BME Financial Results 1H11

The information contained herein does not constitute an offer of securities in the United States.
Offers and sales of securities in The United States may not be made absent made registration
under the U.S. Securities Act of 1933, as amended, or an applicable exemption therefrom.
This document does not solicit money, securities or any other type of consideration, and if
any money, securities or other type of consideration is sent in response hereto, it will not be
accepted.

First Half-Year 2011

■ Net earnings for the first half of 2011 amounted to €77.9 million.

- After excluding extraordinary income and expenses incurred, adjusted profit for 1H11
is 3.8% lower than in the same period in 2010, and a 10.0% improve on 2H10 adjusted
net results. Including the effect of extraordinary items, net earnings in the first half of 2011
were 7.7% less than those obtained in 1H10

- Revenue in 1H11 decreased 6.7% with respect to 2010. After adjustment for extraor-
dinary income obtained, revenue decreased 3.3%

- Operating costs amounted to €49.6 million in 1H11, which represents a yoy decrease
of 7.8%. After adjustment for extraordinary items, operating costs decreases 0.4%

■ The number of trades in Equity increased by 11.5% in 1H11, whereas turnover decreased
by 8.1%. Market capitalisation at the end of the six-month period was 17.5% higher that
that recorded in the previous year.

■ The trend in stock futures trading in Derivatives was maintained with a 103.9% increase
in the number of contracts in 1H11. The number of contracts in other derivative products
decreased.

■ At the end of the first half of 2011, €18,684 million in flows was channelled through the
Exchange, in the form of new shares and capital increases, a yoy increase of 156.0%.
The admissions to listing on the market rose with the listing of DIA on 5 July. Bankia and
Banca Cívica were subsequently admitted for listing on 20 and 21 July, respectively.

■ The efficiency ratio for the year to date is 30.7% versus 31.0% in 1H10, an improvement
of three tenths. This outperforms more than 15 points difference with the sector average.

■ Return on equity (ROE) was 35.1% YTD compared with 37.0% a year earlier. This repre-
sents a difference of more than 20 points with the sector average.

Financial Statements

BOLSAS Y MERCADOS ESPAÑOLES, SOCIEDAD HOLDING
DE MERCADOS Y SISTEMAS FINANCIEROS, S.A. AND 2Q11 2Q10 ∆ 1H11 1H10 ∆
SUBSIDIARIES COMPRISING THE BOLSAS Y MERCADOS
ESPAÑOLES GROUP
CONSOLIDATED PROFIT AND LOSS ACCOUNTS (Th.Eur.) (Th.Eur.) % (Th.Eur.) (Th.Eur.) %

Operating Income 76,832 95,865 -19.9% 161,742 173,414 -6.7%
Ordinary revenue on the provision of services 74,779 87,115 -14.2% 158,821 163,517 -2.9%
Other operating income 1,759 8,012 -78.0% 2,259 8,373 -73.0%
Capitalisation of development expenses 294 738 -60.2% 662 1,524 -56.6%

Operating Expenses (25,105) (29,344) -14.4% (49,627) (53,843) -7.8%
Staff costs (16,010) (18,786) -14.8% (31,072) (33,608) -7.5%
Operating and external expenses (8,953) (10,319) -13.2% (18,272) (19,853) -8.0%
Taxes and levies (142) (239) -40.6% (283) (382) -25.9%

Income before interest, taxes, net impairment losses
and depreciation 51,727 66,521 -22.2% 112,115 119,571 -6.2%

Depreciation and amortization charges (1,904) (1,989) -4.3% (3,839) (4,030) -4.7%
Net impairment losses (Fixed assets) (3) (3) 0.0% (3) (3) 0.0%

Income before interest and taxes 49,820 64,529 -22.8% 108,273 115,538 -6.3%

Net financial income 1,452 703 106.5% 2,158 1,019 111.8%

Share of profit (loss) of associates 62 (120) -151.7% (92) (233) -60.5%

Income before taxes 51,334 65,112 -21.2% 110,339 116,324 -5.1%

Corporate income tax (14,868) (16,738) -11.2% (32,393) (31,882) 1.6%

Profit attributable to the Group 36,466 48,374 -24.6% 77,946 84,442 -7.7%

Note: Balances obtained from the audited consolidated intermediate financial statements

BME: Profit attributable to The Group Net earnings of Bolsas y Mercados Españoles
(Quarterly series) (BME) for the first half of 2011 amounted to €77.9
Profit evolution
million, down 7.7% yoy. After extraordinary items
48.4 recorded in both years are stripped out, the aggre-
4.7
41.5 gate figure was 3.8% lower than that of the previous
Mill.€

43.7 37.6
0.5
1.2
36.5
year, and 10.0% above figure of 2H10. Net earnings
32.2 37.1
35.3 dropped 24.6% yoy (19.4% excluding extraordinary
items) reaching €36.5 million in the second quarter
of 2011.

Aggregate revenue in the six-month period totalling
2Q10 3Q10 4Q10 1Q11 2Q11 €161.7 million implied a 6.7% decrease with respect
to the previous year. Excluding extraordinary items,
revenue was 3.3% less than the previous year. Revenue amounted to €76.8 million in 2Q11, a yoy decrease of 19.9% (down
14.5% after adjusting for extraordinary income

Operating costs totalled €49.6 million in the first half of the year, down 7.8% yoy. Operating costs amounted to €25.1 million in
2Q11, down 14.4% yoy. Excluding the €4.0 million in extraordinary costs incurred in 2Q10, operating costs decreased by 0.4%
during this six-month period and 0.9% in the quarter.

EBITDA amounted to €112.1 million YTD, down 6.2% from 2010 (a 4.5% decline after adjusting for extraordinary items), and
dropped 22.2% in 2Q11 (a 19.9% drop excluding extraordinary items) to €51.7 million.

