Brazil BM&FBOVESPA S.A.

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1 Brazil BM&FBOVESPA S.A. Market Infrastructures in the Country BM&FBOVESPA - BM&FBOVESPA owns the systems and platforms to offer it s trading (Exchange) and post- trading facilities (CCP, CSD and SSS). Besides the trading activities performed by BM&FBOVESPA's matching engines, its clearing houses are responsible for the registration, clearing and settlement of the transactions carried out on its trading platforms. BM&FBOVESPA also provides risk management and additional systems to the market, such as market data, middle and back- office solutions for market participants, among others. In addition, BM&FBOVESPA performs important self- regulatory activities, especially those that ensure rules and regulations stated by the authorities are carried out, including surveillance of listed companies. BM&FBOVESPA also relies on the self- regulatory role of BSM, which independently conducts activities related to the monitoring and supervision of the Participants of BM&FBOVESPA and of BM&FBOVESPA as a listed company. BM&FBOVESPA runs four clearing houses considered systemically important by the Central Bank: the Equities Clearing House, Derivatives Clearing House, Spot F Clearing House and Securities Clearing House, all of which act as CCPs and guarantee the settlement of their Participants' transactions. BM&FBOVESPA also runs a platform for registration and treatment of transactions in OTC derivatives called ibalcão (or e- OTC platform) for non- deliverable forward currency contracts (for financial settlement, no central counterparty available). Reserves Transfer System (STR) system operated by the Brazilian Central Bank in order to perform funds transfers. Special System for Settlement and Custody (SELIC) the Central Bank depository and settlement system for federal government bonds. Organized Over- the- Count Market for Securities and Derivatives (CETIP) - the depository of corporate bonds, state and municipal government securities and securities that represent National Treasury's special debt. Interbank Payments Clearinghouse (CIP) operates the Funds Transfer System (SITRAF), the Deferred Settlement System for Interbank Credit Orders (SILOC), and the Central Credit Assignments (C3). CSD Date of Incorporation BM&FBOVESPA (former CBLC) Established in December 1997 Incorporated into BM&FBOVESPA in May 2008

2 Shareholders BM&FBOVESPA does not have a direct and/or indirect controlling shareholder or group of controlling shareholders. More information on the number of common shares held by BM&FBOVESPA s major shareholders is available on the BM&FBOVESPA s Investor Relations website ( acionaria.asp?idioma=enu). Publicly Traded Supervisory Entities Markets served Types of Securities Number of employees Self- regulatory, and supervised by the Brazilian Securities and Exchange Commission (CVM) and Brazilian Central Bank. BM&FBOVESPA is a vertical integrated company (comprising CCP, CSD and SSS activities) and provides services for the trading of equities and equity derivatives, financial derivatives, corporate and government bonds, agricultural commodities and spot foreign exchange. Regarding the CSD activities BM&FBOVESPA provides a centralized multi assets safekeeping service for equities, corporate debt, gold, agribusiness bonds, and mortgage- backed securities. Additionally, BM&FBOVESPA runs a platform for registration and treatment of transactions in OTC derivatives called ibalcão (or e- OTC platform) for non- deliverable forward currency contracts (for financial settlement, no central counterparty available). Equities Corporate Debt Government Securities Money Market instruments Other No No Asset- backed Securities Agricultural Securities Gold Approximately 40 employees for the CSD activities Income Orientation for Profit Number of Participants Account Structure Banks 80 Brokers 136 Other - 18 Beneficial owner 234 Settlement Cycle Settlement Model T + 3 for equities; T+1 for derivatives on equities; T+0 or T+1 for corporate debt. Equity, equity derivatives and corporate bond trades are received from the trading systems on a real- time, locked- in basis and come to value on T+3, T+1, T+0 or T+1 respectively, in accordance with a DVP BIS Model 2 at the Participant level and BIS Model 3 at the investor account level. Government bond transactions within BM&FBOVESPA settle in accordance with Delivery- Versus- Payment (DVP) BIS Model 2.

