Euronext - 2019 Universal Registration Document

Risk Management & Control Structure 2 Risk Factors

Clearing, Settlement and Custodial Risk

Risk Identification and Description

Potential Impacts on the Group

The Group relies on key external third parties for post-trade services including clearing and settlement and other services. In particular, Euronext under its clearing service agreements with LCH S.A., the Paris based clearing house of LCH group Ltd, which is majority owned by LSEG. Euronext relies on LCH S.A. to provide Central Counter Party (CCP) services for trades executed on the Company’s cash and derivatives markets and tomanage related CCP functions, such as risk, novation and multilateral netting. In addition, Euronext relies on EuroCCP to provide CCP services for trades executed on the Company’s cash markets and to manage related CCP functions for Euronext Dublin and as an alternative CCP for the other cash markets under the User Choice Model. For the Oslo cash markets, Euronext Oslo relies on 3 interoperable CCPs: LCH Ltd, EuroCCP & Six X Clear, while the Oslo Derivatives markets, Euronext Oslo relies on Six X Clear. The Group also relies on the services of Euroclear group (“Euroclear”) for the settlement of cash market trades other than in Portugal. Risk Control & Mitigation Euronext has contracts with each of its post-trade providers that establish clear governance and service quality. Specifically, with respect to LCH S.A. a long-term contract has been signed between two entities, in addition to which Euronext holds The Company depends on secure premises to protect its staff and physical assets,aswell as robust safeguards ensuring IToperations remain uninterrupted. Given the symbolic nature of the stock exchange, the Group may be subject to a direct or indirect target of protest and extremist organisations that employ means to achieve their social or political objectives. The Group is also subject to threats such as natural disasters and public health emergencies. According to the severity of the threat or incident may disrupt business operations, including markets disruption, harmed staff and damage to physical assets. Covid-19 The Covid-19 epidemic is a risk that may impact the health of the Group employees and those of our business partners and subsequently the ability to run critical business operations. Risk Control & Mitigation Euronext has rigorous physical security arrangements in place in order to ensure the physical security of its staff and premises. The Group is supported by and liaise with local governments and police in its jurisdictions. The Group also monitors any potential security threats in its locations. Euronext has robust Business Continuity Management arrangements in place in order to minimize the impact of disruptive events should they occur. These arrangements are reviewed and tested on a regular and ongoing basis and include staff testing and awareness, crisis management planning and testing as well as disaster recovery planning. Health and Safety Risk Identification and Description

To the extent that any of the third parties on which Euronext relies experiences difficulties, materially changes its business relationship with the Company or is unable for any reason to perform its obligations, any such event could have a material adverse effect on the business, reputation, results of operations, financial condition and cash flows of Euronext.

11.1% stake in LCH S.A. as well as a seat on the Board of Directors all of which help ensure a stable durable relationship. Euronext holds approximately 5% of Euroclear as well as membership on the Board of Directors ensuring that Euronext’s is involved decision making at Euroclear.

Potential Impacts on the Group

In the event of an attack or a threat of an attack as well as natural disasters or public health emergencies, the Group may experience a significant delay in resuming normal business operations which may negatively impact the reputation. In addition, the closing of the market would translate into a revenue loss.

Covid-19 The number of confirmed cases of COVID-19 is increasing. If the pandemic continues and results impact the health of employees, the Group may not have the human resource to manage the business.

Covid-19 Euronext has a comprehensive Business Continuity program with related plans for all its locations and across the company, which are regularly tested, including work from home. A pandemic plan is part of this program, has been leveraged in the current COVID-19 situation, and additional measures have been added such as rotating teams for all staff members to reinforce separation of teams, to limit contamination, reinforced cleaning in all locations and currently curtailed travel and events.

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2019 UNIVERSAL REGISTRATION DOCUMENT