January - September 2008 · 2008. 10. 31. · 92.15 5059 145.51 9M/06 9M/07 9M/08 Key ratios...

January - September 2008

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.

Summary

Profits

Mill.

€

Profit evolution

BME: Profit attributable to Group(Quarterly series)

30.17

47.62

42.37

3Q06 3Q07 3Q08

150.59 145 51

Mill.

€

Profit evolution

BME: Profit attributable to Group(Cumulative basis)

92.15

50 59 145.51

9M/06 9M/07 9M/08

Key ratios

Business drivers

BME efficiency ratio (Cumulative basis)

Consolidated efficiency ratio evolution

33.8%

24.9%27.9%

9M06 9M07 9M08

% E

ffici

ency

% R

OE

Consolidated ROE ratio evolution

BME: Return on Equity(Cumulative basis)

26.9%

42.0%38.7%

9M06 9M07 9M08

%

26.1527.68

Number of trades (Mill. trades)

Equity Business unitActivity Overview

16.55

9M06 9M07 9M08

Mill

. Tra

des

996

1,206

1,307

n €)

Securities under custody

C&S Business unit Activity Overview

996

9M06 9M07 9M08

Nom

inal

val

ue (b

illio

( Th

.)

160168

Market Data & Information Activity Overview

Subscribers to primary data sources

9M06 9M07 9M08

Subs

crbe

rs (

131

cts

(Th.

) Stock Opt Stock Fut Opt IBEX 35® Fut Mini IBEX 35® Fut IBEX 35®

61 549

Derivatives contracts traded

Derivatives Business unit Activity Overview

9M06 9M07 9M08

Num

ber

of c

ontr

ac

34,388 34,471

61,549

� Bolsas y Mercados Españoles - Business performance - Interim Report (January - September 2008)

Bolsas y Mercados Españoles ended 9M08 with a net profit of 145.5 million euros, equivalent to 1.74 euros per share. These are solid earnings obtained in challenging circumstances on the financial markets, although �.4% lower than in September 2007.

The profit achieved is the result of the strategic positioning of the group based on an integrated business model diversified into seven business units, that has enabled the company to offset the impact of the current economic environment on trading volumes, with a tight credit market and a sharp fall in share prices across the board. In addition to this, a balanced cost management is a decisive contribution to the achievement of the results, with the efficiency ratio kept below �0% (an international benchmark).

Operating Income 81,971 90,615 -9.5% 264,707 281,781 -6.1%

Ordinary revenue on the provision of services 81,456 89,945 -9.4% 261,964 278,440 -5.9%

Other operating income �06 466 -�4.�% 1,802 2,7�6 -�4.1%

Capitalisation of development expenses 209 204 2.5% 941 605 55.5%

Operating Expenses (24,444) (24,124) 1.�% (7�,895) (70,149) 5.�%

Staff costs (14,711) (1�,999) 5.1% (44,098) (41,11�) 7.�%

Operating and external expenses (9,552) (9,665) -1.2% (29,2�1) (28,�46) �.1%

Taxes and levies (181) (460) -60.7% (566) (690) -18.0%

Income before interest, taxes, net impairment losses

and depreciation 57,527 66,491 -1�.5% 190,812 211,6�2 -9.8%

Depreciation and amortization charges (1,9�1) (1,790) 7.9% (5,888) (5,270) 11.7%

Net impairment losses (Fixed assets) 0 0 - (�) 0 -

Income before interest and taxes 55,596 64,701 -14.1% 184,921 206,�62 -10.4%

Net financial income 4,626 4,784 -�.�% 21,578 1�,�52 61.6%

Income before taxes 60,222 69,485 -1�.�% 206,499 219,714 -6.0%

Corporate income tax (17,850) (21,870) -18.4% (60,994) (69,122) -11.8%

Profit attributable to the Group 42,�72 47,615 -11.0% 145,505 150,592 -�.4%

50.54

55.44Mill.

€

Profit evolution

BME: Profit attributable to Group(Quarterly series)

47.62 47.70

42.37

3Q07 4Q07 1Q08 2Q08 3Q08

BOLSAS Y MERCADOS ESPAÑOLES, SOCIEDAD HOLDING DE MERCADOS Y SISTEMAS FINANCIEROS, S.A. AND SUBSIDIARIES COMPRISING THE BOLSAS Y MERCADOS ESPAÑOLES GROUPCONSOLIDATED PROFIT AND LOSS ACCOUNTS (UNAUDITED)

�Q08 �Q07 ∆ 9M08 9M07 ∆

(Th.Eur.) (Th.Eur.) % (Th.Eur.) (Th.Eur.) %

150.59 145 51

Mill.

€

Profit evolution

BME: Profit attributable to Group(Cumulative basis)

92.15

50 59 145.51

9M/06 9M/07 9M/08

Note: As explained in the half-year financial statements, with the aim of adapting the consolidated income statement to the model established in the CNMV Circular 1/2008, firm credit losses and impairment of doubtful trade receivables and their recoverable amount, will be entered under the “External and operating expenses” heading. Previously they were recognised in “Net impairment losses” in the consolidated income statement. The amount corresponding to this item, i.e. the effect of the change in criteria for “External and operating costs” in the quarter and 9M07, totalled �8� thousand euros and 525 thousand euros, respectively.

