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					• LacDebt Group: Visit Program, Brazilian
                        National Treasury
                     Murilo Robotton Filho
                        Chief Products Officer

                                October 2008


                                                 1
                       Roadmap to the New Exchange


   3Q07               4Q07         1Q08                 2Q08       3Q08

Demutualization                     Merger               Merger    Operational
                       IPO
                                 Announcement           Approval   Integration




                  Shareholders                  Shareholders




                         50%                      50%




                                                                                 2
           The Combined Exchange at a Glance


 3rd Largest Exchange in The
World and 2nd in the Americas
       by Market Value

        Leadership in Latin America
       and Strongly Positioned in the
                  World

              Efficient and Safe Trading and
                Clearing Infra-Structure

                      Standard Setter of Corporate
                          Governance in Brazil

                                Worldwide connection
                                                       3
                                                                  Combined Exchange
                                              A Complete Chain of Products and Services




                                  Operating a vertically integrated exchange,
                          offering multi-asset class markets and main business lines

                 Cash and Spot Markets                                                           Derivatives Markets
Equities                              Fixed Income                     Equities                                Fixed Income (Options & Futures)
-   Stocks                            -       Federal                  -    Stock Options                      -       Interest rate
-   International Companies                   Government Bonds         -    Stock Index Futures, Options, and -        Dollar denominated domestic yield
    (BDR)                             -       Debentures                    Options on Futures                         curve
-   Closed-End Funds                  -       Commercial Papers        -    Futures on Stocks                  -       Interest rate x price index
-   Exchange Traded Fund (ETF)        -       Mortgage-Backed          -    Forwards                           -       (PPI/CPI) spread
-   Real-Estate Investment                    Securities               -    Warrants                           -       Price index (PPI/CPI)
    Trust (REIT)                      -       Asset Backed             -    POP (Protected and Participative -         Sovereign debt bond (Global Bond,
                                              Securities (FDIC)             Investment)                                A Bond, US Treasury)
Corporate Governance Levels
                                      -       NEW: Corporate                                                   -       CDS (SPOT Market)
-   Novo Mercado                              Governance Bonds     Structured Products
-   Level 2                                                        -       Spread Strategies
                                          Currencies
-   Level 1                                                        -       Volatility Trading (Stock Index,        Currencies
                                          -    US Dollar
-   BOVESPA MAIS (SMEs)                                                    Interest Rate, Exchange Rate)           -    US Dollar
                                                                   -       Forward Rate Agreements
Indexes (Benchmarks)                  Commodities
                                                                   OTC                                             Commodities (Options & Futures)
-   IBOVESPA, IBrX100, IBrX50,        -       Gold
    IVBX-2                                                         -       SWAPs (Interest Rate, Exchange        -      Arabica Coffee     - Conillon Coffee
-   Sectorial: IEE (Energy), ITEL                                          Rate, Price Index, Stock Index, Gold) -      Sugar              - Ethanol
    (Telecom), INDX (Industrial)                                   -       Flexible Options (Stock Index,          -    Cotton             - Corn
-   Corporate Governance: IGX, ITAG                                        Exchange Rate, Interest Rate)           -    Soybean            - Live cattle
-   Corporate Sustainability Index                                 -       Metals                                  -    Feeder cattle

                                              Clearing, Depository and Settlement Bank
                 -Central Counterparty / Risk Management                      -Securities Lending Program – stocks and corporate bonds
                       -Final Beneficial Owner Market                                               -Repo for Collaterals
                                                                                                                                                               4
                                  Business Model

                      Complete Array of Services


                   Cash Market Trading - shares, bonds and FX

                             Derivatives Market Trading
single shares options and forward, interest rates, FX, Indexes, Commodities and OTC

                                      Listing

                                   Market Data

                                 Indices Licensing

                                Software Licensing

                             Clearing and Settlement

                                Securities Lending

                                    Depository

                                     Custody




                          High Competitive Edge
                                                                                      5
                  Main Goals of the New Exchange



