BME and MiFID Brussels, October

2 Key operator in Europe 2007 european stock exchanges – Spain, 4th Exchange by size >BME ranks 4th in equity turnover Billions € Place 1o1o 2o2o 3o3o 4o4o 5o5o 6o6o Source: federation of European Stock Exchanges (FESE). 30/04/2007

3 BME Versus Other Exchanges (capitalisation) Source: BME, 06/06/07 € Mill.

4 Source: FESE, Share Ownership Structure in Europe

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6 1.Liquidity 2.Technology 3.Cost Three drivers for future

7 Turnover has been growing above the european average. SIBE turnover growth reaches 22% CAGR between

8 Spanish corporate dynamism Market capitalisation (bill. €) and euro zone ranking Telecomunic. Banks Oil & Petrol Utilities Textile /Distrib. n.a. #11 #10 #4 #5 #7 #4 #1 #6 #3 #6 #3 #1 May 1996 May 2007 >Spanish companies have increased significantly their international presence through M&A, multiplying by nine the market cap and by more than twenty the turnover since 1996 Top 8: bill. € Mket. cap. Mket. cap bill. € Turnover(jan-may.) Top 8 : 46.0 bill. € Mket. cap. Mket. cap bill.€ Turnover (jan.-may.) (jan.-may.) #5 #3 Transport Source: Bloomberg

9 1174,81,183,86% 2151,41,023,31% 3141,20,952,86% 4117,70,802,90% 5106,00,732,81% 6104,50,713,50% 7100,40,683,00% 898,90,673,12% 997,80,673,69% 1090,10,610,82% 1670,10,471,74% 2549,80,340,98% RK.Company January-Jul 2007 Value (€ Bn.) Daily Average Value (€ Bn.) Source: Bloomberg (1) As of 07/31/07 Relative Weight in EuroStoxx50 (%) (1) Highly liquid market spanish blue chips are the stocks with highest liquidity at UEM

10 >Highest-ever trading volumes on equity market (+61,6%) >Record order volumes for a single trading day (28 feb) >Technological capacity of SIBE increased threefold in January >Advanced in the launch and trading of ETFs >Consolidation of MAB as the market for SICAVs >Record number of processed orders in 1Q 2007 : 19.2 Mill. (up % from 1Q 2006) Equity Turnover (SIBE) % +62% Billion € Equity market: High growth in turnover Source: BME

11 Spanish market historical growth “mid-caps” contribution to the increasing turnover >Several spanish “mid-caps” are actively investing abroad and issuing shares in order to finance non-organic growth. Turnover, excluded top ten stocks (bill.€) Mid and small market cap turnover (*) Jan. - May. 07 Source: BME

12 Highly liquid market BME: The Principal Market for Spanish Shares >BME’s solid background and high liquidity makes BME the principal market for Spanish stocks >During last years, BME has preserved and expanded spanish shares trading % Weight of trading in Spanish Shares abroad versus total traded in BME Source: BME (1) Increase due to Terra Networks Nasdaq’s listing (1)

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14 International comparative of liquidity

15 State-of-the-Art Technology Competitive and In-House Developed Technology >High performance; above 99.9% of availability >Full on-line, back up systems >Equity platform capacity increased three fold (January 2007) Reliable >Capacity to absorb growing trading volumes >Increasing sales of BME’s in-house systems Competitive >BME was the first international stock market to interconnect different stock exchanges (Madrid, Barcelona, Bilbao and Valencia) in 1989 Pioneer >In-house development: I)providing IT solutions for the entire value chain II)flexibility: fully customised, quick update and risk prevention In-house

16 Competitive Fee Structure Exchange Fees By Country 2006

17 Fees Comparison Exchange Fees By Country 2006 (< 1 Basic Point)

18 Fees Comparison Total Cost By Country 2006 (< 35 Basic Point)

19 MiFID aspects for Exchanges >Pre Trade Transparency >Post Trade Transparency >Best Execution (for Investment Services Firms) >Transaction Reporting (special requirements for CNMV) >Orders large in scale >Deferred publication of Blocks >Competitors: Sistematic Internalisers and MTFs

20 Excellent relation liquidity, cost and technology Strong Competitive position in Best Execution STP process in trading+settlement Risk in market fragmentation due to new competitors IS and MTFs But also new oportunities in data information, market access and client servises. BME and MiFID