4 Bolsas y Mercados Españoles - Business performance - Interim Report (January - September 2008)

Financial Statements

% R

OE

)

2007 2008

Consolidated ROE ratio evolution

BME: Return on Equity(Quarterly and cumulative basis)

37.7%42.0%

34.8%38.7%

3Q07 - 3Q08 9M07 - 9M08

(%

Effi

cien

cy)

2007 2008


BME efficiency ratio (Quarterly and cumulative basis)

26.6% 24.9%

29.8%27.9%

3Q07 - 3Q08 9M07 - 9M08

(% E

Earnings per share 0.51 0.57 -11.0% 1.74 1.80 -�.4%

Efficiency ratio (%) 29.8% 26.6% 27.9% 24.9%

ROE (%) �4.8% �7.7% �8.7% 42.0%

Bolsas y Mercados Españoles Group(Key Ratios)

�Q08 �Q07 ∆ 9M08 9M07 ∆

BME reported a third-quarter net profit of 42.4 million euros, down 11.0% vs. �Q07, which amounts to 0.51 euros per share. The drive to rein in costs continued, with the increase in costs compared with �Q07 restricted to 1.�% and 5.�% to 7�.9 million euros in the first nine months.

The company maintained one of the sector’s best efficiency levels, achieving a ratio of 29.8% in the quarter and 27.9% in 9M08. Moreover, average returns on equity of �4.8% in the quarter and �8.7% in the first nine months are significantly better than the sector average. Particularly noteworthy in the current economic situation is the company’s strong position in terms of liquidity and solvency.

The request submitted to the Spanish tax authorities for a refund of 15.2 million euros, reported in 2Q08, is still being processed. In the event of a positive outcome, this amount will be recorded in the Income Statement when the Group confirms the above-mentioned increase in equity and corresponding economic benefits.

Note: Figures obtained from intermediate consolidated financial statements, audited.

Bolsas y Mercados Españoles - Business performance - Interim Report (January - September 2008) 5


In order to apply the same presentation criteria as other European central counterparties, the Group has increased the balances of “Current assets – Non-Group current financial assets” and “Current liabilities – Non-Group current financial liabilities”, by the same amounts, mainly for 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 MERCADOS ESPAÑOLES GROUP

as of �0/09/2008

as of�0/09/2007

∆

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

NON-CURRENT ASSETS 156,501 147,111 6.4%Goodwill 80,619 80,619 0.0%Other intangible assets 9,009 9,124 -1.�%Property, plant and equipment 56,599 54,62� �.6%Non-current financial assets 7,452 1,�28 461.1%Deferred taxes 2,822 1,417 99.2% CURRENT ASSETS 4,650,574 4,4�8,700 4.8%Non-Group current financial assets 4,150,718 �,947,105 5.2%Other current financial assets Trade and other receivables 77,752 24,9�7 211.8% Cash and cash equivalents 406,91� 446,677 -8.9%Tax assets 1�,199 18,016 -26.7%Other current assets 1,992 1,965 1.4% TOTAL ASSETS 4,807,075 4,585,811 4.8% SHAREHOLDERS´ EQUITY 502,747 528,�6� -4.8%Share capital 270,078 270,078 0.0%Reserves 96,�21 107,69� -10.6%Profit attributable to the Group 145,505 150,592 -�.4%(Treasury shares) (7,661) 0 -Other equity instruments 482 0 -Valuation reserves (1,978) 0 - NON-CURRENT LIABILITIES 7,882 9,207 -14.4%Provisions �,124 5,1�� -�9.1%Provisions for employee benefits �,�25 2,091 59.0%Deferred taxes 1,422 1,972 -27.9%Other non-current financial liabilities 11 11 0.0% CURRENT LIABILITIES 4,296,446 4,048,241 6.1%Trade and other payables 67,469 18,021 274.4%Non-Group current financial liabilities 4,150,6�7 �,947,070 5.2%Tax liabilities 72,�60 77,480 -6.6%Other current liabilities 5,980 5,670 5.5% TOTAL EQUITY AND LIABILITIES 4,807,075 4,585,811 4.8%



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

9M08 9M07 ∆

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

Consolidated profit for the year before taxes 206,499 219,714 -6.0%

Corporate income tax (60,994) (69,122) -11.8%

Amortization and provisions 6,0�8 5,855 �.1%

Other adjustments to the result (6,951) (1,171) 49�.6%

Changes in working capital-

- Current financial assets (non Group) (80) 46 -27�.9%

- Trade and other receivables (16,16�) (5,500) 19�.9%

- Tax assets 47,�49 29,651 59.7%

- Tax liabilities (�1,605) 6,559 -581.9%

- Other current assets (81�) (568) 4�.1%

- Trade and other payables 12,952 1,941 567.�%

- Other current liabilities 5,8�2 5,509 5.9%

Changes in non current assets and liabilities (1,722) (1,244) �8.4%

Net cash flows from operating activities 160,�42 191,670 -16.�%

Net cash flows from investing activities (8,447) (2,871) 194.2%

Net cash flows from financing activities (220,168) (99,994) 120.2%

Net increase (decrease) in cash and cash equivalents (68,27�) 88,805 -176.9%

Cash and cash equivalents at the beginning of period 475,186 �57,872 �2.8%

Cash and cash equivalents at the end of period 406,91� 446,677 -8.9%

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.