To become an integrated exchange, offering a full
 range of services, one stop shop


To offer innovative and multi asset class products and
 the state of the art in trading and clearing


To be a global player and the hub for Latin America
 securities




                                                          6
                     Strategies and Opportunities


Direct Market Access for derivatives


CME Globex Agreement


IT opportunities: merging the trading systems and the
 clearings


Collateralization in USA for financial derivatives


Innovation capacity


New products and services opportunities

                                                         7
CME Group Agreement Enhances Global
Presence of BM&F SA Products




                         Global distribution, 4 continents
                         Thousands of trading terminals




    Mostly local distribution
    66 brokerage firms
    670 GTS terminals




                                                             8
                      Trading, Registration & Clearing Model




 Derivatives                                  Stocks and           Government
                       FX Cash Market
   Open outcry                              Corporate Bonds          Bonds
                           Open outcry                              Electronic trading
 Electronic trading                           Electronic Trading
                         OTC registration                           OTC registration
 OTC registration                             OTC Registration




 Derivatives                                                         Securities
                      FX Clearinghouse            CBLC
Clearinghouse                                                      Clearinghouse




                                                                                         9
  BOVESPA’s Markets:
Equity, Equity Derivatives
  and Corporate Bonds
          Markets

                             10
                                 PRODUCTS AND SERVICES:
                                     Equity Markets


                                     Equity         Corporate      Depository
                    Cash
   Listing                         Derivatives        Bonds           and
                   Trading
                                    Trading          Trading        Clearing

Brazilian       Stocks          Stock Options   Debentures     Central
Companies        Brazilian                                        Counterparty
                                  Index Options   Commercial
International   Depositary       (IBovespa and    Papers          Securities
Companies        Receipts         IBrX)                            Settlement
                                                   Mortgage-
SMEs            (BDRs)          Forward         Backed          Services
Closed-End      Real Estate     Contracts        securities      Central
Funds            Investment       Warrants        Asset-backed   Securities
                 Funds (REITs)                     securities      Depository
Equity                            POP -
Products                                           (FIDC)          Securities
                 Exchange        Protected and
                                                                   Lending
Corporate       Traded Fund      Participative   Corporate      Program
Fixed            (ETF)            Investment       Governance
                                                                   Final Beneficial
Income                                             Bonds
                                                                   Owner Market
Products
                                                                   Corporate
                                                                   Actions Services




                                                                                       11
                                                                                        11
                                    PRODUCTS: BENCHMARKS
                                 A Comprehensive List of Indices


    OVERALL MARKET                       SECTOR BASED                              CORPORATE
       INDICES                              INDICES                               GOVERNANCE
                                                                                    INDICES
                                IEE – ELECTRIC POWER INDEX
                                Most liquid companies of the electric
IBOVESPA - BOVESPA INDEX         power sector
                                                                         IGC – CORPORATE GOVERNANCE
Companies representing 80% of
                                                                         INDEX
the total trading value
                                                                         Companies traded in the Novo Mercado
                                ITEL – TELECOMMUNICATIONS
                                                                          or Levels 1 and 2
                                INDEX
IBrX-50 – BRAZIL INDEX 50       All companies in the telecommunication
50 most liquid shares of the    sector
                                                                         ITAG – TAG ALONG COMPANIES’
cash market
                                                                         INDEX
                                                                         Companies that offer tag along rights
IBrX - BRAZIL INDEX             INDX – INDUSTRIAL SECTOR
                                                                         to all shares
100 most liquid shares of the   INDEX
cash market                     Industry most representative stocks
                                                                         ISE - CORPORATE SUSTAINABILITY
                                                                         INDEX
IVBX – Valor BOVESPA INDEX
                                                                         Companies committed to environmental,
50 second tier companies        Real Estate Index
                                                                         social and corporate governance issues
                                (to be launched soon)




