Euronext - 2019 Universal Registration Document

Risk Management & Control Structure

Risk Factors

Risk Control & Mitigation Euronext considers international institutions’ economic outlooks to assess the level of this risk. With a consensus of about 3.2% global real GDP growth, and +1.3% in the Euro area for 2019 at the date of publication of this document, the risk of an adverse impact of global and regional economy trends is very low but not insignificant.

This risk is partially mitigated by Euronext’s strategy of diversification, geographically and in terms of area of activity. Euronext has put in to place a wide range of measures to secure its market operations. Please refer to the operational risk section Health and Safety.

2

Regulatory Evolution and Enhanced Regulatory Scrutiny

Risk Identification and Description

Potential Impacts on the Group

Euronext’s business in Europe is subject to extensive regulation at the European level and by national regulators in the relevant European jurisdictions where the Group has operations: Belgium, France, Ireland, the Netherlands, Norway, Portugal and the United Kingdom. In addition, the Company has a presence in the United States and Singapore. Regulatory scrutiny following the financial crisis continue to generate risks and opportunities.

n As the Group seeks to grow its product base or the jurisdictions in which it operates, it could become subject to oversight by additional regulatory bodies which may expand the regulatory and compliance requirements. n Additional regulatory evolutions may affect Euronext activity and/or revenue if designed adversely. n Decisions by any of Euronext’s regulators to impose measures which may impact the competitive situation and possible strategy of the Group. n New supervisory fees are expected from ESMA by 2022 for its new direct supervision powers on data reporting providers. In addition, potential changes in the fee structure of Euronext’s supervisory competent authoritiesmay occur following the implementation of the new EU regulatory framework in the European securities markets generally. n Delay or denials of regulatory approval requested by Euronext to, inter alia , further its strategy,leverage business opportunities and change its governance – all potentially impacting Euronext’s competitive position. n Potential fines if Euronext breaches regulations, impacting results as well as Euronext’s reputation. n Reduction of Euronext’s bandwidth to perform business related projects and agility due to operational implementation. n Any review of the pricing of market data on a reasonable commercial basis which may impact a significant stream of revenue for Euronext depending on how requirements are defined. n The tick size regime, initially favoring the growth of trading via systematic internalisers, is expected to be amended in the first half of 2020 to the benefit of exchanges by re-establishing a level playing field. n The open access provisions seek to increase competition by allowing competitors to improve their value offer or to create derivatives on benchmarks historically used exclusively by Euronext. Additional resource devoted to increased regulatory reporting requirementsmay impact cost and compliance. n Any agreement on the EU10 FTT could have an impact on revenues in certain countries.

MiFID II/MiFIR The regulatory regime within Europe has been amended and extended. The revised European Union Markets in Financial Instruments Directive (MiFID II/ MiFIR) has been effective since 3 January 2018. Compliance with this new regime by all market actors is changing the competitive landscape and may, therefore, have an adverse effect on the Company’s business. The main sources of risk and their possible consequences are closely monitored and may impact ENX’s market share or directly its revenue. EU Financial Transaction Tax Ongoing discussions on the potential for an EU Financial Transaction Tax (covering 10Member States) may have a negative impact on Euronext’s trading volumes IT and Cyber Security Standards Increased regulatory and policymaking focus on cyber security and data protection issues at European and national levels requires Euronext alignment with all applicable laws and regulations. Regulations have different scope and impact in terms of Euronext group processes and stakeholders. Directive on security of Network and Information Systems (“NIS Directive”) is anEuropean directivewith specific processes per country in terms of processes, reporting and controls that seeks to safeguard IT and computer systems. Loi de programmationmilitaire (“LPM”) is a French lawwhere specific controls are mandated. Regulation of Emerging Technology Increased regulatory and policymaking focus on the development of Fintech services and products at European and national levels. Other regulatory frameworks/initiatives Recent regulations, including the General Data Protection Regulation (GDPR), Market Abuse Regulation (MAR) Central Securities Depository Regulation (CSDR) and Benchmark Regulation (BMR) require significant effort to implement, impacting operational capacity as well as increasing risk of non- compliance.

n While we support such initiatives, current and future legislation will likely impact the Group’s operational and compliance models and as such may increase cost.

n While Fintech services and products should be encouraged and a regulatory framework developed to ensure this, there may be a risk of unlevel playing field competition between similar products and services. n The Group operational processes have been adapted across all of its departments to ensure compliance with the GDPR, including a clear governance structure around datamanagement and the use of personal data. n The Group has engaged in discussions in some of its jurisdictions where regulatory initiatives are being developed and is monitoring initiatives at the European level. n The implementation of BMR required effort to implement,impacting operational capacity as well as increasing risk of non-compliance.The increased oversight of the registered benchmarks requires additional resource to maintain.

45

2019 UNIVERSAL REGISTRATION DOCUMENT