The number of cross trades, including securities, EFTs and warrants, increased by 5.9% year on year in the first nine months of 2008 to 27.7 million. A total of 9.0 million trades were registered in �Q08, up �.2% on the same period a year earlier.

Total cash traded in the quarter amounted to 288.�9 billion euros, 22.8% lower than in �Q07. In 9M08 the volume was down 19.8% from the same period in 2007.

The volume of securities traded in the third quarter increa-sed by 0.9% from �Q07, while 1.5% less were traded through September than in 9M07.

On 2� July a public offering of participating shares of Caja de Ahorros del Mediterráneo was admitted to listing. This is the first issue of this product in our market. The amount

■

■

placed was 292 million euros and the issue was subscribed by more than �7,000 investors.

On 14 October 14 million Banco Santander shares were admitted to listing in order to perform the share swap with the mortgage lender Alliance and Leicester.

On �0 September BBVA Gestión’s ETF the “Acción FTSE-4Good IBEX® index”, based on an index of socially responsi-ble Spanish companies, was admitted to listing.

The number of warrants listed for trading in the first nine months of the year surged 50.5% yoy to 7,229.

At the beginning of October, as part of an array of measures proposed to alleviate the crisis, the Government approved the creation of a Fund to Acquire Financial Assets, amounting to

Highlights

Bolsas y Mercados Españoles(Quaterly Overview)

�Q08 �Q07 ∆ 9M08 9M07 ∆

Equity Information

Turnover (Mill. Eur.) 288,�86 �7�,568 -22.8% 992,166 1,2�6,�56 -19.8%

Number of trades 8,96�,158 8,681,882 �.2% 27,680,705 26,150,212 5.9%

Number of shares (Million) 28,0�6 27,799 0.9% 88,291 89,656 -1.5%

Market Capitalisation (Mill. Eur.) 1,016,257 1,�51,196 -24.8%

Average amount per trade (Euros) �5,84� 47,279 -24.2%

Clearing & Settlement

Operations settled 8,845,1�6 10,241,62� -1�.6% 29,255,250 �1,861,��7 -8.2%

Turnover settled (billion euros daily avg.) 289.4 �66.9 -21.1%

Nominal amount registered (billion euros) 1,�07.1 1,205.9 8.4%

Listing

New shares nominal listed (Mill. Euros) 100 14 614.�% 145 �22 -55.0%

AIAF Fixed Income volume admitted (nominal Mill. Euros) 102,8�0 172,67� -40.4% �56,086 495,450 -28.1%

Derivatives

Futures (number of contracts)

Index Futures 2,781,�80 2,991,167 -7.0% 8,044,510 8,61�,725 -6.6%

Stock Futures 11,98�,940 5,105,�85 1�4.7% �5,�00,96� 12,657,047 178.9%

Options (number of contracts)

Index Options 2,�75,699 1,�41,626 77.1% 6,247,4�2 �,980,485 57.0%

Stock Options �,804,61� �,0�6,001 25.�% 11,956,�98 9,219,478 29.7%

Open interest (number of contracts) 9,75�,908 7,629,�85 27.8%

Fixed Income

Turnover (Mill. Eur.) 622,978 �20,2�2 94.5% 1,618,82� 956,2�5 69.�%


Quarter Overview

�0,000 million euros, which can be increased to 50,000 mil-lion complemented with the creation of a guarantee of up to of 100,000 million euros to back promissory note, bond and debenture issues.

The outstanding balance of Private Fixed Income at �0 Sep-tember was 812.68 billion euros, a year on year increase of 11.4%, while the total volume of new issues admitted to listing in the Spanish private fixed income market (AIAF) fell 28.1% to �56.09 billion euros. Admissions fell 40.4% in the third quarter from the same period in 2007.

Link Up Markets has chosen SWIFT as its connectivity provider. The technological solution will be based on SWIFT’s InterAct interactive messenger service. Four Central Securities Depositories (CSDs) have already agreed to perform connec-tivity tests on Link Up Markets via SWIFT in the first half of 2009: IBERCLEAR (Spain), Oesterreichische Kontrollbank AG (Austria), SIX SIS Ltd – previously SIS SegaInterSettle AG - (Switzerland) and VP Securities Services (Denmark).

■


Quarter Overview

104,079

88,230(Th.

Eur

os)

2007 2008Key Investment Highlights Key Financial Business units overview

EBITDA evolution by Business unit (9M08)

57,889

14,58419,189

13,524

2,236 4,379

51,191

12,783

23,258

13,678

2,700 4,775

EQUITY CLEARING & SETTLEMENT

LISTING MARKET DATA & INFORMATION

DERIVATIVES FIXED INCOME IT & CONSULTING

Bolsas y Mercados Españoles(Business Units 9M08) (Thousands of Euros)