                                                                                                                 12
                  100
                        200
                              300
                                    400
                                          500
                                                600




              0
     dec/03

     apr/04

     aug/04

     dec/04

     apr/05

     aug/05

     dec/05

     apr/06
                                                                                          IBOVESPA




     aug/06

     dec/06

     apr/07

     aug/07

     dec/07
                                                      32%




     apr/08
                                                            7M2007 – 7M2008
                                                                              AMONG THE TOP PERFORMING MARKETS




13
                          Trading Value
                  Financial Trading with Stocks



                               2002 - 7M2008 CAGR
                                             $ 3.7
                                             billio n




 81% of Latin America
Trading Value in Equities        $ 198
                                 millio n


                                 2002       7M2008


                                                        14
                    CORPORATE GOVERNANCE STOCKS
                  The Brazilian Quality Seal for Companies

NOVO MERCADO
 Created in 2000 as a special listing segment for companies which
  voluntaily provide more rights for their shareholders
     Only shares with full voting rightsSolamente acciones con derecho de voto

 Higher Transparancy
     Annual financial statements in IFRS or US GAAP
     Improved Quarterly Reports (ITRs), including an English version, consolidated
      financial statements and cash flow statements
     Related party transactions
     Trading and ownership of the company´s shares by the management and the
      controlling shareholders

 Better Practices of Corporate Governance
    Delisting: tender offer at a price based, at least, on the economic value
    Board of directors: a minimum of 5 members, maximum two years terms
    25% minimum free-float and adoption of special procedures in public offerings
      to enhance the dispersion of the company´s shares
    Adhesion to an arbitration panel (dispute resolution)
    Directed for New Companies

LEVEL 1 and LEVEL 2
      Rules for companies gradually adhere to Novo Mercado



                                                                                      15
                  Special Listing Segments Evolution



 37.2% of total listed companies
 61.6% of total market capitalization
 72.3% of total traded value
                                                                           164




                                                                    92      102


                                                           44
                                      7             18              20      18
                            2                       10     14
            2                    3          7
                   3                                                44      44
                            31        33            37     36
    19      24

   2001    2002         2003         2004           2005   2006    2007   August 2008
                  Level 1                 Level 2          Novo Mercado




                                                                                        16
                      THE ROLE AS CAPITAL RAISING CENTER
                                FOR COMPANIES


                                       Strong Participation of
                                   International Investors in IPOs


ALMOST ALL COMPANIES           HYPE                                85%
 JOINED NOVO MERCADO            TEMP                                84%

                                MPXE                         71%

LISTING ONLY IN BRAZIL         BMEF                              77%

     Strong participation      BPNM                        67%
      of foreign investors in   MILK                     64%
      offering purchase in
                                HBOR                  56%
      Brazil
                                AMIL                              80%

                                BBRK                                      98%

                                BOVH                              78%




Source: BM&FBOVESPA


                                                                            17
                          AMONG THE TOP CAPITAL RAISING
                             CENTERS OF THE WORLD


        5th Market in IPO Capital Raising Activity in 2007




    Total Capital Raised by
    Brazilian Companies:
    In 2007: US$ 42.8 billion
    In 2006: US$ 16.5 billion
    In 2005: US$ 10.9 billion
    In 2004: US$ 3.8 billion




Source: BOVESPA                      Source: WFE – World Federation of Exchanges
                                                                                   18
                                           OPTIONS MARKET
                                      Leadership on Equity Options

                                  Options on Equities
                                           June 2008

                                                                         Notional – US$
                  #             Exchange                # of contracts
                                                                             million

