Euronext - 2019 Universal Registration Document

Presentation of the Group

Description of the Business

TARGET2-Securities Interbolsa settlement activity relies on Target2-Securities (T2S), the settlement platform operated by the European Central Bank. After its smooth and successful migration T2S (1) in March 2016 (integrated in the second migration wave), Interbolsa has been actively working to improve operational processes and implement new software releases, which has allowed to increase the efficiency of the day-to-day operations with T2S. In June 2019, Interbolsa implemented the Release 3.0 of T2S – the main annual release – which included some structural adaptations: n updating of the ISO messages used to accommodate changes that took place between 2013 and 2017; n enrichment of information in debit and credit notification messages or account statements to make the reconciliation process more efficient; n introduction of an optional parameter that allows to define a minimum amount per self-balancing transaction. In November 2019, Interbolsa implemented the Release 3.2, which included: n new partial release functionality to increase settlement efficiency; n extend of daily windows for partial settlement; n availability of new fields in messages, cash and securities, useful for processing corporate events and reconciliations; and n the possibility of the T2S to allow treatment of aggregated messages in files.

CSD links CSD links allow participants of a given CSD (referred to as Investor CSD) to facilitate the access to securities issued in another CSD (referred to as Issuer CSD). Both Interbolsa and VPS are involved in links between CSDs, either as Issuer CSD or as Investor CSD: n Interbolsa has established Investor CSD links with Monte Titoli, Iberclear, Euroclear France, Euroclear Nederland and NBB-SSS (through Euroclear France) allowing its customers to access debt securities issued in one of these CSDs from Interbolsa accounts; n in 2019, Interbolsa also opened an account with Clearstream Banking Frankfurt (CBF) in view of establishing an Investor CSD link with CBF in 2020; n VPS has indirect links with Euroclear Bank and Clearstream Banking Luxembourg, operated through financial intermediaries and allowing companies established abroad to list and issue their securities in the Norwegian market; n in March 2019, Iberclear became a participant of Interbolsa as Investor CSD. By establishing links with other Issuer CSD through either VPS or Interbolsa, Euronext allows investors and their intermediaries (custodians, etc.) to access securities initially issued in other markets through their domestic Euronext CSD. By accepting link requests from other Investor CSDs in VPS or Interbolsa, Euronext allows issuers to maximize their distribution reach (as investors ultimately connected to these Investor CSDs gain easier access to securities issued in VPS or Interbolsa).

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Tables providing the list of links of VPS & Interbolsa as Investors CSDs of other CSDs and of other CSDs having an access to VPS & Interbolsa acting as Issuer CSDs.

VPS & INTERBOLSA AS ISSUER CSDS

Countries

CSDs

VPS

Interbolsa

Belgium

Euroclear Belgium

France

Euroclear France

Germany

Clearstream Banking Frankfurt

X X

Luxembourg

Clearstream Banking Luxembourg

Switzerland

SIX SIS AG

Italy

Monte Titoly

X X

Spain

Iberclear

X

Belgium ICSD

Euroclear Bank

(1) T2S provides integrated and harmonised cross-border settlement of transactions in central bank money.

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2019 UNIVERSAL REGISTRATION DOCUMENT