EquityClearing & Settlement

ListingMarket Data &

InformationDerivatives

Fixed Income

IT & Consulting

Equity �4,405 41,028 -16.1% 114,971 129,461 -11.2%

Clearing & Settlement 19,�90 21,227 -8.7% 62,509 68,4�� -8.7%

Listing 6,677 7,�02 -8.6% 20,822 22,142 -6.0%

Market Data & Information 9,��0 8,801 6.0% 28,�01 24,681 14.7%

Derivatives 7,166 7,5�8 -4.9% 21,481 21,�22 0.7%

Fixed Income 1,645 1,578 4.2% 4,977 4,688 6.2%

IT & Consulting �,428 �,�21 �.2% 11,1�1 10,07� 10.5%

Total 82,041 90,795 -9.6% 264,192 280,800 -5.9%

Corporate Unit 2,�20 2,258 2.7% 8,051 7,624 5.6%

Consolidation adjustments (2,�90) (2,4�8) -2.0% (7,5�6) (6,64�) 1�.4%

Consolidated 81,971 90,615 -9.5% 264,707 281,781 -6.1%

Equity 25,670 �2,��7 -20.6% 88,2�0 104,079 -15.2%

Clearing & Settlement 15,615 17,506 -10.8% 51,191 57,889 -11.6%

Listing 4,0�8 4,742 -14.8% 12,78� 14,584 -12.�%

Market Data & Information 7,810 7,009 11.4% 2�,258 19,189 21.2%

Derivatives 4,565 4,75� -4.0% 1�,678 1�,524 1.1%

Fixed Income 887 800 10.9% 2,700 2,2�6 20.8%

IT & Consulting 1,�92 1,274 9.�% 4,775 4,�79 9.0%

Total 59,977 68,421 -12.�% 196,615 215,880 -8.9%

Corporate unit (2,450) (1,9�0) 26.9% (5,80�) (4,248) �6.6%

Consolidation adjustments 0 0 0 0

Consolidated 57,527 66,491 -1�.5% 190,812 211,6�2 -9.8%

Revenues 114,971 62,509 20,822 28,�01 21,481 4,977 11,1�1

Operating Costs (26,741) (11,�18) (8,0�9) (5,04�) (7,80�) (2,277) (6,�56)

EBITDA 88,2�0 51,191 12,78� 2�,258 1�,678 2,700 4,775

Bolsas y Mercados Españoles Revenues

Business Units Revenues (Thousands of Euros) �Q08 �Q07 ∆ 9M08 9M07 ∆

Bolsas y Mercados Españoles EBITDA

Business Units EBITDA (Thousands of Euros) �Q08 �Q07 ∆ 9M08 9M07 ∆


Business Units Quarter Overview

The number of cross trades, including securities, EFTs and war-rants, increased by 5.9% year on year in the first nine months to 27.7 million. A total of 9.0 million trades were registered in �Q08, up �.2% on the same period in 2007.

Share trading accounted for 98.4% of the 27.2 million transac-tions in 9M07, 6.7% more than in 9M07. Share trading in the quarter rose by 4.�% yoy to 8.8 million transactions. Trading on the warrants market fell by �0.0% in the first nine months and by �7.7% yoy in �Q08.

Total cash traded in the quarter amounted to 288.�9 billion euros, 22.8% less than in �Q07. In 9M08 total cash traded was down 19.8%.

The volume of securities traded in the third quarter increased by 0.9% yoy, while a total of 88.29 billion securities were traded in the first nine months, down 1.5% year on year. Of this number,

82.25 billion were shares traded to September, up 1.9% on the same period in 2007, while share trades grew by 6.8% in the quarter.

ETF trading volume rose by 6.6% in the quarter and 10�.�% in the first nine months. The number of trades fell by 7.5% and 11.4% respectively.

Premium trading volume in the warrants segment fell 50.9% yoy in �Q08 and by 42.1% in the first nine months.

Revenue for 9M08 fell 11.2% to 114,971 thousand euros while EBITDA declined 15.2% to 88,2�0 thousand euros. Third-quar-ter revenues totalled �4,405 thousand euros (-16.1%) which, together with flat operating costs, resulted in an 20.6% drop in the unit’s EBITDA to 25,670 thousand euros.

Equity

Revenues �4,405 41,028 -16.1% 114,971 129,461 -11.2%

Operating Costs (8,7�5) (8,691) 0.5% (26,741) (25,�82) 5.4%

EBITDA 25,670 �2,��7 -20.6% 88,2�0 104,079 -15.2%

Bolsas y Mercados Españoles(Equity Business Unit Income) (Th.Eur.)

�Q08 �Q07 ∆ 9M08 9M07 ∆

Bolsas y Mercados Españoles(Equity Business Unit Activity Overview)

�Q08 �Q07 ∆ 9M08 9M07 ∆

1,236,356Eur

os)

2007 2008

Equity Turnover (Mill. Euros)


373,568288,386

992,166

3Q07 - 3Q08 9M07 - 9M08

(Mill.

26.1527.68

Tra

des)

2007 2008

Number of trades (Mill. Trades)


8.68 8.96

3Q07 - 3Q08 9M07 - 9M08

(Mill

. T

TRADING (Mill. Euros) 288,�86 �7�,568 -22.8% 992,166 1,2�6,�56 -19.8%

Equity

Turnover (Mill. Euros) 286,780 �71,286 -22.8% 984,579 1,229,792 -19.9%

Number of trades 8,821,096 8,456,2�7 4.�% 27,224,716 25,504,046 6.7%

Average amount per trade (Euros) �2,511 4�,907 -26.0% �6,165 48,219 -25.0%

Exchange Traded Funds (ETFs)

Turnover (Mill. Euros) 901 845 6.6% 5,295 2,605 10�.�%

Number of trades 4,55� 4,92� -7.5% 16,�11 18,408 -11.4%

Warrants

Turnover (Mill. Euros) 705 1,4�7 -50.9% 2,292 �,959 -42.1%

Number of Trades 1�7,509 220,722 -�7.7% 4�9,678 627,758 -�0.0%

Number of shares (Mill. Shares) 28,0�6 27,799 0.9% 88,291 89,656 -1.5%

CAPITALISATION (Mill. Euros) 1,016,257 1,�51,196 -24.8%



Nominal amounts for all three markets increased +8.4% in the first nine months of the year to 1,�07.1 billion euros.

