Euronext - 2019 Universal Registration Document

Euronext, a sustainable exchange

Value Creation by Euronext

Euronext has a special position in the financial ecosystem. It serves the real economy by bringing together buyers and sellers in high integrity trading venues that are transparent, efficient and reliable. In this key role Euronext has a responsibility vis- à-vis the whole finance community to contribute to the financial stability and the sustainable agenda in the countries in which it operates (see Euronext’s value creation model on the integration presentation). As a key market infrastructure, at the heart of the financial ecosystem, Euronext will support the acceleration of the transition towards sustainable growth and finance, notably by capitalizing on Oslo Børs VPS’s expertise and the Group’s franchise in green bonds and ESG indices. In 2019, Euronext has decided to make sustainable finance a key pillar of its strategy “Lets’ grow together” with a strong commitment to participate to the SDG’s (see below). For more details on the strategy please refer to section 1.2. The Euronext ESG ambition is to finance local and global real economy in its transition towards a sustainable society by: n driving investment in innovative, sustainable products and services through secure and transparent markets, in continuous collaboration with the financial community; n inspiring and promoting sustainable tangible practices within the Company and towards our communities, by respecting and developing our people and by supporting our ecosystem. This dual ambition is fully aligned with the Action Plan on Financing Sustainable Growth launched by the European Commission in 2018 and with the Green deal presented by the European Commission in December 2019. As a first step towards the creation of a Euronext ESG strategy, Euronext launched, beginning of 2019, a pan-European stakeholder consultation process to identify the ESG related issues that its stakeholders believe should be its main areas of attention and effort. Euronext has had the feedback from a wide selection of its stakeholders, especially investors, analysts and issuers, providing valuable insights. On the basis of the results Euronext has performed a materiality analysis, defining the key issues where Euronext can have the most impact on the economy, society and environment, and that most influence the decision-making of its stakeholders. Euronext’s stakeholders recognise that Euronext plays a role in ESG from different angles: Euronext as a representative of the capital market ecosystem, Euronext as a business providing relevant products and as a corporate actor. In each of these roles, Euronext has different responsibilities. On the basis of the feedback received from the stakeholders Euronext has identified 11 key issues, that were grouped them into 5 material impact areas, consistent with the Euronext dual ESG ambition. STAKEHOLDER EXPECTATIONS AND MATERIALITY ANALYSIS

16 companies from those countries in 2019 on its markets, with a combined market capitalization of close to €1 billion. More than 40% of the 132 TechShare participants were issued from those countries. While competition in the cash trading market is relatively mature, in recent years Euronext has faced increased pressure on pricing and market share in equity options trading, in particular from new entrants to the market that have fee structures that are significantly lower than the Company’s fee structure and a reduced cost structure aligned with their narrower service offering. However, Euronext remained the largest liquidity pool in Europe, with a market share on its cash equity markets above 60%. The competition for proprietary real-time market data is still limited as trading participants prefer to receive and use market data from the home exchange rather than using substitute pricing. However, Euronext is experiencing an increasing pressure, both from a regulatory (MiFID II) and competitive perspective (alternative trading platforms, including MTFs such as CBOE who focus on the most liquid blue chip stocks). Nevertheless, Euronext believes that diversity in a wide range of stocks is Euronext’s strength in this increasingly competitive environment and will help Euronext retain its position as preferred data source. In less time critical areas such as reference data – and particularly corporate actions and historical data – participants want a consolidated European feed from a single source. Euronext is not the only source of corporate actions or historical data so there is more competition in these areas. As for market operator technology, the market for financial information technology is intensely competitive and characterised by rapidly changing technology and new entrants. Euronext has built the next generation trading platform, Optiq®, and is well positioned to benefit from its state-of-the art stability and latency. For more information on the competition, see section 1.1.3. “Business Environment”

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LONG TERM VALUE FOR ALL OUR STAKEHOLDERS

Euronext ESG Mission and Ambition The world is facing significant challenges in ensuring a sustainable future for our people and our planet. Many national and international initiatives are addressing these challenges. Every organisation will have to play its own role in the transition to a sustainable society, depending on its impact and its opportunities. The finance sector can be an important contributor to the global sustainability agenda and can promote sustainable finance, by incorporating environmental, social and governance (ESG) factors into investment decision-making, and by supporting the allocation of capital to sustainable initiatives.

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2019 UNIVERSAL REGISTRATION DOCUMENT