Euronext - 2019 Universal Registration Document

Risk Management & Control Structure 2 Risk Factors

Potential Litigation Risks and Other Liabilities

Risk Identification and Description

Potential Impacts on the Group

FINANCIAL RISK Market Risk The Group is exposed to interest rate risk on both fixed-rate and floating rate financial assets and liabilities, including the fixed-rate bonds and the Revolving Credit Facility. The Group is exposed to foreign currency risk arising from the translation of assets and liabilities of subsidiaries with functional currencies other than the Euro. Capital Risk The Risk that the Group and its regulated entities do not comply with the regulatory requirements, including capital requirements, imposed by local regulation. Liquidity Risk The Group would be exposed to a liquidity risk in the case where its short-term liabilities become, at any date, higher than its cash, cash equivalents, short-term financial investments and available bank facilities and in the case where the Group is not able to refinance this liquidity deficit, for example, through new banking lines. Credit Risk The Group is exposed to credit risk in the event of a counterparty’s default. The Group’s exposure to credit risk arises from its operating activities (primarily trade receivables) and from its financing activities, including the investment of cash equivalents and short-term financial investments. Euronext operates in a highly regulated environment so many aspects of Euronext’s business involve potential litigation risks. Other liability risks may arise under laws and regulations relating to insurance, tax, employee behavior, anti-money laundering, financial sanctions, foreign asset controls, data privacy and foreign corrupt practices areas. These risks include potential liability from disputes over terms of a securities trade or from claims that a system or operational failure or delay caused monetary losses to a customer, as well as potential liability from claims that the Group facilitated an unauthorised transaction or that it provided materially false or misleading statements in connection with a transaction. These risks also include potential liability from disputes as regard non-compliance by the Group to its data privacy obligations as controller or processor of personal data. Risk Control & Mitigation In order to ensure that Euronext remains in compliance has taken a range of proactive preventative measures. Legal functions have been established at various locations to ensure coverage of all business lines and to ensure that local laws are respected. The legal department provides support to throughout all stages of various business projects, from embryonic stage to final delivery. With respect to vendors, the legal department has sought to put in place appropriate agreements (and where possible, uses model agreements) in order to adequately protect Euronext’s position in relation to potential litigious matters. Risk Identification and Description

Euronext could be exposed to fines or sanctions from relevant regulators, and this may also result in significant reputational damage to Euronext. In addition, Euronext could incur significant legal expenses in defending claims, even those without merit. Any adverse resolution of any lawsuit or claim against the Group may require it to pay substantial damages or impose restrictions on how it conducts its business, any of which could have an effect on both the business and financial results, and the reputation of the Group.

In order to avoid litigation legal risks are identified, tracked and reported upon by leveraging the Euronext group risk management framework. In addition, conduct risk is chiefly managed by way of Euronext imposing a wide range of policies and procedures on employees and enforcing these through regular training and monitoring, while an employee code of business conduct sets out the principles of behaviour required of all Company employees and this is provided to all new joiners.

Potential Impacts on the Group

Market Risk Unfavorablemovements in interest rate could negatively impact the net financial income of the Group by increasing the cost of borrowing or refinancing, or reducing interest income. Fluctuations in non-Euro currencies particularly with respect to the NOK, USD and GBP may impact the income generated and the (regulatory) equity in these currencieswhen translated in EUR in the Consolidated Financial Statements. Capital Risk In the event that the Group or its regulated subsidiaries do not have sufficient regulatory capital, they may incur fines, which may negatively impact the Euronext brand and its reputation. Liquidity Risk In the event that the Company fails to maintain a level of liquidity sufficient to cover its short term obligations, it will increase its default risk and potentially damage its creditworthiness and subsequently its reputation.

Credit Risk The Group is exposed to credit risk from its operating activities (primarily trade receivables), from its financing activities, from the investment of its cash and cash equivalents and short-term financial investments and from derivatives contracted for hedging purposes.

52

www.euronext.com

2019 UNIVERSAL REGISTRATION DOCUMENT