4 Bolsas y Mercados Españoles - Business performance -Interim Report (January - June 2011)


As for the main indicators for tracking financial mana-
gement, the efficiency ratios were 30.7% and 32.7%
for the six-month period and quarter, respectively,
compared with 31.0% and 30.6% in 2010. ROE
was 35.1% at the end of the first half of 2011 versus
37.0% in 2010, and it was 31.4% in 2Q11 and 40.8%
in 2Q10.

Revenue not linked to volumes amounted to 110%
of BME’s cost base at the end of the first half of the
year, up six points compared with the end of the first
half of 2010.

Bolsas y Mercados Españoles Group
2Q11 2Q10 ∆ 1H11 1H10 ∆
(Key Ratios)

Earnings per share 0.44 0.58 -24.6% 0.94 1.01 -7.7%
Efficiency ratio (%) 32.7% 30.6% 30.7% 31.0%
ROE (%) 31.4% 40.8% 35.1% 37.0%

BME: Return on Equity
(Quarterly series)
Consolidated ROE ratio evolution

40.8%
% ROE

35.6%
33.2%
31.4%
28.1%

2Q10 3Q10 4Q10 1Q11 2Q11

BME efficiency ratio
(Quarterly series)
Consolidated efficiency ratio evolution
(% Efficiency)

33.4% 32.7%
30.6% 31.3%
28.9%

2Q10 3Q10 4Q10 1Q11 2Q11

Bolsas y Mercados Españoles - Business performance -Interim Report (January - June 2011) 5


BOLSAS Y MERCADOS ESPAÑOLES, SOCIEDAD HOLDING DE MERCADOS Y as of as of
SISTEMAS FINANCIEROS, S.A. AND SUBSIDIARIES COMPRISING THE BOLSAS Y ∆
30/06/2011 30/06/2010
MERCADOS ESPAÑOLES GROUP

CONSOLIDATED BALANCE SHEETS AT CLOSING DATES (Th.Eur.) (Th.Eur.) %

NON-CURRENT ASSETS 169,642 170,316 -0.4%
Goodwill 82,190 80,619 1.9%
Other intangible assets 9,930 9,780 1.5%
Property, plant and equipment 48,537 51,736 -6.2%
Non-current financial assets 23,511 21,523 9.2%
Deferred taxes 5,474 6,658 -17.8%

CURRENT ASSETS 35,344,511 14,507,078 143.6%
Non-Group current financial assets 34,914,981 14,068,026 148.2%
Other current financial assets
Trade and other receivables 24,049 21,430 12.2%
Cash and cash equivalents 347,851 358,537 -3.0%
Tax assets 54,871 57,044 -3.8%
Other current assets 2,759 2,041 35.2%

TOTAL ASSETS 35,514,153 14,677,394 142.0%

SHAREHOLDERS´ EQUITY 444,474 459,269 -3.2%
Share capital 270,078 270,078 0.0%
Reserves 101,920 108,813 -6.3%
Profit attributable to the Group 77,946 84,442 -7.7%
(Treasury shares) (7,661) (7,661) 0.0%
Other equity instruments 390 2,510 -84.5%
Valuation reserves 1,801 1,087 65.7%

NON-CURRENT LIABILITIES 15,313 16,207 -5.5%
Provisions 6,534 9,466 -31.0%
Provisions for employee benefits 3,538 3,460 2.3%
Deferred taxes 4,548 3,270 39.1%
Other non-current financial liabilities 693 11 6,200.0%

CURRENT LIABILITIES 35,054,366 14,201,918 146.8%
Trade and other payables 18,711 16,970 10.3%
Non-Group current financial liabilities 34,914,981 14,067,913 148.2%
Tax liabilities 112,070 108,128 3.6%
Other current liabilities 8,604 8,907 -3.4%

TOTAL EQUITY AND LIABILITIES 35,514,153 14,677,394 142.0%


In order to apply the same presentation criteria as other European central counterparties, the Group includes in “Current
assets – Non-Group current financial assets” and “Current liabilities – Non-Group current financial liabilities”, by the same
amounts, fixed-income securities and options in which it acts as central counterparty, and guarantees and deposits received
from the market.

This presentation criteria has no impact on income or equity.



BOLSAS Y MERCADOS ESPAÑOLES, SOCIEDAD HOLDING DE MERCADOS Y
SISTEMAS FINANCIEROS, S.A. AND SUBSIDIARIES COMPRISING THE BOLSAS Y 1H11 1H10 ∆
MERCADOS ESPAÑOLES GROUP

CONSOLIDATED CASH FLOW STATEMENT (Th.Eur.) (Th.Eur.) %

Consolidated profit for the year before taxes 110,339 116,324 -5.1%
Corporate income tax (32,393) (31,882) 1.6%
Amortization and provisions 4,491 8,085 -44.5%
Other adjustments to the result (683) (1,096) -37.7%

Changes in working capital-
- Current financial assets (non Group) 83 (40) -307.5%
- Trade and other receivables (557) 506 -210.1%
- Tax assets (13,434) (18,039) -25.5%
- Tax liabilities 23,853 26,148 -8.8%
- Other current assets (2,020) (1,367) 47.8%
- Trade and other payables 1,665 (1,528) -209.0%
- Other current liabilities 8,278 8,635 -4.1%

Changes in non current assets and liabilities (198) (1,400) -85.9%

Net cash flows from operating activities 99,424 104,346 -4.7%

Net cash flows from investing activities (3,055) (1,196) 155.4%

Net cash flows from financing activities (68,301) (68,305) -0.0%

Net increase (decrease) in cash and cash equivalents 28,068 34,845 -19.4%

Cash and cash equivalents at the beginning of period 319,783 323,692 -1.2%
Cash and cash equivalents at the end of period 347,851 358,537 -3.0%


Note: For the purpose of clear presentation of changes in working capital, inflows of funds from guarantees and deposits received from the market which are invested
in current financial assets “Current assets – Non-Group current financial assets” in their entirety have not been included as a change in working capital. Financial
instruments of MEFF as a central counterparty and receivables on settlements of options and futures, have not been included either.