The total number of trades settled in �Q08, including equities, private fixed income and public debt, amounted to 8.8 million, a 1�.6% drop yoy in the quarter.

The average daily cash values of equity, private fixed income and public debt stood at 289.4 billion euros at the close of the third quarter, down 21.1% vs. the same quarter in 2007. This decline is reflected in the settlement figure for the three mar-kets.

Revenue volume, both in the quarter and YTD, fell 8.7% to 19,�90 thousand euros and 62,509 thousand euros respecti-vely. Meanwhile, the unit’s EBITDA margins dropped 10.8% and 11.6% in the quarter and YTD, amounting to 15,615 thou-sand euros and 51,191 thousand euros respectively.

As we said in our 2Q07 report, the number of members reques-ting our default handling service rose in the period, which lar-

gely explains the performance of this business unit in 9M08. Stripping out these revenues, which are not related to the ordi-nary operating activity, revenues from settlement fell 10.7% in �Q08 yoy, while revenues from registration advanced 6.�%. Year to date, revenues from settlement have fallen 8.9% while registration revenues have grown 9.7%.

Link Up Markets, the company recently created by seven Euro-pean Central Securities Depositories to enhance the efficiency of cross-border post-trade activities, has selected Clearstream Services as a technology provider to develop, install and ope-rate its IT infrastructure and networks.

Link Up Markets has also chosen SWIFT as its connectivity provider. The technological solution will be based on SWIFT’s InterAct interactive messenger service. Four Central Securi-ties Depositories (CSDs) have already agreed to perform con-nectivity tests on Link Up Markets via SWIFT in the first half of 2009: IBERCLEAR (Spain), Oesterreichische Kontrollbank AG (Austria), SIX SIS Ltd – previously SIS SegaInterSettle AG - (Switzerland) and VP Securities Services (Denmark).

31,861,337

ns s

ettle

d

2007 2008

Number of transactions settled

C&S Business unit Activity Overview

10,241,6238,845,136

29,255,250

3Q07 - 3Q08 9M07 - 9M08

Ope

ratio

Clearing & Settlement

Revenues 19,�90 21,227 -8.7% 62,509 68,4�� -8.7%

Operating Costs (�,775) (�,721) 1.5% (11,�18) (10,544) 7.�%

EBITDA 15,615 17,506 -10.8% 51,191 57,889 -11.6%

Bolsas y Mercados Españoles(Clearing & Settlement Business Unit Income) (Th.Eur.)

�Q08 �Q07 ∆ 9M08 9M07 ∆

Bolsas y Mercados Españoles(Clearing & Settlement Business Unit Activity Overview )

�Q08 �Q07 ∆ 9M08 9M07 ∆

Operations settled 8,845,1�6 10,241,62� -1�.6% 29,255,250 �1,861,��7 -8.2%

Turnover settled (billion euros daily avg.) 289.4 �66.9 -21.1%

Nominal amount registered (billion euros) 1,�07.1 1,205.9 8.4%



EBITDA at the Listing business unit in 9M08 was down 12.�% yoy to 12,78� thousand euros. Revenues for the nine-month period fell 6.0% yoy 20,822 thousand euros and amounted to 6,677 thousand euros in �Q08 (-8.6%).

The market capitalisation of companies listed on the markets managed by BME stood at 1.02 trillion euros at �0 September 2008, 24.8% less than a year earlier.

On 2� July a public offering of participating shares of Caja de Ahorros del Mediterráneo was admitted to listing. This is the first issue of this product in our market. The amount placed was 292 million euros and had over �7,000 subscribers.

On 14 October 14 million Banco Santander shares were admit-ted to trading in order to carry out the bank’s share swap with the mortgage lender Alliance and Leicester.

On �0 September BBVA Gestión’s ETF Acción FTSE4Good IBEX® index, based on an index of socially responsible Spa-nish companies, was admitted to listing. On 2� September Santander Asset Management’s 4 ETFs were excluded from trading. At the end of the quarter the ETF segment had 28 funds.

There were �,�70 SICAVs admitted to trading on the Alterna-tive Equity Market (MAB) at �0th September 2008, �.7% more than the previous year.

The number of warrants listed for trading in the first nine months of the year surged 50.5% yoy to 7,229.

The total volume of new issues admitted to trading on the AIAF fixed income market in 3Q08 was €102.83 billion, a 40.4%

yoy decrease. The total trading volume reached �56.09 billion euros, 28.1% less than the year before.

At the beginning of October, as part of an array of measures proposed to alleviate the crisis, the government approved the creation of a Fund to Acquire Financial Assets, amounting to �0,000 million euros, which can be increased to 50,000 million, designated for two types of interventions.

The first is the acquisition via repurchase agreements of secu-rities backed by private and company debt (issued after 1st August 2007) in exchange for two-year high quality bonds (with a minimum rating of AA).