                  1    Eurex*                               689              n.a.

                  2    CBOE                                 293              n.a.

                  3    Philadelphia                         256              117

                  4    BOVESPA                              153              545

                  5    AMEX                                 101               26


                  * Including International Securities Exchange




Source: BOVESPA and WFE – World Federation of Exchanges
                                                                                          19
                                 AN ECONOMICALLY IMPORTANT MARKET
                                          Listed Companies
                                                            Broad Range of Sectors
                      Market Cap In
                       USD billion                                             Information
                                                                                                Oil, Gas
                                                                               Technology
                                                                                                  Bio
July/08                1365                                      Financial        0,3%
                                                                                                17,8%
                                                                  23,2%
                                                                                                             Basic
  2007                 1399                                                                                Materials
                                            GDP ratio                                                       23,2%
                          2007               97%           Public
  2006          723                                       Utilities
                                                           9,6%

  2005     482            2006         65%                                                               Capital
                                                                                                       Goods and
                                                        Telecommu                                       Services
                          2005        52%                nications             Consumer                  1,8%
  2004    341                                                      Consumer              Constructio
                                                           6,7%                  Non
                                                                    Cyclical                n and
                                                                                Cyclical
                                                                     3,0%                Transportat
  2003    234
                          2004     45%                                          10,1%
                                                                                             ion
                                                                                            4,2%

  2002
                          2003    38%
           124


                          2002   30%                                                    Source: BM&F BOVESPA



                                          World 11th Largest Stock Exchange in
                                         terms of Market Capitalization of Listed
                                                       Companies
                                                                                                               20
        INVESTORS PRESENCE IN OUR MAKETS


  Investors' Participation in August 2008



Enlargement of Investor’s Base Stock Market



                                       Others
              Financial Institutions   0,1%
                      9,8%


  Companies
    2,5%                                  Retail Investors
                                              24,3%

                Foreign Investors
                     34,7%                      Mutual Funds
                                                   28,7%




                                                               21
                                   TRADING INFRASTRUCTURE
                                   State-of-the-art technology

•More than 1200 terminals connected to Megabolsa
•Our execution speed is in average fractions of a second
•The system is ready to process over 770,000 trades and 7 million orders
per day




                                                              214,2
Thousands of trades

                                                     153,0


                                              87,4

                                       62,2
                                53,8
                         39,5
   22,4    26,8   28,2                                                  Daily Average Number of
                                                                        Trades    Registred  at
                                                                        Megabolsa
   2000   2001    2002   2003   2004   2005   2006   2007    Aug 2008




Source: BOVESPA
                                                                                                  22
             Hybrid Clearing Model: Collateralization
                      and Settlement Fund


                        Special Net Worth
CBLC Model
                           Settlement Fund


                              Collateralization



                                 Participants Requirements




               Hybrid model: Collateralization
                    and Settlement Fund
                                                        23
                     SECURITIES LENDING PROGRAM


 Provides Automatic Securities Lending for Cash
  Market
 Allow the possibility of arbitrage transactions
  between securities and markets
 Registration of offers by Lenders and Borrowers
  Offers registered through the intermediation of
  Clearing Agents and Brokers
 Closing of lending/borrowing offers
 Anonymous order driven
 BTC contracting types
    borrower may delivery prior to the maturity
    lender may call back prior to the maturity (borrower
     has four days to deliver the securities)
    pre-fixed term




                                                            24
        Operational Indicators
Securities Lending and Investors Accounts

  Securities Lending – Open Interest
                (R$ billions)

 25%    23.5                    23.5      -40%

                                            14,1
18.8




 2Q07    2Q08                   Aug 07     Aug 08


Number of Investor Accounts            (thousands)

        540.0                              552.0
99%                              83%


271.3                           300.9




 2Q07    2Q08                   Aug 07     Aug 08

                                                     25
     BM&F’ Markets:
Futures, Commodities, FX
 and Government Bonds
         Markets



                           26
                                    BM&F Product Grid


       FINANCIAL                              OTC                 COMMODITY
      DERIVATIVES                         DERIVATIVES             DERIVATIVES