Quarter Overview

Highlights

■ On 28 April 2011 the company held its General Share-
holders’ Meeting at the Madrid Stock Exchange where the 1H11 1H10
management performance of the Board of Directors was rati-
fied and the items included in the agenda for discussion at the Euros Total Euros Total
Dividends per (Thousand per (Thousand
meeting were approved.
share Euros) share Euros)

These resolutions included the approval of the 2010 individual
Dividends payments
and consolidated Financial Statements and Management 0.600 49,967 0.600 49,967
against results
Report and the distribution of earnings from 2010 entailing a
final payout of €49,967 thousand (a gross of €0.6 per share),
which was paid on 6 May 2011. The Annual General Share- Dividends payments
0.372 30,980 0.372 30,980
against reserves
holders’ Meeting also approved the payment of an extraor-
dinary dividend of €30,980 thousand, equivalent to a gross
dividend of €0.372 per share, charged against reserves. This Total dividend payments 0.972 80,947 0.972 80,947

dividend was paid on 13 May 2011.

On 28 July 2011, BME informed the Spanish Securities Market Commission (CNMV) of the resolution adopted at the meeting of
the Company’s Board of Directors, held on the same date, to pay a first interim dividend charged against 2011 earnings of €0.4
gross per share. This interim dividend will be paid on 9 September 2011.

Bolsas y Mercados Españoles
2Q11 2Q10 ∆ 1H11 1H10 ∆
(Quaterly Overview)

Equity
Turnover (Mill. Eur.) 238,426 299,322 -20.3% 485,889 528,783 -8.1%
Number of trades 10,479,032 11,557,647 -9.3% 23,509,968 21,081,657 11.5%
Number of shares (Million) 38,226 36,963 3.4% 82,847 60,935 36.0%
Market Capitalisation (Mill. Eur.) 1,132,776 963,703 17.5%
Average amount per trade (Euros) 22,753 25,898 -12.1% 20,667 25,083 -17.6%

Clearing & Settlement
Operations settled 10,352,266 11,619,458 -10.9% 21,906,807 21,058,237 4.0%
Turnover settled (billion euros daily avg.) 323.0 320.7 0.7%
Nominal amount registered (billion euros) 1,615.2 1,508.4 7.1%

Listing
Investment Flows channeled through Exchange (Mill. Euros) 2,370 7,085 -66.5% 18,684 7,299 156.0%
AIAF Fixed Income volume admitted (nominal Mill. Euros) 68,290 53,031 28.8% 139,081 109,624 26.9%

Derivatives
Futures (number of contracts)
Index Futures 2,004,751 3,339,100 -40.0% 4,481,659 5,678,390 -21.1%
Stock Futures 8,437,226 3,927,137 114.8% 16,443,265 8,063,445 103.9%
Options (number of contracts)
Index Options 502,239 976,647 -48.6% 989,414 1,782,439 -44.5%
Stock Options 6,164,230 8,904,110 -30.8% 14,532,273 18,725,716 -22.4%
Open interest (number of contracts) 12,646,878 13,623,600 -7.2%

Fixed Income
Turnover (Mill. Eur.) 1,248,159 796,678 56.7% 3,115,643 1,440,086 116.4%


Quarter Overview

■ The number of trades executed in equities amounted to After 5 July the inclusion of companies into the main stock
23.5 million in 1H11, a yoy increase of 11.5%, whereas turno- market resumed with the admission to listing of DIA. Bankia
ver dropped €485.9 billion, 8.1% less than in 1H10. The tur- and Banca Cívica were subsequently admitted for listing on 20
nover traded in 2Q11 amounted to €238.4 billion, down 20.3% and 21 July, respectively.
yoy, where May 2010 was a month of record market activity.
The first capital increase of one of the members of the MAB’s
■ The number of operations settled in the first half of 2011 segment of growth companies, Gowex, took place. In the
climbed 4.0% to 21.9 million, up from 21.1 million in the first meantime, the admission to listing of Catenon, Lumar, Sec-
half of 2010. The average daily turnover settled in the period uoya and Griñó Ecologic, which are the latest companies to
was €323.0 billion, up 0.7% yoy. request admission, have moved forward.

The settlement, entry and registration of securities and trades The total volume of new issues admitted to listing on the AIAF
in LinkUp Markets, both free of payment and versus payment, fixed income market in 2Q11 increased 28.8% yoy to €68.3 bil-
were streamlined after Iberclear began trading with the German lion. This volume reached €139.1 billion YTD, up 26.9% yoy.
CSD Clearstream Banking A.G. Frankfurt (CBF) in February.
The establishment of a link with the Austrian CSD Oesterrei- ■ Private fixed income trading increased by 67.4% yoy to
chische Kontrollbank AG (OeKB) and Swiss CSD SIX SIS Ltd. €1.20 trillion. During the first half of 2011, trading was just
(SIS) is expected at the end of 2011. above €3 trillion, a yoy increase of 134.6%.

The processes of registering REGIS-TR members were com-
pleted and the financial entities began to register all cross
trades between them in interest rate derivatives. The first
records were received on 18 July. The second stage, which
includes registering currency derivatives and enabling supervi-
sors to access the system, is scheduled for the second half of
October.

■ The market capitalisation of companies admitted to listing
on the markets managed by BME stood at €1.13 trillion at 30
June 2011, up 17.5% with regard to June 2010.