The second line of action will be the purchase of new mort-gage covered bond issues (AAA rated), with an initial maturity of three years.

These measures will be complemented with the creation of a guarantee of up to of 100,000 million euros to back promissory note, bond and debenture issues.

All of these measures are aimed at facilitating the issue of fixed income financial assets, reinforcing the guarantees and bols-tering weak market demand. As a result, they should have a positive impact on the Listing business unit.

Despite the decline in trading volume, the outstanding bal-ance rose 11.4% from September 2007 to 812.68 billion euros. Highest growths were registered in asset-securitised bonds and covered bonds.

Net fund raising by the private sector in 9M08 was 54.12 billion euros.

Listing

Revenues 6,677 7,�02 -8.6% 20,822 22,142 -6.0%

Operating Costs (2,6�9) (2,560) �.1% (8,0�9) (7,558) 6.4%

EBITDA 4,0�8 4,742 -14.8% 12,78� 14,584 -12.�%

Equity Market

Number of Companies listed �,641 �,491 4.�%

Market Capitalisation listed (Mill.Euros) 1,016,257 1,�51,196 -24.8%

New shares nominal listed (Mill. Euros) 100 14 614.�% 145 �22 -55.0%

Fixed Income Market

AIAF Fixed Income volume admitted (nominal Mill. Euros) 102,8�0 172,67� -40.4% �56,086 495,450 -28.1%

Public Debt Outstanding Balance (Mill. Euros) �70,789 �67,�08 0.9%

Private Fixed Income Outstanding Balance (Mill. Euros) 812,682 729,775 11.4%

Bolsas y Mercados Españoles(Listing Business Unit Income) (Th.Eur.)

�Q08 �Q07 ∆ 9M08 9M07 ∆

Bolsas y Mercados Españoles(Listing Business Unit Activity Overview)

�Q08 �Q07 ∆ 9M08 9M07 ∆

Bolsas y Mercados Españoles - Business performance - Interim Report (January - September 2008) 1�


EBITDA at the Information business unit in 9M08 was up 21.2% yoy to 2�,258 thousand euros. Revenues totalled 28,�01 thou-sand euros (+14.7%), of which 9,��0 thousand euros were generated in �Q08 (+6.0%).

Operating costs for the quarter fell 15.2% yoy, helping raise EBITDA for the period to 7,810 thousand euros (+11.4%).

Average subscriptions in 9M08 for the different levels of pri-mary information supplied rose by 5.�% from 160.0 to 168.4 thousand subscribers per month, while falling by 6.7% yoy in the third quarter.

The total number of clients with a direct connection and those with a connection via other information distributors grew by an average of 4.9% yoy in 9M08 and by 1.8% in the third quarter.

The specific client segment with a direct connection to BME information servers remained stable, rising 2.1% in 9M07 and falling �.6% in the third quarter.

The Advisory Committee of the FTSE4Good has decided to include Abengoa, Antena � Televisión, Banesto, Iberia and SOS Cuétara in the FTSE4Good IBEX. This brings to �2 the number of stocks included in this index of socially responsible companies.

Market Data & Information

Revenues 9,��0 8,801 6.0% 28,�01 24,681 14.7%

Operating Costs (1,520) (1,792) -15.2% (5,04�) (5,492) -8.2%

EBITDA 7,810 7,009 11.4% 2�,258 19,189 21.2%

Bolsas y Mercados Españoles(Information Business Unit Income) (Th.Eur.)

�Q08 �Q07 ∆ 9M08 9M07 ∆



The Derivatives unit’s revenues remained stable in 9M08, rising 0.7% to 21,481 thousand euros, while EBITDA advanced 1.1% to 1�,678 thousand euros. Third-quarter revenues totalled 7,166 thousand euros (-4.9%) which, together with an 6.6% fall in operating costs, resulted in a 4.0% drop in the unit’s EBITDA to 4,565 thousand euros.

Derivatives trading grew 78.6% in 9M08 versus the same period in 2007. Growth was more pronounced in equity deriva-tives than in index derivatives with trading in individual stocks in �Q08 extending the increase seen over the year. In equity futures, the quarterly volume of 11,98�,940 contracts is the second largest for this product, representing growth of 1�4.7% versus �Q07. To �0 September some �5,�00,96� contracts were traded, 178.9% more than in 9M07.

Equity options traded in the quarter totalled �,804,61� (+25.�%), bringing the total for the first nine months of the year to 11,956,�98 contracts (+29.7%).

In the index derivatives segment, IBEX �5® futures totalled 1,9�4,608 contracts during the quarter (-12.5%), giving a year-

to-date total of 5,6�1,557 contracts (-1�.4%). This decline was offset by the increase in Mini Futures and IBEX �5® Options, with a trading volume for the latter in the quarter of 2,�75,699 (+77.1%) and 6,247,4�2 for 9M08 (+57.0%).

The overall volume of index contracts for 9M08 was 14,291,942 (+1�.5% yoy). In notional terms, falling share prices caused a 20.4% decline in index derivatives, while in equity derivatives the higher volume amply offset the lower value of the stocks, with the notional value up by 5�.9% to �0th September.

The open position at �0th September 2008 amounted to 9.8 million derivatives contracts, 27.8% more than a year earlier with record or near highs obtained by nearly all the products.