     FUTURES & OPTIONS                           SWAPS         FUTURES & OPTIONS
 STOCK INDEX                         INTEREST RATE         ARABICA COFFEE
 INTEREST RATE                       EXCHANGE RATE         CONILLON COFFEE
 EXCHANGE RATE                       PRICE INDEX           SUGAR
 DOLLAR DENOMINATED                  STOCK INDEX           ETHANOL
  DOMESTIC YIELD CURVE
                                      GOLD                  COTTON
 INTEREST RATE X PRICE INDEX
                                                             CORN
 (PPI/CPI) SPREAD
                                                             SOYBEAN
 PRICE INDEX (PPI/CPI)
                                         FLEXIBLE OPTIONS    LIVE CATTLE
 SOVEREIGN DEBT BOND
                                                             FEEDER CATTLE
       GLOBAL BOND / Fut. On CDS    • STOCK INDEX
       A BOND
                                     • EXCHANGE RATE
       US TREASURY
                                     • INTEREST RATE
      CREDIT DERIVATIVES SWAPS
                                                                         SPOT
  STRUCTURED PRODUCTS                                                   MARKET
 SPREAD STRATEGIES
 VOLATILITY TRADING
                                               METALS
                                                             GOLD
       STOCK INDEX
                                                             U.S. DOLLAR EXCHANGE RATE
       INTEREST RATE
                                                             FEDERAL GOVERNMENT BONDS
       EXCHANGE RATE
 FORWARD RATE AGREEMENTS


                                                                                          27
                                         BM&F at Glance

                Key Highlights                                         Consistent Trading Volume Growth (ADTV)*

                                                                  1,800                                                     1,740 1,697
                                                                  1,600

4th largest futures exchange in the   world(1)                   1,400




                                                  Million contracts
                                                                  1,200                                              1,153
                                                                  1,000
                                                                                                               801
                                                                                                        737
Largest derivatives exchange in Latin                                 800

 America and only futures exchange in Brazil                           600
                                                                                       425       483
                                                                       400     334 398
                                                                       200

                                                                        0
                                                                            2000 2001 2002 2003 2004 2005 2006               2007    2008
More than US$1.2 trillion in open interest(2)                        *On April 17, 2006, the size of the contracts based           Jan-Aug
                                                                         on the Ibovespa stock index was divided by 3.

                                                                               Consistent Open Interest Growth
High growth trajectory
                                                                      22,500
                                                                                                           20,285 20,688 19,217
                                                                      18,750


Vertically integrated business model                                                            14,268
                                                  Million contracts


                                                                      15,000


                                                                      11,250           10,924
                                                                               9,069
                                                                       7,500
Multi-asset class exchange
                                                                       3,750


                                                                         0
                                                                                2004      2005     2006       2007     1Q08     Aug-08
                                                                                                                                          28
                                                            ADTV of Major Contracts


                                    Interest Rates in BRL                                          FX Rates                 564
                          1,400                                                 600                                  571
                                          1,192                                                             527
                          1,200                                                              480     498
                                                   1,030                        500
                                   938                                   954
                          1,000                                   931                 387
                                                                                400
                                                            780
                           800
                                                                                300
Thousands of Contracts




                           600
                                                                                200
                           400

                           200                                                  100

                             0                                                   0
                                  1Q07    2Q07    3Q07     4Q07   1Q08   2Q08         1Q07   2Q07    3Q07    4Q07    1Q08   2Q08


                                         Interest Rates in USD                  140                 Indices
                           120
                                                                                             120
                                           103                                  120                  114     110
                           100                      90              93    91          104
                                                                                100                                  92     88
                                   78                       80
                            80
                                                                                80
                            60
                                                                                60

                            40                                                  40

                            20                                                  20

                             0                                                   0
                                  1Q07    2Q07     3Q07    4Q07   1Q08   2Q08         1Q07   2Q07   3Q07    4Q07    1Q08    2Q08


                         ADTV – Avg. Daily Traded Volume                                                                           29
                      Breakdown of Market Participants