Investment flows channelled through the Exchange in the first
half of 2011 amounted to €18.7 billion, an increase of 156.0%
over the amounts channelled through new shares and shares
admitted for listing in the first half of 2010.


Quarter Overview

Shareholder´s Equity Changes

BOLSAS Y MERCADOS ESPAÑOLES, SOCIEDAD HOLDING DE MERCADOS Y SISTEMAS
1H11 1H10
FINANCIEROS, S.A. AND SUBSIDIARIES COMPRISING THE BOLSAS Y MERCADOS
ESPAÑOLES GROUP
(CHANGE IN SHAREHOLDERS’ EQUITY) (Th.Eur.) (Th.Eur.)

Shareholders’ equity – opening balance 448,429 453,161

Supplementary dividend (49,967) (49,967)
Extraordinary dividend (30,980) (30,980)
Valuation reserves (784) 2,034
Equity instruments 390 579
Business combinations (560) 0
Net income/loss in reporting period 77,946 84,442

Shareholders’ equity – closing balance 444,474 459,269

Staff

2Q11 2Q10 1H11 1H10
(Staff)(*)

Average number of staff 706 713 703 713
Employees as at balance sheet date 708 713 708 713

(*) Staff includes, for this purpose, only the 50% of the staff of Infobolsa.

Efficiency

The first half of 2011 once again provided maximum operat- The indicator stood at 32.7% for 2Q11 and 30.7% YTD,
ing efficiency levels in this indicator. The further containment versus 30.6% and 31.0%, respectively, in 2010. After adjust-
of operating costs, down 7.8% in the period, gave rise to an ment for extraordinary items, the efficiency ratio in 2011 stood
improvement in the cost-to-income ratio. at 30.9% vs 30.0% in 2010.

BME efficiency ratio
2010 2011
(Cumulative and quarterly series)

Consolidated efficiency ratio evolution
(% Efficiency)

32.7% 31.0% 30.7%
30.6%

2Q10 - 2Q11 1H10 - 1H11


Share Information

Share Performance

In 2Q11 the return of tension in the debt markets and doubts The differential behaviour with regard to the market began in
with regard to the recovery, strength and growth of the economy late 2010, since when the share price has risen 15.1% while
caused the prices of securities markets to drop. In this regard, the IBEX 35® reference indicator has increased 5.1%.
BME’s share price was likewise affected and closely linked to
the overall change of the market, measured by its IBEX 35® The turnover daily average traded in 1H11 increased by 3.6%
reference index. The IBEX 35® registered a 4.8% decrease in and in 2Q11 by 9.0%, in both cases yoy. The number of trades
the quarter, while BME’s share price decreased 6.3%, closing in 2Q11 was 14.6% higher than in the same period last year.
the quarter at €20.53 per share. According to this closing refer- The volume of trades increased 12.9% yoy in the first half of
ence, BME’s share price has risen 14.6% since the end of the 2011. The volume of shares traded in 2Q11 was unchanged
first half of 2010, outperforming the market, as the IBEX 35® from 2Q10 and was very similar in half-year terms (down 1.2%),
index rose 11.8% during this same period. which reflects the effect of the price trend on turnover traded.

BME: Share performance
Quarterly BME's turnover and share performance evolution
24 80

23
volume Closing 70

22 60

21 50

Turnover (Mill. Euros)
20 40
ce
Pric

19 30

18 20

17 10

16 0
01/04

07/04

13/04

19/04

27/04

03/05

09/05

13/05

19/05

25/05

31/05

06/06

10/06

16/06

22/06

28/06

04/07

08/07

14/07

2Q11 2Q10 ∆ 1H11 1H10 ∆
(Share performance)

BME's share performance
Higher quote 23.50 21.85 7.6% 23.65 23.96 -1.3%
Lower quote 19.03 17.31 9.9% 17.53 17.31 1.2%
Average quote 21.50 19.55 10.0% 21.22 20.21 5.0%
Closing quote 20.53 17.91 14.6%
BME's trading daily turnover (Mill. Euros)
Higher daily turnover 33.8 32.8 3.0% 79.4 56.9 39.5%
Lower daily turnover 2.9 2.3 26.1% 2.9 2.3 26.1%
Average daily turnover 12.1 11.1 9.0% 14.5 14.0 3.6%

BME's shares trading (Mill. Shares) 35.2 35.2 0.0% 85.7 86.7 -1.2%

BME's number of trades 82,256 71,752 14.6% 192,676 170,716 12.9%


Business Units Quarter Overview

Bolsas y Mercados Españoles Market
Clearing & Fixed IT &
(Business Units 1H11) Equity Listing Data & Derivatives
Settlement Income Consulting
(Thousands of Euros) Information

Revenues 68,906 37,798 11,580 16,187 12,541 4,645 7,733
Operating Costs (16,111) (6,919) (4,635) (3,234) (5,686) (1,476) (5,310)
EBITDA 52,795 30,879 6,945 12,953 6,855 3,169 2,423

Key Investment Highlights
Key Financial Business Units overview
EBITDA evolution by Business Unit (1H11)

2010 2011

58,131
(Th. Euros)

52,795

32,136 30,879
32 136 30 879

12,366 12,953
8,222 6,855
6,037 6,945
2,615 3,169 1,881 2,423

EQUITY CLEARING & LISTING MARKET DATA & DERIVATIVES FIXED INCOME IT & CONSULTING
SETTLEMENT INFORMATION

Bolsas y Mercados Españoles Revenues

Business Units Revenues (Thousands of Euros) 2Q11 2Q10 ∆ 1H11 1H10 ∆

Equity 30,514 39,428 -22.6% 68,906 74,145 -7.1%
Clearing & Settlement 18,813 21,383 -12.0% 37,798 38,811 -2.6%
Listing 5,328 5,958 -10.6% 11,580 11,005 5.2%
Market Data & Information 8,346 7,808 6.9% 16,187 15,526 4.3%
Derivatives 5,712 7,296 -21.7% 12,541 13,687 -8.4%
Fixed Income 2,347 1,866 25.8% 4,645 3,953 17.5%
IT & Consulting 4,043 3,646 10.9% 7,733 7,036 9.9%
Total 75,103 87,385 -14.1% 159,390 164,163 -2.9%
Corporate Unit 3,905 10,485 -62.8% 6,648 13,446 -50.6%
Consolidation adjustments (2,176) (2,005) 8.5% (4,296) (4,195) 2.4%
Consolidated 76,832 95,865 -19.9% 161,742 173,414 -6.7%