In July, MEFF, along with IBM, was appointed manager of the Sixth and Seventh Primary Energy Emissions Auctions in a tender called by the National Energy Commission. Options to purchase a total capacity of 4,460 MW/half year will be auc-tioned. The Sixth Auction was held in September and the Sev-enth will take place in March 2009.

12,594,210

14,291,942

cts

2007 2008Derivatives Business unit Activity Overview

Index derivatives contracts traded

4,332,793

12,594,210

5,157,079

3Q07 - 3Q08 9M07 - 9M08

num

ber

of

contr

a c

Derivatives

Revenues 7,166 7,5�8 -4.9% 21,481 21,�22 0.7%

Operating Costs (2,601) (2,785) -6.6% (7,80�) (7,798) 0.1%

EBITDA 4,565 4,75� -4.0% 1�,678 1�,524 1.1%

18,203,830

ontr

act

s

Options FuturesDerivatives Business unit Activity Overview

Derivatives contracts traded

8,096,55214,765,320

21,270,772

43,345,473

4,377,627

6,180,312

13,199,963

3Q07 3Q08 9M07 9M08

num

ber

of

co

Derivatives Contracts (number of contracts) 20,945,6�2 12,474,179 67.9% 61,549,�0� �4,470,7�5 78.6%

Index Derivatives (number of contracts)

IBEX �5® Index Futures 1,9�4,608 2,211,10� -12.5% 5,6�1,557 6,50�,51� -1�.4%

Mini IBEX �5® Index Futures 846,772 780,064 8.6% 2,412,95� 2,110,212 14.�%

IBEX �5® Index Options 2,�75,699 1,�41,626 77.1% 6,247,4�2 �,980,485 57.0%

Total notional value (Mill.Euros) 258,6�0 �51,712 -26.5% 825,045 1,0�6,�0� -20.4%

Equity Derivatives (number of contracts)

Equity Futures 11,98�,940 5,105,�85 1�4.7% �5,�00,96� 12,657,047 178.9%

Equity Options �,804,61� �,0�6,001 25.�% 11,956,�98 9,219,478 29.7%

Total notional value (Mill.Euros) 20,566 15,528 �2.4% 67,4�4 4�,816 5�.9%

Open Interest (number of contracts) 9,75�,908 7,629,�85 27.8%

Number of Trades 1,�84,9�6 1,455,594 -4.9% 4,061,696 �,9�7,256 �.2%

Bolsas y Mercados Españoles(Derivatives Business Unit Income) (Th.Eur.)

�Q08 �Q07 ∆ 9M08 9M07 ∆

Bolsas y Mercados Españoles(Derivatives Business Unit Activity Overview)

�Q08 �Q07 ∆ 9M08 9M07 ∆



This business unit only includes fixed income trading.

In �Q08, trading in the fixed income business advanced 94.5% year on year to 622.98 billion euros.

The Fixed Income total turnover year-to-date figure for the unit was 1.62 trillion euros, 69.�% higher than the previous year.

Public debt trading was 20.4 billion euros, a 44.0% increase on the previous year’s figure, while treasury bills trading advanced significantly over the third quarter. The public debt trading volume through �0th September totalled 69.08 billion euros, 8.2% higher than the year before.

Trading in Other Equity Market Fixed Income, mainly Public

Debt for the autonomous regions, totalled 58.67 billion euros in 9M08, a decrease of 15.�% compared to the same figure the previous year.

Meanwhile, Private Fixed Income trading volumes totalled 581.9� billion euros (+106.�%) in �Q08. The year-to-date figure is 1.49 trillion euros, 81.2% higher than in 9M07. These increases are largely from simultaneous operations.

Due to this performance, revenue at this business unit rose 6.2% to 4,977 thousand euros in 9M08, while the quarterly figure was up 4.2% Likewise, EBITDA, after stripping out the unit’s operat-ing costs, totalled 2,700 thousand euros in 9M08 (+20.8%) and 887 thousand euros in the quarter (+10.9%).

69,07958,671

o s)

Other Equity Market Fixed Income Public Debt Private Fixed IncomeFixed IncomeActivity

Fixed Income Turnover

282,096

581,934

823,108

1,491,073

14,164

20,396

63,841

23,972

20,648

69,286

3Q07 3Q08 9M07 9M08

(Mill

. Eu

ro

Fixed Income

Revenues 1,645 1,578 4.2% 4,977 4,688 6.2%

Operating Costs (758) (778) -2.6% (2,277) (2,452) -7.1%

EBITDA 887 800 10.9% 2,700 2,2�6 20.8%

Public Debt Turnover (Mill. Euros) 20,�96 14,164 44.0% 69,079 6�,841 8.2%

Private Fixed Income Turnover (Mill. Euros) 581,9�4 282,096 106.�% 1,491,07� 82�,108 81.2%

Other Equity Market Fixed Income Turnover (Mill. Euros) 20,648 2�,972 -1�.9% 58,671 69,286 -15.�%

Fixed Income Total Turnover (Mill. Euros) 622,978 �20,2�2 94.5% 1,618,82� 956,2�5 69.�%

Bolsas y Mercados Españoles(Fixed Income Business Unit Income) (Th.Eur.)

