and resilience of the system tested in times of high volatility
Oct-27-14
Record # of Trades
2,582,718
Oct-16-14
Record # of Trades
376,741
200
1
0
Jan-14 Feb-14Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14
100
0
Jan-14 Feb-14Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14
43
Growth Products
Increasing revenue diversification
REVENUE GROWTH OF SELECTED PRODUCTS
Securities Lending
Tesouro Direto
Market maker for options on single stocks
Exchange traded funds (ETF)
Agribusiness credit bills (LCA)
Real estate investment funds (FII)
Non sponsored Brazilian Depositary Receipts (BDRs N1 NP)
CAGR
(2010-14):
+22.9%
(In R$ millions)
44
Financial Statements
Summary of Balance Sheet (Consolidated)
ASSETS
9/30/2014
12/31/2013
(in R$ millions)
3,025.6
4,319.5
370.0
1,196.6
2,337.0
2,853.4
Others
318.5
269.5
22,214.7
21,577.2
1,517.3
1,135.4
1,134.2
820.8
383.1
314.6
3,544.6
3,346.3
421.0
423.2
16,731.7
16,672.3
Others
Goodwill
16,064.3
16,064.3
Minority shareholdings
Total Assets
25,240.3
Current assets
Cash and cash equivalents
Financial investments
Others
Non-current assets
Long-term receivables
Financial investments
Others
Investments
Property and equipment
Intangible assets
9/30/2014
12/31/2013
1,888.7
2,710.8
1,333.4
2,073.0
555.3
637.9
Non-current liabilities
4,386.1
3,886.9
1,493.2
1,426.2
2,718.7
2,295.8
174.2
165.0
18,965.4
19,298.9
2,540.2
2,540.2
15,213.7
16,056.7
1,196.4
687.3
15.1
14.7
25,240.3
25,896.7
Current liabilities
Others
Shareholders equity
Capital stock
Capital reserve
45
Financial Statements
Net income and adjusted expenses reconciliations
ADJUSTED NET INCOME RECONCILIATION
3Q14
3Q13
238.4 281.6
7.3
5.6
138.6 138.9
(43.7) (38.2)
16.7
15.8
357.4 403.7
Net Income*
Stock options plan
Deferred tax liabilities
Equity in income of investees (net of taxes)
Recoverable taxes paid overseas
Adjusted Net Income
Change
3Q14/3Q13
-15.3%
30.2%
-0.2%
14.3%
5.6%
-11.5%
2Q14
250.1
7.6
138.6
(39.8)
16.3
372.8
Change
3Q14/2Q14
-4.7%
-3.2%
0.0%
9.9%
2.5%
-4.1%
9M14
9M13
744.6
21.8
415.9
(128.1)
51.2
1,105.4
899.4
21.4
416.7
(117.0)
47.4
1,267.9
Change
9M14/9M13
-17.2%
2.0%
-0.2%
9.4%
7.9%
-12.8%
193.8
(29.5)
(7.3)
(5.8)
(4.3)
146.8
3Q13
194.1
(32.5)
(5.6)
(5.1)
(0.6)
150.2
Change
3Q14/3Q13
-0.2%
-9.2%
30.2%
13.2%
-2.3%
2Q14
178.2
(28.0)
(7.6)
(5.3)
(3.2)
134.1
Change
3Q14/2Q14
8.7%
5.2%
-3.2%
9.2%
36.7%
9.5%
9M14
558.3
(87.1)
(21.8)
(16.6)
(15.4)
417.4
9M13
543.7
(88.4)
(21.4)
(14.8)
(11.8)
407.3
Change
9M14/9M13
2.7%
-1.5%
2.0%
12.1%
30.4%
2.5%
46
(in R$ millions)
Net revenues
3Q14
3Q13
Change
Change
2Q14
9M14
3Q14/3Q13
3Q14/2Q14
546.0
535.4
(193.8)
(194.1)
352.2
341.3
64.5%
63.7%
47.3
49.6
-4.6%
59.5
Financial result
449.0
434.2
3.4%
Net income*
238.4
281.6
357.4
Expenses
Operating income
Operating margin
Equity in income of investees
2.0%
464.8
-0.2% (178.2)
3.2%
9M13
(558.3)
Change
9M14/9M13
-9.4%
(543.7)
2.7%
942.1 1,112.5
-15.3%
286.6
22.9%
76 bps 61.7%
286 bps
62.8%
67.2%
-438 bps
-20.5%
154.9
129.8
19.3%
391.1
-9.6%
-15.3%
250.1
-4.7%
899.4
-17.2%
403.7
-11.5%
372.8
-12.8%
0.195
0.211
-7.5%
0.203
-3.8%
0.601
0.660
-9.0%
(146.8)
(150.2)
-2.3% (134.1)
9.5%
(417.4)
(407.3)
2.5%
744.6
47
APPENDIX
48
Securities Lending
(Open Interest - average for the period - in BRL billion)
+50.3%
CAGR(09-14): + 85.7%
ETFs
49
BOVESPA Segment
Raising Capital
PUBLIC OFFERINGS (BRL billion)
Updated to November 28, 2014
Additionally, there are 5 Real Estate Funds filed with CVM: estimated value of R$ 1.1 billion
* Excludes the portion acquired by the Brazilian government in the Petrobras offering, via the transfer of rights in barrels (BRL 74.8 billion).
50
BOVESPA Segment
Foreign investment flow
MONTHLY NET FLOW OF FOREGIN INVESTMENTS (in BRL billons)
Includes public offering (primary market) and regular trades (secondary market).
51
End of CPMF
(Financial
Transaction Tax)
Sarbanes-Oxley Act
(Jul. 2002)
September14
30.1%
40.5%
10.3%
28.1%
31.5%
59.5%
2001
14
14
2002
1
5
6
2003
8
8
2004
7
8
15
2005
9
10
19
2006
26
16
42
2007
64
12
76
2008
4
8
12
2009
6
18
24
2010
11
11
22
2011
11
11
22
-
2012
3
9
12
2013
10
7
17
2014
1
1
2
-
Total
153
138
291
5
52
Honing of
BM&FBOVESPAs
pricing policy and
incentives
Main drivers
Price recomposition
Pricing new products
2008
2009
Charges on
Depository amount in
balance
Market Data Pricing
Policy
Discounts review
OTC Products
BOVESPA seg. (disc.
per volume day-trade
and rebalancing)
Rebalancing
trading/pos- trade
2010
2011
Incentive program
for Tesouro Direto
2012
Creation of an
organizational
structure for fees
2013
2014
2015...
Announc. pricing
revision for
Market Data,
Issuers, DMA
(BM&F seg.) and
Sec. Lending
53
Products / Market
Main changes
SECURITIES LENDING
DMA
MARKET DATA
Depository
54
1. DETERMINING
THE CLOSEOUT
STRATEGY
T+0
T+1
T+2
T+3
T+4
...
T+N
2. RISK EVALUATION
T+0
T+1
T+2
T+3
T+4
...
T+N
T+1
T+2
T+3
T+4
CLOSEOUT RISK
PERMANENT LOSS
TRANSIENT LOSS
...
3. POTENTIAL P&L
CALCULATION
T+0
T+N
55
ir.bmfbovespa.com.br
56