Bolsas y Mercados Españoles EBITDA

Business Units EBITDA (Thousands of Euros) 2Q11 2Q10 ∆ 1H11 1H10 ∆

Equity 22,380 31,401 -28.7% 52,795 58,131 -9.2%
Clearing & Settlement 15,191 18,216 -16.6% 30,879 32,136 -3.9%
Listing 3,010 3,452 -12.8% 6,945 6,037 15.0%
Market Data & Information 6,506 6,268 3.8% 12,953 12,366 4.7%
Derivatives 2,805 4,506 -37.7% 6,855 8,222 -16.6%
Fixed Income 1,600 1,185 35.0% 3,169 2,615 21.2%
IT & Consulting 1,400 1,035 35.3% 2,423 1,881 28.8%
Total 52,892 66,063 -19.9% 116,019 121,388 -4.4%
Corporate unit (1,165) 458 -354.4% (3,904) (1,817) 114.9%
Consolidation adjustments 0 0 0 0
Consolidated 51,727 66,521 -22.2% 112,115 119,571 -6.2%



Equity

Revenue of the equity business unit in the first half of 2011 down 8.1% yoy. The number of trades in the first half of 2011
amounted to €68,906 thousand, a 7.1% decline yoy. EBITDA increased by 11.5% yoy to 23.5 million. In 2Q11, €238.4 billion
dropped by 9.2% to €52,795 thousand in this period. In 2Q11, in equity was traded, a yoy decrease of 20.3%, where May
revenue and EBITDA fell by 22.6% and 28.7%, respectively, to 2010 was a month of record trading. The number of trades in
€30,514 thousand and €22,380 thousand. 2Q11 dropped by 9.3% yoy to 10.5 million.

In 1H11, the turnover traded in equities was €485.9 billion, Turnover in the warrants and certificates market was down

2Q11 2Q10 ∆ 1H11 1H10 ∆
(Equity Business Unit Income) (Th.Eur.)

Revenues 30,514 39,428 -22.6% 68,906 74,145 -7.1%
Operating Costs (8,134) (8,027) 1.3% (16,111) (16,014) 0.6%
EBITDA 22,380 31,401 -28.7% 52,795 58,131 -9.2%

Equity Business unit
Activity Overview
Turnover, Trades and Shares (Monthly basis)

118 115
108
100 98 99

81 82 82 83
72 74
44
4.4 63 46
4.6 46
4.6 67 46
4.6
54 3.4 3.8 3.5
3.4 3.8 3.3 3.4
3.1 2.9
2.5 3.5
21.3 23.4
14.3 15.2 15.6 18.1
10.1 12.6 11.3 10.5 10.7 9.3 10.8
6.3 7.4

4/10 5/10 6/10 7/10 8/10 9/10 10/10 11/10 12/10 1/11 2/11 3/11 4/11 5/11 6/11
Turnover (€ Bill.) Shares (Bill.) Trades (Mill.)

Equity Business unit
Activity Overview
Turnover, trades and Shares traded (Quarterly basis)

299 295

247 238
216

13.0
11.6
11 6 11.2
10.5
8.5
52.0 44.6
37.0 38.2
25.0

2Q10 3Q10 4Q10 1Q11 2Q11

Turnover (€ Bill.) Shares (Bill.) Trades (Mill.)



41.7% on 2Q11 to €296 million. The number of trades also fell, Exchange-traded funds (ETFs) saw a decrease of 79.0% yoy
by 47.6% yoy, in the second quarter. During the first six months in turnover trading volumes and 62.7% in the number of trades
of 2011, turnover was down by 9.9% and the number of trades in 2Q11. During the first six months of 2011, turnover traded
dropped by 26.2%. was down by 62.3% and the number of trades decreased by
45.2%.

2Q11 2Q10 ∆ 1H11 1H10 ∆
(Equity Business Unit Activity Overview)

TRADING (Mill. Euros) 238,426 299,322 -20.3% 485,889 528,783 -8.1%
Equity
Turnover (Mill. Euros) 237,559 296,099 -19.8% 483,470 523,543 -7.7%
Number of trades 10,410,836 11,421,119 -8.8% 23,341,210 20,842,638 12.0%
Average amount per trade (Euros) 22,818 25,926 -12.0% 20,713 25,119 -17.5%
Exchange Traded Funds (ETFs)
Turnover (Mill. Euros) 571 2,715 -79.0% 1,653 4,390 -62.3%
Number of trades 8,154 21,863 -62.7% 22,091 40,343 -45.2%
Warrants
Turnover (Mill. Euros) 296 508 -41.7% 766 850 -9.9%
Number of Trades 60,042 114,665 -47.6% 146,667 198,676 -26.2%

Number of shares (Mill. Shares) 38,226 36,963 3.4% 82,847 60,935 36.0%

CAPITALISATION (Mill. Euros) 1,132,776 963,703 17.5%



Clearing & Settlement

The Settlement unit reported EBITDA of €15,191 thousand Equity and Fixed Income (both private and public) markets
in 2Q11 and a cumulative €30,879 thousand in 1H11. These totalled €1.62 trillion, representing yoy growth of 7.1%.
amounts represent a decrease of 16.6% and 3.9% yoy,
respectively. Income contributed by the unit’s activities regard- The number of operations settled in the first half climbed 4.0%
ing settlement, registration and services provided to issuers to 21.9 million, up from 21.1 million in the first six months of
decreased by 2.6% to €37,798 thousand in 1H11 and by 12.0% 2010. The average daily turnover settled in the period was
to €18,813 thousand in 2Q11. €323.0 billion, up 0.7% yoy.