3 Fees Published on Website Responded to AGC Questionnaire For special operations such as primary and secondary distributions and privatizations BIS Model 1 is used. Services Type of Service No Comments Depository, Custody 100% Dematerialized Clearing Securities Settlement Cash Settlement Trade Matching Corporate Actions BM&FBOVESPA adopts a multilateral netting procedure to determine the mutual net settlement obligations (in cash or securities payable or deliverable) of Clearing Agents in the equities and equities derivatives markets. The BM&FBOVESPA Securities Clearing House clears the net amount of securities and financial resources of each clearing member by multilateral netting of their rights and obligations. The Spot F Clearing House systems process the settlement of F transactions with its Participants on a bilateral net basis. Multilateral clearing is processed by the Derivatives Clearing House systems overnight, after daily closing of transaction registration systems, that is, after the registration and allocation of the trades executed on the day. The BM&FBOVESPA's Central Securities Depository is involved in the settlement cycle for transactions cleared and settled within the BM&FBOVESPA Equities Clearing House. The CSD is responsible to execute the delivery instructions received from the BN&FBOVESPA clearing and settlement systems. The cash leg of transactions is settled through BM&FBOVESPA s Clearing Houses settlement accounts at the Central Bank (Central Bank Money) Matching is achieved immediately after the trade is struck at the exchange and is binding on both parties involved. When a company approves a corporate action (such as a dividend payment or corporate split) it must inform BM&FBOVESPA, who then announces the corporate action to the market through different channels (website, file, ML files). BM&FBOVESPA is also responsible for calculating corporate actions and for informing all participants and investors. Since BM&FBOVESPA has a fully dematerialized securities structure and once it has segregated accounts for each beneficial owner (final investor) the system automatically processes corporate actions (i.e. payments of dividends and interest, bonuses,

4 Central Counter Party International Links subscription rights, redemptions, for each type of asset). BM&FBOVESPA runs four clearing houses considered systemically important by the Central Bank: the Equities Clearing House, Derivatives Clearing House, Spot F Clearing House and Securities Clearing House, all of which act as CCPs and guarantee the settlement of their Participants' transactions. BM&FBOVESPA has a bilateral agreement with Caja de Valores of Argentina and a unilateral agreement with Iberclear of Spain (Brazilian issuers are listed at the Spanish market). International Securities Collateral Accounts New Issues Processing Tax Withholding Services National Numbering Agency Foreign issuers are listed in the Brazilian Stock Exchange through BDR programs. The BDRs programs (sponsored and non- sponsored) have a specific legal basis Rule CVM 2318 and they do not require an agreement between CSDs except when they play the role of Depositary and Custodian for each other. BM&FBOVESPA provides to the market a secure beneficial owner level account structure. Each account at BM&FBOVESPA has a subaccount structure including a Pledge and Collaterals subaccount. Additionally BM&FBOVESPA accepts securities traded on international markets as collateral deposited in specific- purpose accounts at The Depository Trust & Clearing Corporation (DTCC) and Euroclear. BM&FBOVESPA acts in primary and secondary public offerings of fixed and variable- income securities, offering a series of services for the financial institutions involved. Participants in the Securities Distribution Support Service are financial institutions in general, BM&FBOVESPA's Depository Agents, who act as coordinators or a trade or pool of intermediaries participants. BM&FBOVESPA offers a centralized reserves service of retail investors for all Depository Agents. BM&FBOVESPA also uses its Facilitated Gross Settlement Service for settlement of these operations, thus ensuring smooth functioning and security for coordinators and other participants along the stages of the process (pre- allocation or indication of interest; distribution controls and rules; definitive allocation; firm commitment; settlement; support services for coordinators; supply of information). There is very little demands for a tax reclaim service since Brazilian dividends are withholding tax exempt and other rights payments (e.g. interests) withholding tax falls into the issuers responsibilities. BM&FBOVESPA is the ISIN National Agency and member of ANNA (Association of National Numbering Agencies) for all Brazilian securities, including stocks, fixed- income bonds, and

5 government bonds. Services for Derivatives - Stock lending is permitted within the market and Securities Lending BM&FBOVESPA provides a specialist service, called BTC, where BM&FBOVESPA acts as principal to all loan transactions (e.g. BM&FBOVESPA is the counterparty to all stock lending and acts as intermediary and guarantor of all stock lending transactions) BM&FBOVESPA CSD does not provide proxy voting services, Proxy Voting Service although it does provide proxy statements to its participants upon request. Mutual Funds Services Other Services Centralized Investor s Registration Internet Sales of Treasuries (Tesouro Direto) Emission and cancelation of Exchanged Traded Funds Data and Information services 2013 Main Achievements Changes to fixed income fees: In September 2013, BM&FBOVESPA announced changes in its pricing policies for fixed- income securities, including fee changes on new issuances analysis, custody and account maintenance and trading. These new policies were implemented in October Incentive program for expanding retail investor base: With the aim of expanding the stock market s retail investor base while at the same time forming an investment- minded middle class and encouraging long- term savings so as to broaden capital markets penetration, we have adopted an incentives program whereby brokerage firms will be allocated credits in proportion to the number of retail investors they prospect, the balance of custody accounts they hold for retail customers and the time for which the latter continue to invest. The program rolled out on September 30, 2013, and is set to last through September 30, brokerage firms already joined the program. ibalcão OTC derivatives registration platform: In the third quarter of 2013, we launched our new, streamlined, state- of- art platform for registration and treatment of transactions in OTC derivatives, which we called ibalcão (or e- OTC platform). The first family of contracts listed for trading on this OTC platform comprises non- deliverable forward currency contracts (for financial settlement, no central counterparty available). Pricing policy: We have implemented a number of changes in pricing policies aimed to support the product development and increase liquidity in the markets we operate and create investment drivers. Changes introduced in our Bovespa segment include a reduction in fee rates for trades in cash equities and discounts by volume tier for day traders (which previously were available only to high frequency traders). Moreover, changes to our pricing policies for transactions in corporate debt securities and other fixed- income securities, include changes in fees we charge for analysis and registration of offering documents, as well as changes in maintenance fees, safekeeping fees and account holding fees and transaction fees, all of them introduced to attract new issuers and investors to this market. Selic future contracts: In March 2013, trading commenced for the new financial derivatives

