Euronext - 2019 Universal Registration Document

Presentation of the Group 1 Description of the Business

The table below shows the proportion of Euronext’s customer base by geographic origin (location of worldwide headquarters) using derivatives listed on its markets for the last twelve months ended 31 December 2019.

recognition status, both of which have been included in the main global commodity indices (S&P World Commodity Index, Rogers International Commodity index), making them the first non-U.S. grains contracts to be included in these global indices. The commodity team continues to build on the strategy announced in 2018 which is articulated around: n focus on building our existing core contracts to their full potential and, in particular, leveraging on the MATIF brand for grains and oilseeds. EIM with trade finance and repos along with location swaps will become a core element of the agricultural franchise and generate growing revenue streams over the next 3–5 years. It will protect our physically delivered contracts, which have been suffering over the last few years from being exposed as the only major player without a digital contract delivery system; n cash settled platform will allow the franchise to extend from the current 3 grain products offering and enable listing and trading of a number of desired price reference contracts, as simpler cash settled products when appropriate ( e.g. when physical delivery is not a key or desired pricing mechanism); n monitor and capture opportunity to build traction and liquidity in our new contracts: Euronext launched the PRE futures contract in June 2019: this Paris Real Estate, cash settled future, is the first futures contract on Paris Real Estate prices (exclusively transacted prices registered by the “Notaires”). We continue to work on building up liquidity and interest in this initiative; n monitoring of opportunities for non-organic growth, blockchain applications linked to EIM, etc.: with the recent acquisitions in Norway, the commodities franchise is becoming a much stronger and more diverse actor globally, building on the historic Agricultural footprint to soon offer salmon futures and new ideas in Power. Derivatives Trading Members Trading members in Euronext’s derivative markets are either dealers, brokers or both. Their activities range from retail broking, investment banking, dealing, algorithmic and high frequency trading to international physical trading. The Group’s client base comprises 156 direct trading members (of which 85 are both cash and derivatives and 79 are commodities trading members) as of 31 December 2019 and is significantly diversified both in terms of types of clients and geographic coverage. Trading members can also become market makers or liquidity providers, which is crucial to the good functioning of the price formation mechanism for derivative instruments. In such cases, the parties enter into an agreement with Euronext, specifying their obligations in terms of displayed liquidity and spreads. Market makers and liquidity providers are able to place several orders at the same time through the use of mass quotes, allowing these trading members to send buy and sell orders for many contract months using only one message, leading to optimal efficiency in updating Euronext’s full range of derivatives prices in a timely manner. Derivatives Average Daily Volume by Geographic Origin The average daily volume on Euronext’s derivatives markets for the last twelve months ended 31 December 2019 reached 596,374 contracts representing a total open interest exceeding 15.2 million contracts at the end of December 2019.

Norway 1%

Sweden 1%

Germany 1%

Belgium 0%

Italy 0%

Portugal 0%

Switzerland 9%

Others 0%

Ireland 6%

The Netherlands 26%

United Kingdom 10%

France 16%

USA 29%

FX Trading In 2019, FastMatch (Euronext FX since April rebranding) – Euronext’s Electronic Communication Network (ECN) in the spot Foreign Exchange (FX) since its acquisition in August 2017 – continued to grow its business successfully, and outperformed its peers despite extremely challenging market conditions (historical low FX volatility), as a result of continued growth in client acquisition and focus on effective liquidity management for existing clients. Euronext FX also expanded geographically, with the launch of the first ever FX matching engine in Singapore, adding to the platform’s global capabilities – which already operates in New York, London and Tokyo. In 2020, and in addition to further development of its market data offering, Euronext FX will diversify its product line by launching derivatives, in order to generate additional revenue, enhance product breadth and increase client footprint.

1.3.4.2 Cash, Derivatives and Spot FX Markets − Recent Developments

Cash Trading

Advanced Pricing Strategy During 2019, Euronext continued to optimize and adjust its pricing strategy on several key components of the tariff structure. The flagship liquidity provision program (Supplemental Liquidity Program) has been substantially revamped both from a pricing and requirements perspective. In addition to that, a new fee structure has been implemented for the connections used to access Euronext’s cash trading systems.

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2019 UNIVERSAL REGISTRATION DOCUMENT