Stripping out the impact of the default management serv- On 25 May Circular 4/2011 on changes in tariffs and penalties
ice’s activity, the unit’s registration revenue in the first half of was approved. This Circular changes the tariffs applied by set-
2011 climbed 6.1% (7.9% in 2Q11), while settlement revenue tlement and registration services for trading securities under
decreased by 11.5% (27.9% in 2Q11). Chapter V of Iberclear’s Regulations, approving the tariffs to be
applied to OTC and SMNs trading.
The nominal amount registered by the end of 1H11 in the

2Q11 2Q10 ∆ 1H11 1H10 ∆
(Clearing & Settlement Business Unit Income) (Th.Eur.)

Revenues 18,813 21,383 -12.0% 37,798 38,811 -2.6%
Operating Costs (3,622) (3,167) 14.4% (6,919) (6,675) 3.7%
EBITDA 15,191 18,216 -16.6% 30,879 32,136 -3.9%

C&S Business unit
Activity Overview

Number of transactions settled (Quarterly basis)

11,619,458 11,799,844 11,554,541
Operations settled

10,352,266

8,831,625

2Q10 3Q10 4Q10 1Q11 2Q11



After Iberclear began trading in LinkUp Markets with the Financial entities have completed their processes of registering
German CSD Clearstream Banking A.G. Frankfurt (CBF) in as REGIS-TR members. With these processes completed, the
February, the settlement, entry and registration of securities entities are beginning to register all cross trades between them
and trades, both free of payment and against payment, was in interest rate derivatives. The first trades registered were
carried out in 2Q11 among participating entities and the afore- received on 18 July.
mentioned CSD.
Delivery of the second stage of the system is scheduled for
In addition, is taking place the development work and tests nec- the second half of October. This delivery includes registering
essary to establish the link with the Austrian CSD Oesterreich- currency derivatives and enabling supervisors to access the
ische Kontrollbank AG (OeKB) and the Swiss CSD SIX SIS Ltd. system.
(SIS) by the end of the year.

2Q11 2Q10 ∆ 1H11 1H10 ∆
(Clearing & Settlement Business Unit Activity Overview )

Operations settled 10,352,266 11,619,458 -10.9% 21,906,807 21,058,237 4.0%
Turnover settled (billion euros daily avg.) 323.0 320.7 0.7%
Nominal amount registered (billion euros) 1,615.2 1,508.4 7.1%



Listing

Income in the Listing unit decreased by 10.6% to €5,328 At 30 June 2011, 3,094 SICAVs had been admitted to trading
thousand in 2Q11 and by €11,580 thousand in 1H11 (up on the Alternative Equity Market (MAB), a 3% decrease yoy.
5.2%). EBITDA in 2Q11 amounted to €3,010 thousand, a yoy
decrease of 12.8%, and totalled €6,945 thousand YTD, for a The number of warrants admitted for trading in the first six
15.0% increase. months of 2011 dropped 12% yoy to 3,724.

At 30 June 2011, the total market capitalisation of companies The number of ETFs admitted for trading was 65 and another
admitted to listing on markets managed by BME stood at €1.13 9 ETFs are expected to be admitted.
trillion, up 17.5% yoy.
The value of the total volume of new issues admitted to listing
Investment flows channelled through the Exchange in the on the AIAF fixed income market in 2Q11 increased 28.8% yoy
first half of 2011 amounted to €18.7 billion, 156.0% above the to €68.3 billion. The value of the total volume for 1H11 reached
amount channelled as new shares and listed shares in the first €139.1 billion, a 26.9% increase.
half of 2010. Within the flows channelled into listed shares in
2Q11, the capital increases of Gas Natural and BBVA are par- Current assets (company promissory notes) were at a low
ticularly noteworthy. admission to trading level, as in previous quarters, with a mon-
thly average of only 7,700 million; however, this represents a
On 5 July DIA was admitted to listing in the general trading 23.5% increase over 2H10. Still, compared to the year-ago
segment. In this segment, as a result of the process of restruc- period, the drop was 14.1%.
turing the financial sector, the first admissions to listing, in ordi-
nary shares, of companies in the Savings Bank sector, Bankia The increases were due to the increase in medium- and long-
and Banca Cívica took place on 20 and 21 July. term assets (up 31.6%), which resulted mainly from the growth
in issues of covered and securitised bonds, with numerous
On 6 June Catenon was incorporated into the MAB’s segment issues taking advantage of the relaxation of the country risk
of growth companies. On 6 July Lumar was admitted to lis- premium in April and May. The six-month period ended with an
ting, increasing the number of companies in this segment to increase of 69.9%.
15. In this same segment, Gowex carried out its first capital
increase. However, the continued deterioration of the debt crisis in June
caused a slowdown in the recovery of outstanding balances,
On 30 June a report was issued in favour of the incorporation which ended 1H11 at €848.3 billion for 0.6% yoy increase.
of Secuoya into the MAB for high growth companies and on 4
July the same was done regarding the incorporation of Griñó
Ecologic.

2Q11 2Q10 ∆ 1H11 1H10 ∆
(Listing Business Unit Income) (Th.Eur.)