                              Private Individuals
                                     7.1%         Others
           Foreign Investor                       3.0%
                18.6%
                                                           Financial Institutions
                                                                 50.2%




          Institutional Investor
                 21.2%

Jun. 08
Traded Contracts
                                                                                    30
                           Derivatives Product Breakdown


                                      Commodities
                        Web Trading      0.8%
                          2.3%
                                                    OTC
       Interest Rate USD
                                                    0.8%
             5.3%



          Stock Index
             5.3%




                                                           Interest rate BRL
                                                                53.0%

          FX Rate
          32.5%




Jun. 08
Traded Contracts
                                                                               31
                  Breakdown of Traded Contracts by
                        Trading Venue


    94.3
                 81.6
                           75.9
                                        70.9
                                                  62.5                            75.0        76.5

                                                                    53.4
                                                            46.6
%




                                                                                       23.5
                                                     37.5                  25.0
                                           29.1
                              24.1
                   18.4
           5.7



       01         02         03          04         05         06                 07   Jan-Jun
                                                                                         08
                          Open Outcry          Electronic Trading




                                                                                                     32
                             Non-Residents Investors at BM&F




              3,000                                                                       18%

                                                                                          16%
              2,500
                                                                                          14%

              2,000                                                                       12%
US$ Billion




                                                                                          10%
              1,500
                                                                                          8%

              1,000                                                                       6%

                                                                                          4%
               500
                                                                                          2%

                 0                                                                        0%
                      2000    2001      2002     2003   2004    2005     2006      2007

                                     Financial Volume    % of Total Financial Volume of BM&F



                                                                                                33
                    Derivatives Clearinghouse Sound
                       Safeguards System



                     BM&F Equity                              USD 924 million



                    Clearing Fund                              USD 88 million



                   Special Clearing
                                                               USD 21 million
                    Member Fund

                 Agricultural Market
                                                               USD 26 million
                Trading Fund (FOMA)



  Clearing Member                          Clearing Member
Proprietary Collateral
                                                   USD 47 million      Guarantee Fund
  Brokerage House                          Brokerage House
Proprietary Collateral


Customer Collateral       USD 45 billion      Customer
                                                                                        34
                     Efficient and Modern Risk Management



                    Derivatives Clearinghouse Risk Management


                                                             Operational
 Market Risk           Credit Risk       Liquidity Risk                         Legal Risk
                                                                Risk

                                           Central Bank
  Intraday risk        Credit analysis   discount window       Business           Brazilian
   calculation                            and 5 banking      recovery plan     Payment System
                                           repo facilities



                       Concentration           Price
 Portfolio stress                                             Contingency
                          limits             variation                           Law 10214
     testing                                                    hot site
                                              limits


Economic outlook
                         Additional      Achievement of       Independent
  analysis and                                                                     Finality
                        margin calls       Lamfalussy         internal and
 Extreme Value                                                                   and netting
                                          Plus Criteria      external audits
 Theory Models



   Collateral            Collateral          Collateral        ISO 9001          Insolvency
  market risk            credit risk       liquidity risk     compliance         protection




                                                                                                35
                      Broad and facilitated access to markets


 Electronification
 Connectivity
 Direct Market Access
 Association with international ISVs and DMA providers
 Agreement with a Global Player




                                                                36
                      BM&FBOVESPA CME order routing
                              agreement



                           US                       BRAZIL

Buy order for an      ID
futures contracts

                           CME GROUP              BM&FBOVESPA
                           GLOBEX                 GTS



      GLOBEX                                                     GTS
      communication                                              communication
      network                                                    network
                                  High speed and
                                  high       capacity
                                  international link

                                                  MATCHING


                                                             Sell order for     an   ID
                                                             futures contract


                                               SETTLEMENT IN BRL THROUGH
                                               BM&FBOVESPA     DERIVATIVES
                                               CLEARING, WHICH MAY BE
                                               FACILITATED BY BM&FBOVESPA
                                               BANK


                                                                                          37
                               Algorithmic trading




 Although high frequency traders represent a large share of trading
  volume in exchanges such as CME, ICE and LIFFE, currently they do
  not trade at BM&F derivatives market (no DMA).

