Euronext - 2020 Universal Registration Document

Presentation of the Group

Description of the Business

1.3.2 STRENGTHS

Since 2016, Euronext also offer user choice in clearing for the equity markets within the Eurozone, through the implementation of a preferred Central Counterparty (“CCP”) model followed by a fully interoperable service. Euronext Technology Solutions & other business offers technology solutions and services to exchanges and venue operators. These solutions and services use Optiq® and other applications developed by Euronext or licensed from third-parties. Optiq® has already been licensed to five international exchanges which will benefit from the reliability, flexibility and lower cost of ownership benefits that Optiq® provides. Euronext continues to provide software support and maintenance services for the legacy trading platforms, Euronext UTP and Nouveau Système de Cotation (“NSC™”). Euronext has a perpetual, royalty-free license from ICE to use, modify and sub-license these platforms (see section 7.2 Material contracts and related party transaction). In addition to software licensing, Euronext offers access to its trading software in the form of managed services. Exchanges and venue operators can take advantage of fully-hosted trading and clearing platforms without investing in data center 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. The Technologies and 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 SFTI® network or who take colocation space in the ICE data centers that house Euronext’s trading platforms.

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focus on core European markets

resilient model delivering consistent

growth and profitability

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liquidity and transparency to all market participants through regulated exchanges

offering of a wide range of product

united in diversity’ with an open federal model

Focus on Core European Markets Euronext benefits from a diverse client base, both in terms of geographic distribution and type of trading flow. The Company has an established continental European and United Kingdom client base, representing 58% of cash trading average daily volume and 73% of derivatives trading average daily volume for the year ended 31 December 2020. A substantial portion of the flow from the United Kingdom is from global clients with headquarters based in the United States. While United States and Asian clients accounted for 39% and 3% respectively of Euronext’s cash trading average daily volume and 27% and 0% respectively of its derivatives trading average daily volume for the year ended 31 December 2020, the Group believes these geographic client segments are currently underexploited and offer potential for growth. Euronext’s sources of revenues are diversified across the businesses, markets and client segments. For the year ended 31 December 2020, approximately 50% of the Company’s revenues were generated by the non-volume related businesses. Non-volume related businesses include advanced data services, investor services, listings excluding IPOs, custody and settlement, and Euronext Technology Solutions & other. This helps to limit Euronext’s exposure to cyclicality in demand for particular products or services or in individual markets. Resilient Model Delivering Consistent Growth and Profitability

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2020 UNIVERSAL REGISTRATION DOCUMENT