Market Development Initiatives

Client and Business Development

August 2016

1
Public

Securities Lending
Business opportunities

Operational

Open Interest BRL Billions

Improvements - IPN v.2

Uncertified offers

Give up (borrowers)

* Until Jul/16

35.9

Intraday average rates

15.8

Regulatory

6.9

Local clients

2008

Request to SUSEP Insurance Company

Approach to Ministry of Social Secutiry - RPPS

Dissemination

2%

Annual roadshows in US and Europe

Interactions with local clients that still doesnt use the service

Source: BM&FBOVESPA jul/16

34.1

2011

2012

2013

2014

2015

2016*

(%) Borrowers
2%
1%

4%

22%

36%

Events attendance (ex.: ISLA, RMA, PASLA)

2010

1%

Request to ESMA and SEC UCITS and 1940Act Funds

31.4

22.2

(%) Lenders

Non-residents

2009

45.4

41.4 39.2

34%
59%

39%

Market Making Program Equity Options

Options with Market Making Program

Investors breakdown on option with MM (%)

24 single stock options*

1 ETF option (BOVA11)
1 Index Option (Ibovespa)

3%

1%

23%
36%

24 single stock option + ETF option (BOVA11)

45

34

35

43

27

30
25

20

20

27

14

15
10

5
-

15

17

2012

2013

3
4

10

2009

2010

2011

33

21

ADV (# Million)

2014

2015

% MM options in ADTV
60%

61

60

42

48
39

77
38

70

20

10

8
14

11
15

45

42

50

44

40

20

27

10

2010

2011

2012

ADV (# Thousand)

2013

2014

2015

35%

40%
30%

2016

21%

20%

7%

7%

0%

1%

2%

2009

2010

4%

8%

2011

5%

6%

2012

2013

% of ADTV (BRL)

14%

13%

25%

13%

10%

30

2009

45%

50%

60

40

54

53%

90

80

25

Before MM Programs, volumes on options were

highly concentrated on PETR and VALE :

ADTV (BRL Million)

70

30

Deconcentration

2016

Index Option (Ibovespa)

50

37%

50
45
40
35
30
25
20
15
10
5
-

40

40

2014

2015

16%
14%
12%
10%
8%
6%
4%
2%
0%

2016

% of ADV (#)

ADTV (BRL Million)

Source: BM&FBOVESPA jul/16

*ITUB4, USIM5, BVMF3, BBDC4, GGBR4, BBAS3, CSNA3, CYRE3, ABEV3, CIEL3, BRFS3, BBSE3, KROT3, OIBR3, CCRO3, CMIG4, TIMP3, UGPA3, VIVT4,
BRML3, LREN3, JBSS3, CSAN3, QUAL3

Non-Sponsor BDR
Highlights
4 depository institutions: Bradesco, Citibank, Deutsche Bank and Ita Unibanco
122 programs available for trading

121 based on US-companies

1 based on LATAM

Underdevelopmentinitiatives

To accept non-sponsor BDRs as collateral

Non-sponsor BDR lending
Treatment of trading halt in case of corporate actions
New reference price methodology
ADTV BRL Millions

Open Interest (12 months) BRL Billions

* Since 05,oct
** Until jul/16

3.9
0.4

0.1

0.8

2010*

2011

2012

Source: BM&FBOVESPA jul/16

2013

14.7

15.4

2015

2016**

1.58

2.02 2.03 1.91 1.90

1.87 1.99
1.84 1.73 1.78

1.41 1.52

5.8

2014

ETF EXCHANGE TRADED FUND

Highlights
ETF Managers: Banco do Brasil, BlackRock, Caixa and Ita Unibanco
15 ETFs tracking local and foreign equities indices

13 ETFs tracking local equities indices

2 ETFs tracking foreign index (S&P500)

Underdevelopmentinitiatives
To accept International ETFs as collateral
Bring new ETF managers to list other local and foreign ETFs
Courses, workshops and events for the dissemination of the product