6 contracts referenced to the average rate of one- day repurchase agreements, backed by federal securities (Futures Contract OC1) and options on such contracts, jointly Derivatives OC1 (usually known in the market as "Selic Future") Main Goals and Plans Clearinghouse integration: There have been important developments and milestones achieved within the scope of our Integrated Post- Trading Facility Program (Programa de Integração da Pós- Negociação - IPN), based on which, starting later in 2014, we will combine and consolidate the activities of our four clearing houses into a single, fully- integrated facility which will provide clearing and settlement, central depository and other ancillary services for transactions in equities, equity securities and other equity- based derivatives, corporate debt securities, financial and commodity derivatives, forex and government bonds. Additionally, the new clearing and settlement system will be based on CORE, or Close Out Risk Evaluation, our new central counterparty multi- asset, multi- market risk management framework, and the lynchpin on which our risk management system architecture will be based. This integrated facility is set offer highly efficient clearing and settlement services for multiple assets across markets, which should also greatly enhance our competitive position. The first state of the project covers clearing and settlement of financial and commodity derivatives, has been undergoing tests since July 2013 (including operational readiness tests both of our systems and those of participant brokers), and is set to start operating in the first half of Initiatives for Small and Medium Enterprises (SMEs): Given the importance small and medium sized enterprises (SMEs) have for Brazil s economy and their need for more affordable sources of funding, which is in line with our objective of encouraging SMEs to seek equity financing through IPOs, in July 2013, in a joint initiative of BM&FBOVESPA, the Brazilian Securities Commission (Comissão de Valores Mobiliários), or CVM, and other public and private sectors entities, we submitted to the Ministry of Finance a project proposing capital market alternatives to spur small- business growth. Changes to equity fees: In line with the changes to the pricing policy for the cash equity market announced in March 2013, BM&FBOVESPA has announced further changes to the fees for options on single stocks. The new pricing policy will extend the volume discounts currently applied to HFTs investors to all day trade transactions in cash equities and option on single stocks. This policy is expected to be implemented on December 2, 2013, as previously announced. New Methodology for the Bovespa Index Ibovespa: On September 11, 2013, BM&FBOVESPA announced a new methodology for the calculation of the Ibovespa. The overall goal of the new methodology is to ensure that the index accurately represents the performance of the Brazilian equity capital markets. The Ibovespa valid from January to April 2014 will be weighted 50% with the previous methodology and 50% with the new methodology. From May to August 2014, the new methodology will be fully implemented in the index. ibalcão OTC derivatives registration platform: We are set to list new products and offer new services over the course of the year 2014, including the registration service for time deposits (Certificado de Depósito Bancário CDB ), real estate credit bills (Letra de Crédito Financeiro LCI ) and structured notes (Certificado de Operações Estruturadas COE ).

7 Innovation PUMA Trading System: The implementation of the equities module of our multi- asset trading platform, PUMA Trading System, developed in partnership with the CME Group, was completed on April 8, 2013 and represents an important milestone in the Brazilian stock market. PUMA is a high performance trading platform that delivers higher latency and capacity and new features. New Data Center: The construction of our new primary data center, a specially designed facility, tailor- made to meet our specific needs and demands, is set to complete in the first half of This new data center will include facilities to host the technology infrastructure of market participants and other customers. On completing this project, we will reorganize our data centers for a more efficient, high- capacity, high- security technology infrastructure, which will better prepare us to meet the demands of our future growth. Contacts Position Title Name Telephone CEO Edemir Pinto edemir@bvmf.com.br CFO Daniel Sonder dsonder@bvmf.vom.br Operations VP Cícero Augusto Vieira Neto cvieira@bvmf.com.br IT VP Luis Otavio Saliba Furtado lfurtado@bvmf.com.br Depository and OTC Marcelo Wilk mwilk@bvmf.com.br Registration Officer Legal Officer Roberto Augusto Belchior da Silva rbelchior@bvmf.com.br Human Resources Officer Maria Elsa Alba Bernhoeft mbernhoeft@bvmf.com.br

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