Revenues 5,328 5,958 -10.6% 11,580 11,005 5.2%
Operating Costs (2,318) (2,506) -7.5% (4,635) (4,968) -6.7%
EBITDA 3,010 3,452 -12.8% 6,945 6,037 15.0%

2Q11 2Q10 ∆ 1H11 1H10 ∆
(Listing Business Unit Activity Overview)

Equity Market
Number of Companies listed 3,355 3,436 -2.4%
Market Capitalisation listed (Mill.Euros) 1,132,776 963,703 17.5%
New shares nominal listed (Mill. Euros) 42 52 -19.2% 1,025 108 849.1%
Investment Flows channeled through Exchange (Mill. Euros)
New listed companies 95 5,456 -98.3% 8,527 5,595 52.4%
Already listed companies 2,275 1,629 39.6% 10,157 1,704 496.1%
Fixed Income Market
AIAF Fixed Income volume admitted (nominal Mill. Euros) 68,290 53,031 28.8% 139,081 109,624 26.9%
Public Debt Outstanding Balance (Mill. Euros) 621,400 540,820 14.9%
Private Fixed Income Outstanding Balance (Mill. Euros) 848,296 843,513 0.6%



Market Data & Information

Revenue of the Information unit rose by 6.9% to €8,346 The content offering was expanded as a result of the incorpora-
thousand in 2Q11 and by 4.3% to €16,187 thousand YTD. Once tion of data from the MEFF Energía platform, the integration of
operating costs incurred are discounted, EBITDA generated by new instruments to the ETF and warrant markets and the MAB,
the unit amounted to €6,506 thousand (up 3.8%) in 2Q11 and and the launching of three new indexes based on the IBEX 35®
€12,953 thousand (up 4.7%) in 1H11. (the IBEX 35® Doble Apalancado Bruto, the IBEX 35® Doble
Apalancado Neto and the IBEX 35® Capped Net). The develo-
The trend seen in previous periods for the total number of pment of a series of End-of-Day and Reference Data informa-
customers to grow was extended with an increase of 10.6% tion products was also completed. The products will begin to be
over 2Q10 and similar growth was seen in the number of cus- marketed in early 3Q11.
tomers with a direct connection to BME’s information servers
(up 10.7%).

2Q11 2Q10 ∆ 1H11 1H10 ∆
(Information Business Unit Income) (Th.Eur.)

Revenues 8,346 7,808 6.9% 16,187 15,526 4.3%
Operating Costs (1,840) (1,540) 19.5% (3,234) (3,160) 2.3%
EBITDA 6,506 6,268 3.8% 12,953 12,366 4.7%



Derivatives

The overall volume of contracts traded in the derivatives busi- in 1H11 (down 8.4%) and €5,712 thousand in 2Q11 (down
ness line in the second half of 2011 remained similar to the 21.7%). EBITDA dropped by 16.6% in the half year and 37.7%
same period of 2010, dropping by only 0.2%. The volume in in the quarter, to €6,855 thousand and €2,805 thousand, res-
the first half of 2011 was 6.4% above the volume traded in the pectively.
same period last year.
Trading in IBEX 35® futures and options contracts fell com-
BME was able to maintain the global volume of contracts pared to 2Q10 which saw an increase in trading as a result of
traded as a result of the growth during the year in stock futures, the debt market situation and the effect on the Spanish market
whereas the other derivative products arranged decreased in of refinancing and bailing out Greece, Portugal and Ireland.
2Q11, which in turn led to overall decreases in the six-month Overall, the notional volume represented by trading in this seg-
period. ment fell by 36.0% in the quarter and 22.3% for the six-month
period.
The lower margin contributed by the stock futures contracts
affected the unit’s results. Revenue from trading in the various Contracts on individual stocks performed favourably. This was
underlying assets offered by the unit totalled €12,541 thousand especially true of stock futures, the volume of which increased

2Q11 2Q10 ∆ 1H11 1H10 ∆
(Derivatives Business Unit Income) (Th.Eur.)

Revenues 5,712 7,296 -21.7% 12,541 13,687 -8.4%
Operating Costs (2,907) (2,790) 4.2% (5,686) (5,465) 4.0%
EBITDA 2,805 4,506 -37.7% 6,855 8,222 -16.6%

Derivatives Business unit
Activity Overview
Index derivatives contracts traded

IBEX 35® Futures MiniIBEX 35® Futures IBEX 35® Options
umber of contracts (Th.)

2,053

1,575
1,433
1,286 1,327 1,281
Nu

977
900
801
699 723 723
489 487 502

2Q10 3Q10 4Q10 1Q11 2Q11

Derivatives Business unit
Activity Overview
Stock derivatives contracts traded

Stock Futures Stock Options
umber of contracts (Th.)

10,744

8,904
8,137 8,368 8,437
8,006
6,651
6,164
Nu

4,970
3,927

2Q10 3Q10 4Q10 1Q11 2Q11



by 114.8% in the quarter and 103.9% in the first half of 2011. The number of transactions in the quarter fell 39.6% to 1.12
Stock options maintained their high trading levels, although million.
lower than the previous year. The combined notional value of
stock derivatives increased by 11.8% in the quarter and 6.0% Volume in MEFF’s clearing house, MEFFRepo, increased signi-
in the six-month period. ficantly. The number of participating entities increased from 14
in June 2010 to 34 in June 2011. A key indicator of the clearing
The open interest at 30 June 2011 was 12.6 million contracts, house’s higher volume is that financing increased from €6,612
7.2% less than a year earlier. million to €28,681 million (in both cases, using the moving ave-
rage of the last 10 business days of the month).

