Euronext - 2019 Universal Registration Document

Presentation of the Group

Description of the Business

Historically, revenue from the Euronext Technology Solutions & other business came from software license and maintenance fees. However, Euronext’s ability to configure its technology for a wide range of market models means that the same Optiq® software can be offered in the form of a managed service. Optiq® as a Service enables exchanges and venue operators to take advantage of fully-hosted trading and clearing platforms without investing in data centre or network infrastructure. With banks and financial intermediaries increasingly seeing migration to cloud and software-as-a-service as solutions to the competing pressures of cost-reduction and regulatory complexity, Euronext’s experience as a service provider is receiving renewed interest. Euronext’s MiFID II compliant MTF and SI services build on Euronext’s own software, processes and infrastructure and offer clients an effective way to reduce costs without increasing regulatory risk. At the end of 2019, Euronext had four managed services in production for European venue operators. The technologies & other business also receives revenue for network connectivity and server colocation under a revenue sharing agreement with ICE. This agreement enables Euronext to benefit from service sales to clients who connect to its markets via the ICE Global Network IGN® or who take colocation space in the ICE data centers that house Euronext’s trading platforms. For more information on the IGN® and colocation see section 5.2 “ Material contracts and related party transactions ”. By combining our services, software, infrastructure, and technology developed for our internal markets alongside an extensive community of members, ISV’s and data vendors who connect to our systems, Euronext is able to offer a compelling solution to exchanges and venue operators globally. The development of a technology centre in Porto has provided a basis to facilitate quick and cost-effective delivery of customized solutions to technology clients. The successful launch of Optiq® across Euronext’s Cash and Derivatives markets has coincided with renewed interest from established exchange groups as well as new venues in utilizing the technology. The hosted model is seen as an attractive model for new trading venues who are looking to outsource both technology and services so they can reduce their cost of ownership and focus on business development. 1.3.7.2 Euronext Technology Solutions & Other − Recent Developments

Euronext has a perpetual, royalty-free license from ICE to use, modify and sub-license Euronext UTP and NSC® (see section 5.2 “ Material contracts and related party transactions ”). At the end of 2019, two Exchange clients remained on Euronext UTP and both have been offered options for migrating to Optiq® ahead of termination of Euronext UTP maintenance. Support for the previous generation trading platform, NSC®, will cease in 2020 once all clients using NSC® have been migrated to Optiq® . This will further simplify Euronext’s technology operation and reduce expenses. Optiq® enables the technologies business to be more competitive by offering solutions that are faster, more resilient and cheaper to operate. It has been designed for high-volume markets and so will meet the throughput and resilience needs of most global exchanges. As a result, Euronext Technology Solutions priorities for the future Optiq® roadmap will include integrating new functions and asset classes to increase the flexibility, configurability and extensibility offered to clients. Most technology solutions provided to clients include software for reference data management, price calculation and market control functions. The high level of commonality between exchange operations around the world means that many of these solutions can be delivered to clients with little or no client- specific customisation. In some cases, client requirements can be met by simple configuration changes and in others, only minor software modifications are required. Whichever approach is taken, the rights to new platform capabilities remain with Euronext and are incorporated into the core product for the benefit of all users (including Euronext itself). This mutually beneficial, user-community approach means that Euronext can maintain an industry leading platform with lower expenses than would otherwise be the case. Where Euronext does not offer commercial in-house software for a function required by a client, third-party software can easily be integrated with Optiq® . This approach is used for the MAR surveillance service offered to MTF operators which provides monitoring of compliance with the Market Abuse Regulation as a remotely delivered service. This service enables clients to outsource their MAR monitoring operations and take advantage of the investments in staff and processes made by Euronext for its own markets. Optiq® will facilitate the development of more such services, specifically those performing analytic and regulatory processing of the large volumes of trading data generated by electronic exchanges. Demand for these applications is expected to grow as the scope and rigour of regulatory monitoring requirements increase.

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2019 UNIVERSAL REGISTRATION DOCUMENT