 Big profit opportunities for algo-traders:

    BM&F derivatives are liquid and volatile. However, there are no
     algo-traders scanning the order books of the electronic trading
     system.

    Deterministic  and statistical arbitrage   opportunities   must   be
     bigger than in more mature markets.

    Profit opportunity hidden from human eyes

 Impact on trading volume expected to be huge.




                                                                            38
                   Derivatives x Gov. Securities


               Participant´s Needs


Foreign Investor                    Invest in long-term
                                   fixed-rate derivatives


  Foreign Funds
                                 Intermediates Flow/BM&F
(Resolution 2689)




                                    Invest in long term
Real Money Funds
                                   government securities



                                     Issue long-term
National Treasury
                                   fixed-rate securities



                                                            39
             Derivatives x Gov. Securities


Benefits resulting from the rise in trading volume


              Enhanced Liquidity

           Improved price formation

            Extension of derivatives
                   maturities
                (interest rates)


             Extension of federal
           domestic debt maturities



                                                     40
              Foreign investors are important “risk takers”




Diversified investment portfolio
      (global operations)




                     Greater “appetite for risk”




                                         Better conditions for
                                    hedging and for domestic credit



                                                                      41
                                                   Derivatives x Gov. Securities


Enhanced liquidity and improved price formation
  Fixing the same maturity dates for both the federal government bonds and the
 futures contracts has not only enhanced the liquidity of government bonds and
 derivatives, but also facilitated the execution of hedge transactions.


                                                                   Public Debt x DI


                           700

                           600
   Stock, in BRL/billion




                           500

                           400

                           300

                           200

                           100

                             -




                                                                                                                     Jun/07
                                                                    Dec/02




                                                                                Dec/03




                                                                                         Dec/04




                                                                                                   Dec/05




                                                                                                            Dec/06
                                 Dec/99




                                          Dec/00




                                                   dec/01




                                                            Fixed-rate Public Debt                ID
                                                                                                                              42
Extension of maturities for the derivatives transactions
 In 2003, the National Treasury determined that all LTNs must be issued with the
 same maturity dates as those for the DI futures contracts (1st business day of
 each quarter).

                                                                   Extension of Public Debt Maturities

                                   18

                                   16

                                   14
                                                                   Treasury altered
                                                                   the maturity dates
     Average maturity, in months




                                   12                              for LTNs
                                   10

                                    8

                                    6

                                    4

                                    2

                                    -




                                                                                                                                Jun/07
                                                                                                                       Dec/06
                                        Dec/99




                                                 Dec/00




                                                          Dec/01




                                                                          Dec/02




                                                                                       Dec/03




                                                                                                Dec/04




                                                                                                              Dec/05




                                                                    Fixed-rate Public Debt               ID
                                                                                                                                         43
           The market share and stock of foreign investors in fixed
                           rate bonds is growing

                                                     Market share of Foreign Investors in the Public Debt

                       40                                                                                                                                                       3,0%


                       35
                                                                                                                                                                                2,5%




                                                                                                                                                                                       Market share in the stock (%)
                       30
Volume (BRL billion)




                                                                                                                                                                                2,0%
                       25


                       20                                                                                                                                                       1,5%


                       15
                                                                                                                                                                                1,0%

                       10

                                                                                                                                                                                0,5%
                        5


                       -                                                                                                                                                        0,0%




                                                                                                                                                                   Abr/07
                                                                                                                                                        Jan/07
                                     Abr/04




                                                                                 Abr/05




                                                                                                                        Abr/06
                                                            Out/04




                                                                                                   Out/05




                                                                                                                                             Out/06
                                                 Jul/04




                                                                                          Jul/05




                                                                                                                                   Jul/06
                            Jan/04




                                                                      Jan/05




                                                                                                            Jan/06




                                              Foreign Investor Participation (BRL)                              Foreign Investor market share in the stock of public debt (%)                                          44
                International Investors Flow - Derivatives