ADTV BRL Millions

AuM (12 months) BRL Billions

* Until jul/16

4.2

172
118

15

19

28

2008

2009

2010

141
99

105

2013

2014

3.1

2.9

3.4

3.4

3.6

2.9

3.0

4.6
3.8

3.5

3.8

49

2011

Source: BM&FBOVESPA jul/16

2012

2015

2016*

Client and Business Development

August 2016

6
Public

MARKET MAKERS FOR DERIVATIVES

Market Makers
Achievements

Trading volumes growth

Spreads decrease
Higher open interest
Lengthening of price curves

... in addition to further 50 institutions mapped.

Programs

12

13

17

37

2011

2012

2013

2014

2015

60+
2016

Inflation Spread Futures

FX Futures

Options on U.S. Dollar

Commodities Futures

Options on Commodities

Options on IDI

Options on Stocks and Indices

IBOVESPA Futures

S&P 500 Futures

Ongoing

To be announced

Evaluating

COMMODITIES MARKETS DEVELOPMENT

Key developments
Anonymous
Markets
Market
Maker

Contango
Project

NDFs on
Commodities

Incentive
Programs

Open Position
Limits

Roadshows
USA and Europe

INTEREST RATES AND FX PRODUCTS

Enhancements and Expansion of Products

Inflation Family

ETF IF

Options
on IPCA

Options on
D11/D12/D
13/D14

Option
on IDI

OTC
Derivatives

Spot Dollar

Govt
Bonds
NTN-B
Futures
DI Index
Futures

FX
Futures

FRA
DAP

DI1

DOL

Currency
Swap
OC1

DI x Pre
Swap
DI x IPCA
Swap

Options
on ITC

Benefits of CORE (Integrated Risk)

Main
contract

Options
on DOL

Adjacent
contract

Contracts to be
assessed

DOL
Rollover

Mini
DOL

Mini Rollover

EUR
Futures

Options
on EUR

JPY
Futures

Options
on JPY

GBP
Futures

Options
on GBP

Markets being
diagnosed

Inflation Spread Future contract. Forward Rate Agreement on coupon. One-day repos (Selic Futures)

INFLATION SPREAD FUTURES (DAP)

Operating figures
100,000 contracts in open interest achieved on Aug 1st
Over 160,000 contracts traded on 11 different maturities
Trades
Contracts (thousands)
Julho
July

43

Junho
June

25

Maio
May

13

11

1- 2

2 2

Q16

K17

Q18

K19

Q20

K21

Q22

K23

Q24
-

10

15

20

25

30

35

40

45

50

55

60

65

Open Interest
Contracts (thousands)
Julho
July

62

13

13

2 3
1

Junho
June

25

Maio
May

22
1

2 2 222

Q16

K17

Q18

K19

Q20

K21

Q22

K23

Q24
-

10

15

20

25

30

35

40

45

50

55

60

65

70

75

80

85

90

95 100
10

INFLATION SPREAD FUTURES (DAP)

Operating figures
100,000 contracts in open interest achieved on Aug 1st
Over 160,000 contracts traded on 11 different maturities

Open Interest equivalent to NTN-B

Quantity (thousands)

BRL (thousands)
800

4.000
Q24

3.500

K23

600

3.000

Q22

2.500

K21
400

2.000

Q20

200

K9

1.500

Q8

1.000

K7

500

Q6

May-16 May-16 May-16 Jun-16 Jun-16 Jun-16 Jul-16

Jul-16

Jul-16

May-16 May-16 May-16 Jun-16 Jun-16 Jun-16 Jul-16

Jul-16

0
Jul-16

11

FIXED INCOME ETF

Products Status
Product Regulation Concluded

Trading and Post-trading systems ready for

listing
National Treasury preparing to select a
fund manager to run the Sponsored FI ETF
Fund managers evaluating the market and
available benchmark indices
12

www.bmfbovespa.com.br
55 11 2565-4729 / 4418 / 4207/4834/7938
ri@bmfbovespa.com.br
13