�Q08 �Q07 ∆ 9M08 9M07 ∆

Bolsas y Mercados Españoles(Fixed Income Business Unit Activity Overview)

�Q08 �Q07 ∆ 9M08 9M07 ∆



The total number of orders handled by the Visual Trader system in �Q08 was up 49% from the same period the previous year. The largest increase was in the number of orders sent to the Spanish market by international financial entities connected to Visual Trader. In �Q08 the number of orders sent to SIBE by foreign entities increased by 15�% from the same period a year earlier.

Work continued in the third quarter to improve and update Visual Trader’s applications, with a particular focus on research and development. Particularly noteworthy is the adaptation of the systems to the new SMART-Warrants platform on SIBE and the standardisation on the new TradeElect platform of the Milan market.

The BME Consulting Technology unit is carrying out a series of adaptations to the SIBE electronic trading system of the Mon-tevideo, Dominican Republic, Caracas and El Salvador stock exchanges to ensure that they meet local needs. This work is being performed under the maintenance and adaptation agree-ments signed by BME and the exchanges.

The Consulting unit completed the project it had been working on in Russia. This involved researching international practice in relation to the promotion and regulation of financial services for retail customers. The unit is also involved in two projects in Ukraine and Colombia.

The company has worked on the design of tailored courses and training plans for several clients in Latin America which have requested this type of training. Delivery of these plans and courses will commence in the final quarter of the year.

The Business Continuity and Contingency Services unit contin-ues to consolidate and extend its range of services through its BME AlterNativ and BME BackGuard products.

Revenues from BME’s Technology and Consulting unit in �Q08 totalled �,428 thousand euros (+�.2%), which, when added to the figure for the first half, gives a year-to-date amount of 11,1�1 thousand euros (+10.5%). EBITDA for the quarter was 9.�% higher yoy and 9.0% higher in the first nine months.

IT & Consulting

Revenues �,428 �,�21 �.2% 11,1�1 10,07� 10.5%

Operating Costs (2,0�6) (2,047) -0.5% (6,�56) (5,694) 11.6%

EBITDA 1,�92 1,274 9.�% 4,775 4,�79 9.0%

Bolsas y Mercados Españoles(IT & Consulting Business Unit Income) (Th.Eur.)

�Q08 �Q07 ∆ 9M08 9M07 ∆



The efficiency ratio (operating costs as a percentage of operating revenues) rose from 26.6% in �Q07 to 29.8% in the same period this year and from 24.9% in 9M07 to 27.9%

YTD. However, efficiency levels remain below �0% both in the quarter and YTD and are significantly better than the sector average.

Effi

cien

cy)

2007 2008


BME efficiency ratio (Quarterly and cumulative basis)

26.6% 24.9%

29.8%27.9%

3Q07 - 3Q08 9M07 - 9M08

(% E

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

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

9M08 9M07

(Th.Eur.) (Th.Eur.)

SHAREHOLDER’S EQUITY CHANGES

Staff

Efficiency

Average number of staff 7�0 707 724 702

Employees as at balance sheet date 7�2 709 7�2 709

Bolsas y Mercados Españoles(Staff)(*)

�Q08 �Q07 9M08 9M07

Shareholders’ equity – opening balance 498,970 427,77� Supplementary dividend (84,994) (50,002)Extraordinary dividend (47,577) 0 Valuation reserves (1,978) 0 Treasury shares (7,661) 0 Equity instruments 482 0 Net income/loss in reporting period 145,505 150,592 Shareholders’ equity – closing balance 502,747 528,�6�


Other Relevant Information

Shares of Exchanges listed in stock markets, continued to fall in �Q08 amid increasing financial and credit market uncertainty. The share price of Bolsas y Mercados Españoles dropped from 2�.65 euros in 2Q08 to 18.0� euros at the end of September. The average share price in the first nine months was 24.�% lower than in the same period of 2007, and 12.4% lower based on prices at the end of September 2007 and 2008. All listed stock markets have suffered similar losses in percentage terms.

The average daily amount traded in the first nine months was 12.4% higher than in 9M07 and 45.6% lower in the third quarter. The daily amount traded was affected by the decline in share prices, given that trading activity measured as the volume of securities exchanged was similar to the level in �Q07.

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Share Development

Bolsas y Mercados Españoles(Share performance)

�Q08 �Q07 ∆ 9M08 9M07 ∆

BME's share performance

Higher quote 25.64 44.67 -42.6% 46.89 45.00 4.2%

Lower quote 17.61 �7.00 -52.4% 17.61 �1.10 -4�.4%

Average quote 21.�6 40.87 -47.7% 29.46 �8.94 -24.�%

Closing quote 18.0� 4�.54 -58.6%

BME's trading daily turnover (Mill. Euros)

Higher daily turnover 99.7 9�.2 7.0% 106.6 160.0 -��.4%

Lower daily turnover 5.8 6.� -7.9% 5.8 5.4 7.4%

Average daily turnover 16.7 �0.7 -45.6% 29.0 25.8 12.4%

BME's shares trading (Mill. Shares) 51.70 51.70 0.0% 190.10 128.50 47.9%

BME's number of trades 118,800 116,870 1.7% 408,46� 265,9�7 5�.6%

Other Relevant Information


January - September 2008 · 2008. 10. 31. · 92.15 5059 145.51 9M/06 9M/07 9M/08 Key ratios...

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Transcript of January - September 2008 · 2008. 10. 31. · 92.15 5059 145.51 9M/06 9M/07 9M/08 Key ratios...