BM&F: Volumes Increase In 2008

The Brazilian Mercantile & Futures Exchange-BM&F SA announced an average daily trading volume (ADTV) growth during the first months of 2008, especially in March and particularly in the interest rate (ID) futures market. This announcement was made by the BM&F Investor Relations officer, Mr. João Lauro do Amaral, during the first market analysts meeting (APIMEC) held by BM&F, The event took place this morning at BM&F’s headquarters.

By March 17, the ID futures ADTV had reached 1.36 million contracts, a 138.9% increase over the 571,600 December 2007 average. The total daily average—without taking into account the mini contract segment—reached 2.52 million, a 90% rise in relation to the average volume of 1.32 million registered during the same period last year.

The trading volume increase is also reflected in the average rate per contract (RPC). “This is an important element for the sustainability of BM&F’s business. A mix of products, such as interest rates, FX rates, indices, commodities, over-the-counter transactions, and WebTrading, demonstrate a higher theoretical RPC,” explained Mr. Amaral, demonstrating that, from January to March 17, 2008, the RPC rose to BRL1.45 against the average of BRL1.41 registered last semester. For the interest rate contracts, for example, the increase was even higher: Revenues shot from BRL1.088 to BRL1.097 per contract over the last quarter 2007. FX rates, indices and WebTrading contracts also heightened their RPC.

BM&F’s chief financial officer, Mr. Marco Aurélio Teixeira, highlighted the fact that the trading volume reduction that occurred during the fourth quarter of 2007 did not affect the Exchange revenue levels in the same proportion. “Revenues are related to the maturity of some contracts, such as ID futures and IDxUS Dollar FRA. For these products, shorter expiration dates generate less revenue for the Exchange. This is due to the exchange fee calculation for the ID futures, which establishes that the longer the maturity the greater the exchange fee will be,” Mr. Teixeira explained. APIMEC seal During the meeting with analysts, BM&F received the


APIMEC seal

According to São Paulo’s APIMEC chairperson, Ms Lucy Aparecida de Souza, “this seal represents an everlasting partnership.” BM&F’s CEO, Mr. Edemir Pinto, received the award, and also thanked the presence of the attending financial analysts. “This is a big honor for us. The fact that our first APIMEC meeting was held here at the Exchange makes us very proud.”

Approximately 70 participants, including analysts, investors and journalists, were present at today’s event. The event discussed BM&F’s 4Q 2007 earnings release and highlighted the company’s growth strategy for 2008.