BVMF’s Self-Assessment ACSDA Worskshop on CPSS-IOSCO Principles for FMIs

1. BVMF’sSelf-Assessment ACSDA Worskshopon CPSS-IOSCO Principles for FMIs September, 25th2012

2. AboutBM&FBOVESPA Services for issuers, brokers and commodities trading Trading, Clearing and Depository Activities Other Services BVMF is a vertically integrated multi-asset class and multi-market operator with a broad range of products and services Custody (services provided for funds and other market participants) Listing (stocks, bonds, funds, asset-backed securities, Among others ) Trading (stocks, derivatives, corporate and government Bonds, funds, spot US Dollar, among others) Commodities Certification Central Counterparty (CCP) Clearing and Settlement (for all products) Market Data Indices Licensing Trading Access (Brokers) Central Depository (stocks and corporate bonds) Software Licensing (used by brokerage Houses and other market participants) Securities Lending (stocks and corporate bonds) OTC Derivatives (registration and collateral management)

3. Thecompany’spost-tradeinfrastructuremaybedividedintothree major business units: SSS, CCP and CSD BM&FBOVESPA’s Post-tradeInfrastructure Central Securities Depository (CSD) Central Counterparty (CCP) Securities Settlement System (SSS) • Service provider or institution which holds securities in a centralized form and allows financial transactions to be processed by book entry. • In addition to the traditional securities safekeeping and treatment of corporate actions, a CSD may also incorporate trade comparison, clearing and settlement. • Interposes itself between counterparties in transactions or contracts, becoming the buyer to the seller and the seller to the buyer. • The legal process through which the counterparties are replaced is known as “novation.” • Allows the transfer of securities and assets between investors, either free ofpayment or against payment. • When a securities transaction is settled, a transfer willoccur through the accounts heldat a the CSD and the corresponding financial resources willbesettled, in general, in an interbank funds transfer system, which, in most cases, is managedby the Central Bank.

4. Major issuesidentifiedbeforetheself-assessment Time to Review/Understand CPSS-IOSCO Principles • Directors and managers to review/understand the principles, key considerations and questions Three key issues were identified, highlighting the need for robust planning and tracking of the self-assessment Gather Information/Data • Gather all information/data to answer the Key Explanations demanded time and effort from multiple areas of BVMF Identify Critical Departments • Identify critical departmentsand establish a routine for them to take responsibility for the principles consistency analysis • Robustworkplanandtrackingprocess: • Ensure an approach that allows the completion of the self-assessment in a timely-manner; • Estimate the most effective and efficient workforce approach; • Ensure the plan is aligned to current workforce expectations; • Monitor the plan and ensure it can be adapted to variance in workforce trends and areas availability

5. Theworkplandeveloped for the BVMF self-assessmentwascomprisedof 3 major phases Self-assessmentworkplan Data CollectionandOrganization Data Analysis DevelopmentandValidationofthe Final Document • Collect data • Develop Status Report framework • Compile data in a single document under Assessment Methodology (AM) • Develop Answers Control Doc • Send the document to the responsible areas • Analyze the responses received • Evaluate the information with the responsible areas Develop a draft document of the company’s self-assessment • Validate draft • Develop final version ofBVMF’sselfassessment MAIN ACTIVITIES • Status report • Documentcompiledaccording to AM • AnswersControlDoc • Draft ofthecompany’sself-assessment • Final version of BVMF’s self assessment PRODUCTS Phase 1 Phase 2 Phase 3 Kick-off meeting WorkingCommittee meetings Final presentation

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