Euronext - 2020 Universal Registration Document

Presentation of the Group 1 Description of the Business

The following table sets out information relating to the sources of total revenue for the year ended 31 December 2020 and for the year ended 31 December 2019:

Year ended 31 December 2020

Year ended 31 December 2019

Revenue % of total revenues

Revenue % of total revenues

In thousands of euros

Listing

145,473

16.5%

128,951

19.0%

Trading revenue

365,100

41.3%

272,810

40.2%

of which:

n Cash trading

262,226

29.7%

205,565

30.3%

n Derivatives trading

49,206

5.6%

44,324

6.5%

n Spot FX trading

26,352

3.0%

22,921

3.4%

n Power trading

27,316

3.1%

Investor services

7,584

0.9%

5,735

0.8%

Advanced data services

139,036

15.7%

128,756

19.0%

Post-trade

177,228

20.0%

104,831

15.4%

of which:

n Clearing

67,056

7.6%

55,237

8.1%

n Custody and Settlement

110,172

12.5%

49,594

7.3%

Euronext Technology Solutions & other

49,725

5.6%

37,805

5.6%

Other income

172

0.0%

220

0.0%

TOTAL REVENUE

884,318

679,108

ensuring Euronext’s market quality remains high, whilst balancing against yield management considerations. Further tools were developed to support market share such as dedicated fee schemes for non-member proprietary flows or retail flows. Offering of a Wide Range of Product Services and Platforms Euronext’s issuer base is diverse, comprising about 1,500 companies from within its home markets as well as elsewhere in Europe, internationally and span ten sectors by industry classification benchmark. Euronext’s corporate issuers differ in size and represent a combined market capitalisation of €4.5 trillion as of the end of December 2020 . The Company is the third-largest exchange traded funds (“ETF”) market in continental Europe by number of ETF trades, with 1,289 listed ETFs and an average daily trading value of approximately €500 million from January to December 2020. Euronext is the third-largest warrants and certificates market in Europe, with over 80,000 instruments at 31 December 2020, and in total nearly 500,000 products have been listed in 2020. Close to 9.5 million trades took place on those instruments in the twelve months ended 31 December 2020. Euronext is also a leading pan-European derivatives trading venue, with derivatives trading activities across financial and commodity derivative products. The Group has established the CAC 40 futures contract as the second most traded national index in Europe, with an equivalent of €5.7 billion in nominal value on an average daily basis.

Euronext’s businesses are characterised by recurring revenue streams which generate resilient and robust free cash flow (1) and allow Euronext to operate and invest in its business with flexibility. The Group’s market expertise and proven, multi-asset class technology infrastructure allow Euronext to launch new products without substantial additional capital expenditure. Further, the Company’s trading businesses do not expose it to credit risk or counterparty risk, which is borne by the counterparties to the trade and not by the markets. Euronext believes that its capital-light business and resilient free cash flow generation provide a potential for attractive return for shareholders while observing its regulatory capital requirements. Euronext’s cash equities markets have a diverse member base by geography and trading profile, making for a particularly rich and diversified order book. The combination of Euronext’s position as a leading pan-European trading venue, the quality of its markets and the expertise of the Company’s teams have enabled Euronext to increase its market share in cash equities trading of the securities listed on its markets from 60% in 2011 to more than 70% in 2020. The relative share of trading on competing platforms has been relatively stable over the past five years. The primary tool for supporting market share is the flagship Supplemental Liquidity Provision programme, which rewards liquidity providers for Liquidity and transparency to all market participants through regulated exchanges

(1) As defined in section 5.2 – Other Financial information.

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2020 UNIVERSAL REGISTRATION DOCUMENT