          Pay Fixed Rated             Receive Fixed rate
          SWAP PRE X DI               SWAP PRE X DI

                 Foreign              Hedge Fund
                  Bank             Proprietary Trading




OUTSIDE
BRAZIL



INSIDE
BRAZIL


            2689 - Foreign
                Bank

             Recieve Fixed Rate
                                             Pay Fixed
             DI FUTURES
                                             Rate



                                  LOCAL BANK                         National Treasury

                                                         Buy Fixed
                                                         Bond        ISSUE Fixed Bond
                                                                                         45
                International Investors Flow - Derivatives

          Pay Fixed Rated                         Receive Fixed rate
          SWAP PRE X DI                           SWAP PRE X DI

                 Foreign                          Hedge Fund
                  Bank                         Proprietary Trading




OUTSIDE
BRAZIL


INSIDE
BRAZIL


            2689 - Foreign
                Bank

             Recieve Fixed Rate
                                                         Pay Fixed
             DI FUTURES                                  Rate



            LOCAL MUTUAL                      LOCAL BANK                         National Treasury
                FUND
                                                                     Buy Fixed
                                  Buy Float
                                                                     Bond        ISSUE Fixed Bond
                                  Bond
                                                                                                     46
                   INTEREST RATE FUTURES MARKET
                   POSITION AS OF OCTOBER 1, 2008

                                       Buy                      Sell
                               Contracts         %     Contracts          %
Financial companies               1,799,671    34.52    3,256,196       62.46
Institutional investors           1,659,836    31.84    1,516,024       29.08
Non resident Investors            1,713,587    32.87      411,704        7.90
Nonfinancial companies               35,254    0.68        28,865        0.55
Individuals                           4,516    0.09            75        0.00
Total                             5,212,864   100.00    5,212,864      100.00




                                                                                47
                                                                            Interest Rate Future Contract
                                                                               Non Resident Investors
                         2,500                                                                                                                                                                   2,500



                         2,000                                                                                                                                                                   2,000



                         1,500                                                                                                                                                                   1,500
Thousands of Contracts




                         1,000                                                                                                                                                                   1,000



                           500                                                                                                                                                                   500



                             -                                                                                                                                                                   -



                          (500)                                                                                                                                                                  (500)



                         (1,000)                                                                                                                                                                 (1,000)



                         (1,500)                                                                                                                                                                 (1,500)
                                   jan-06   mar-06   mai-06   jul-06   set-06   nov-06   jan-07     mar-07   mai-07    jul-07     set-07   nov-07   jan-08   mar-08   mai-08   jul-08   set-08



                                                                                                  BOUGHT        SOLD            NET




                                                                                                                                                                                                           48
                               Investment Funds Industry
                     Composition of Net Worth (Set/08 BRL1,190.17)

                              Real Estate
                                0.02%

                                 FIDC        Other   Short term
                                  4%        3.85%      3.42%


                          Pension                                 ID referenced
                          8.62%                                      15.40%
                 Stocks
                13.27%

                                                                         Fixed income
                           Multi-markets                                    30.01%
                             21.79%
External
  Debt
 0.04%


Foreign Exchange
     0.05%




Source: Andib


                                                                                        49
                Sisbex – Electronic Trading System



The Sisbex electronic system is a set of applications that permit
the trading and registration of transactions with federal
government bonds.

These bonds may be traded in accordance with the following
transaction types:

 Buy/Sell Cash Transactions;
 Buy/Sell Forward Transactions;
 Repos.

The Sisbex has special tools for managing and controlling the
risk of the participant institutions’ trading desks, as well as for
providing support to trade settlement procedures.


                                                                      50
END OF PRESENTATION




                      51

				
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