2Q11 2Q10 ∆ 1H11 1H10 ∆
(Derivatives Business Unit Activity Overview)

Derivatives Contracts (number of contracts) 17,108,446 17,146,994 -0.2% 36,446,611 34,249,990 6.4%
Index Derivatives (number of contracts)
IBEX 35® Index Futures 1,280,699 2,053,136 -37.6% 2,855,971 3,520,771 -18.9%
Mini IBEX 35® Index Futures 722,652 1,285,964 -43.8% 1,623,133 2,157,619 -24.8%
IBEX 35® Div Impact Futures 1,400 0 - 2,555 0 -
IBEX 35® Index Options 502,239 976,647 -48.6% 989,414 1,782,439 -44.5%
Total notional value (Mill.Euros) 144,809 226,391 -36.0% 315,850 406,246 -22.3%
Equity Derivatives (number of contracts)
Equity Futures 8,437,226 3,927,137 114.8% 16,443,265 8,063,445 103.9%
Equity Options 6,164,230 8,904,110 -30.8% 14,532,273 18,725,716 -22.4%
Total notional value (Mill.Euros) 16,733 14,967 11.8% 35,204 33,209 6.0%
Open Interest (number of contracts) 12,646,878 13,623,600 -7.2%
Number of Trades 1,119,193 1,852,523 -39.6% 2,574,746 3,209,084 -19.8%



Fixed Income

This business unit includes only fixed income trading. The number of trades totalled 205,956, which represents a
25.2% rise, although if only trading to maturity is considered the
Operating income obtained in 2Q11 was up by 25.8% to €2,347 increase would stand at 30%.
thousand, and up 17.5% to €4,645 thousand YTD. EBITDA was
up 35.0% to €1,600 thousand for the quarter and up 21.2% to The SEND platform for trading issues aimed at retail investors
€3,169 thousand for the half year. continues to perform positively after its first year of operations.

In 2Q11, trading in the Fixed Income business unit stood at Trading on the platform for public debt amounted to €28.2 billion
€1.25 trillion, a yoy increase of 56.7%. in 2Q11 and €55.5 billion YTD, which represents yoy decrea-
ses of 56.9% and 53.3%, respectively. These drops are attri-
Trading in Private Fixed Income grew by 67.4% yoy to €1.20 tri- butable to the declining repo trading, which was transferred
llion. The greatest percentage of this volume relates to repo and to the MEFFRepo clearing house, whereas trading to maturity
simultaneous trading; trading to maturity decreased by 5.5%. In increased by 31.5% in the quarter and 20.4% in the six-month
the first half of 2011, trading was slightly more than €3 trillion, period.
for a 134.6% yoy increase.

2Q11 2Q10 ∆ 1H11 1H10 ∆
(Fixed Income Business Unit Income) (Th.Eur.)

Revenues 2,347 1,866 25.8% 4,645 3,953 17.5%
Operating Costs (747) (681) 9.7% (1,476) (1,338) 10.3%
EBITDA 1,600 1,185 35.0% 3,169 2,615 21.2%

Fixed Income
Activity

Fixed Income Turnover

Other Equity Market Fixed Income Public Debt Private Fixed Income

12,771
27,357
18,981
(Mill. Euros)

41,659
17,747
28,163
13,612
12,967 76,107 1,827,356
65,347 1,473,821
1,202,249
893,820
718,364

2Q10 3Q10 4Q10 1Q11 2Q11

2Q11 2Q10 ∆ 1H11 1H10 ∆
(Fixed Income Business Unit Activity Overview)

Public Debt Turnover (Mill. Euros) 28,163 65,347 -56.9% 55,520 118,825 -53.3%
Private Fixed Income Turnover (Mill. Euros) 1,202,249 718,364 67.4% 3,029,605 1,291,207 134.6%
Other Equity Market Fixed Income Turnover (Mill. Euros) 17,747 12,967 36.9% 30,518 30,054 1.5%

Fixed Income Total Turnover (Mill. Euros) 1,248,159 796,678 56.7% 3,115,643 1,440,086 116.4%



IT & Consulting

Income from the IT and Consulting unit amounted to €4,043 first introduced to comply with implementing legislation in the
thousand in 2Q11, up 10.9% yoy. The joint contribution of the Spanish market, while several tenders were in their final rating
various services offered in the unit generated revenue of €7,733 phases.
thousand in the first half of 2011, up 9.9% on 2010. Once oper-
ating costs incurred are discounted, the unit’s EBITDA was With regard to back-office services, the spectrum of alternative
€1,400 thousand (up 35.3%) and €2,423 thousand (up 28.8%) technological infrastructure services was broadened and new
in 2Q11 and 1H11, respectively. customers and financial communication features were incor-
porated into BME Highway. In terms of compliance with leg-
Post-trading and trade-routing services raised by 28.1% the islation, the credit institutions were incorporated as regulatory
percentage of orders traded at BME (Equity) through Visual reporting clients. Also, the second phase of SICAM phase was
Trader, and the number of orders managed increased by 85.9% launched, which implies analysing the orders. This will allow for
over the first half of 2010. The number of VT-maX terminals the detection of conduct that may constitute market manipula-
installed in 1H11 increased by 10%. tion. This second phase will be executed in the second half of
2011. The 7.5% increase of customers in this service in 2011
With regard to consulting, the six-month period was char- is noteworthy.
acterised by the wide acceptance, in other markets, of tools

2Q11 2Q10 ∆ 1H11 1H10 ∆
(IT & Consulting Business Unit Income) (Th.Eur.)

Revenues 4,043 3,646 10.9% 7,733 7,036 9.9%
Operating Costs (2,643) (2,611) 1.2% (5,310) (5,155) 3.0%
EBITDA 1,400 1,035 35.3% 2,423 1,881 28.8%


BME Financial Results 1H11

Recommended

Recommended

More Related Content

What's hot

What's hot (19)

Viewers also liked

Viewers also liked (9)

Similar to BME Financial Results 1H11

Similar to BME Financial Results 1H11 (20)

More from BMEGroup

More from BMEGroup (18)

Recently uploaded

Recently uploaded (20)

BME Financial Results 1H11