Euronext - 2019 Universal Registration Document

Presentation of the Group 1 Description of the Business

1.3.6.1 Post Trade − Products and Services

Beyond these core services, Interbolsa and VPS also provide their customers with a range of value-added services (tax reporting, information and data, etc.). Together, Interbolsa and VPS serve 1 600+ issuers of securities (equity, debt, funds, structured products, etc.), with 175+ directly connected participants and almost 1 trillion EUR of assets under custody. Interbolsa Interbolsa is a wholly-owned subsidiary of Euronext, established in Portugal. It provides issuance, custody and settlement services for c. 350 billion EUR of securities. Interbolsa is authorized as a CSD under Regulation (EU) n°909/2014 (CSDR) and is the operator a designated securities settlement system under Directive 98/26/EC. Interbolsa is also the national numbering agency in charge of the assignment of ISIN, CFI and FISN codes according to the ISIN, CFI and FISN codification rules in force (namely to all Portuguese- issued equities and for debt instruments registered or deposited in Interbolsa’s systems), nationwide disclosure of assigned ISIN, CFI and FISN codes and intermediating between national entities, other national numbering agencies and ANNA Service Bureau . VPS VPS is a wholly-owned subsidiary of Euronext, established in Norway. It provides issuance, custody and settlement services for c. 580 billion EUR of securities. VPS is in the process of submitting an application for a CSD licence under Regulation (EU) n°909/2014 (CSDR), following entry into force of the Norwegian legal act implementing CSDR in Norway. Clearing In 2016, Euronext acquired 20% of EuroCCP with the aim of offering customers more choice for the clearing of their trades executed on Euronext cash markets, in line with the EU policy to favour competition in clearing services (in particular through open access provisions enshrined in MiFIR). In December 2019, Euronext entered into a binding agreement to sell its 20% minority stake in EuroCCP to Cboe Global Markets, alongside the other current EuroCCP shareholders. The transaction is expected to close in H1 2020, subject to receipt of required regulatory clearances and the arrangement of a supporting liquidity facility at the EuroCCP clearing entity level. Integration of VPS VPS integration into the Group, following the acquisition of 100% of OB VPS by Euronext, has very significantly increased the size of Euronext custody & settlement business, from c. 350 billion EUR of assets under custody to almost 1 trillion EUR of assets under custody. Custody & Settlement 1.3.6.2 Post Trade − Recent Developments

Clearing Euronext does not operate its own Central Counterparty (CCP) and relies on strong partnership and contractual arrangements with external providers for the clearing of trades executed on its markets: n trades executed on Euronext derivatives markets are cleared by LCH S.A. according to a specific clearing agreement (the Derivatives Clearing Agreement); n trades executed on Euronext cash markets are cleared by LCH S.A. as the default CCP, according to a separate clearing agreement (the Cash Clearing Agreement), and by EuroCCP as an alternative option; n trades executed on Euronext Dublin are cleared by EuroCCP; n trades executed on the London Recognized Investment Exchange are cleared by LCH S.A. (extension of the single order book) and by EuroCCP if trades are related to ETFs or the “Block facility”; n trades executed on Olso Børs cash markets are cleared by a set of 3 interoperable CCPs: EuroCCP, SIX x-clear and LCH Ltd. LCH S.A. The partnership between Euronext and LCH S.A. relies on three pillars: i) Euronext owns 11,1% of LCH SA, has the right to appoint one Director at LCH S.A. board, ii) Euronext and LCH S.A. have signed a 10-year agreement for the clearing of derivatives (the Derivatives Clearing Agreement) and iii) Euronext and LCH S.A. have a clearing agreement for cash markets (the Cash Clearing Agreement). LCH S.A. is a EU27 based multi-asset classes CCP covering Listed and OTC derivatives, Commodities, CDS, Cash equities and ETFs as well as Repo Fixed income market. Thanks to their position across those market segments, LCH S.A. have a large pool of collateral posted by clearing members enabling them to be extremely resilient to stressed market conditions requiring short term liquidity as defined by ESMA through the CCP stress tests framework. Under the Derivatives Clearing Agreement, renewed in 2017, Euronext benefits from a significant revenue sharing with LCH S.A., at approximately the same level of EBITDA (1) as the previous agreement. Euronext therefore receives clearing fee revenues based on the number of financial and commodities derivatives trades cleared through LCH S.A. The Derivatives Clearing Agreement features solid governance rights as well as pre-emption rights for Euronext, in the case of a sale of LCH S.A. Custody & Settlement Euronext operates and fully owns two CSDs, Interbolsa (Portugal) and VPS (Norway). Both CSDs play a central role in the Portuguese and Norwegian securities markets by providing issuance, custody and settlement services across multiple asset classes (equities, fixed income, funds) to issuers or their agents, financial institutions (custodians, broker-dealers, etc.) and other market infrastructures (CCPs, etc.).

As defined in Chapter 5 and defined as EBITDA 1 in section 7.1.1

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2019 UNIVERSAL REGISTRATION DOCUMENT