Euronext - 2019 Universal Registration Document

Presentation of the Group 1 Description of the Business

Fixed Income Euronext operates bond trading on its regulated market with a particular focus on the retail market. Over 100 members trade 5,600 corporate, financial institutions and government listed bonds, representing a monthly turnover of approximately €0.4 billion. Euronext Block for SME Dark trading venues have become crucial alternatives to regulated markets, and MiFID II regulatory changes have further solidified the need for such platforms, specifically in the large-in-scale (LIS) space. Investors continue to seek efficient mechanisms to source liquidity, and execute trades safely. Euronext offers to the local community the Block MTF platform to establish itself as a hub for SME Block Trading. During the first phase of the new strategy roll-out, focus is on small- and mid- cap stocks in the Belgian, Dutch, French, and Portuguese markets. Euronext is to create a significant offer to the local members and Euronext is unique in its ability to utilize historical order and trade data to help trading participants target appropriate counterparties and increase their potential for trading. In addition to these benefits, onboarding new members is simplified thanks to a streamlined Euronext membership process. Exchange Traded Funds Euronext offers the ETF community a comprehensive solution for multi-national listing and trading in ETFs and investments, within Euronext’s Single Order Book. Euronext’s ETF markets are supported by robust market infrastructure where product supply and demand meet within a framework of deep liquidity and advanced price formation. Euronext develops relations not only with issuers, but also with liquidity providers, intermediaries, investors, regulators and others in the ETF community to understand their challenges and needs, providing strong alignment with Euronext’s business goals and a strong foundation to co-create new products to accelerate growth in the ETF industry with the support of its major participants. Euronext’s client alignment is demonstrated by Euronext winning ETF Express award during 2018, and in 2019 – the fourth time in a row, being consistently recognised as the Best European Exchange for Listing ETFs. This award is voted for by Euronext’s clients.

STOXX 600 benchmark index. Euronext is ranked first in Europe as measured by domestic market capitalisation and first by average daily lit equity trading value, including BATS-Chi-X. In addition, the Group has a solid ETF trading franchise based on the listing of 1,240 ETFs in its markets. In 2019, total Euronext transaction value on equity was €1,892 billion, down -9.5% from €2,090 billion in 2018 and compared to €1,935 billion in 2017. In Equities, Euronext outperforms peer exchanges in yield extraction while maintaining high market share. This is achieved through a combination of superior execution quality, sophisticated liquidity schemes and advanced pricing segmentation. Euronext offers a compelling value proposition across the transaction chain, from blue chips to small companies, with tailored market models to maximize the depth and quality of liquidity available for trading those companies in the secondary market. Since the introduction of new European Union legislation in 2007, via MiFID, competition for share trading has been intense. Yet Euronext has been successful in maintaining market share above 60% throughout the past decade demonstrating the resilience in its core business. Euronext’s product, pricing and client strategy and the execution thereof are vital to maintain the high quality of execution and broad diversity of clients active on Euronext’s markets. Euronext operates equity markets of which the main financial instruments are shares. Shares are any share of capital stock or any other equity securities issued by a corporation or other incorporated business enterprise. Since 2017, in Equities, Euronext’s competitive position has been enhanced due to evolution in the blue chip liquidity scheme, a new fee scheme for non-member proprietary flow, a new best execution service for retail investors (Best of Book) and new incentives embedded in the agency tariff to attract incremental flow from trading members. Euronext has re-positioned both the equity and warrants business to ensure its offering to local members in Euronext’s home markets is attractive and that flow from the local client community is either retained or repatriated. These initiatives enable Euronext to continue enhancing execution quality available on Euronext’s markets which is key to add value to clients and to compete effectively. Best of Book Service for Retail Best Execution Since 2017, Euronext kept improving its new best execution service for retail orders. In partnership with dedicated liquidity providers, Best of Book offers price improvement in the central order book for retail brokers. This helps ensure best execution for brokers executing orders on behalf of retail clients, in a way that ensures compliance and that the end investor achieves an optimum result. The service promotes and strengthens the diversity of Euronext’s order book to the benefit of the whole market. Omega Fee Scheme for Non-Member Proprietary Flow In 2016, Euronext launched a new pilot fee scheme for non-member proprietary trading flow. Non-member proprietary firms wishing to participate in the Omega pilot scheme enter into a tripartite arrangement with Euronext and the member intermediary. This scheme provides non-member firms with improved value when trading on Euronext markets while promoting and strengthening the diversity of Euronext’s order book to the benefit of the whole market.

AWARDS 2018

AWARD WINNER 2019

Pan-European ETF MTF Euronext intends to become the one-stop-shop pan-European ETF platform with an ambition to be the #1 trading venue for ETFs in Europe. The European ETF market is fragmented and opaque with approximately 70% of trading volume in the region taking place off-exchange. Yet ETFs are increasingly popular among both retail and institutional investors, as the trend for passive investing grows

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www.euronext.com

2019 UNIVERSAL REGISTRATION DOCUMENT