Euronext - 2020 Universal Registration Document

Presentation of the Group 1 Description of the Business

To that extend, a new pricing strategy has been developed called the Local Fee Scheme.

The table below shows the proportion of Euronext’s customer base by geographic origin (location of worldwide headquarters) using derivatives listed on its markets for the last twelve months ended 31 December 2020.

Fixed Income Trading A new pilot scheme (Liquidity Distributor) has been designed for specific members to publish marked up/aggregated liquidity of Euronext order book on their trading systems and distribution networks in order to increase matching opportunities on Euronext markets; this scheme was green-lighted by Euronext’s College of regulators and was successfully implemented in May 2020 with a pilot member that has been ranking amongst our top five members since then thanks to this scheme. In the post-MiFID II environment, Fixed Income Regulated Markets remain active despite the low interest rate environment and the launch of the Pandemic Emergency Purchase Program drying up liquidity on secondary markets. Derivatives Trading On the financial derivatives markets, Euronext continued to reposition and expand its franchise. New products launched in 2020 included: n eight Individual Equity Options (including five Spotlight Option classes); n nine Single Stock Dividend Futures (SSDFs) and seven Single Stock Futures (SSFs); n Index Futures on Euronext Eurozone ESG Large 80 Index and ISEQ 20 Index. As the Covid-19 crisis has caused strong uncertainty on the dividend distribution, Euronext was the only Exchange able to provide an adapted hedging solutions thanks to the SSDFs with shorter maturities across a pan-European scope of contracts, helping market participants to adapt and fine tune their hedging. During 2020, the new Market Making scheme which was rolled out at Optiq go-live, has brought improved on-screen quality notably on the Equity Options market. In December 2020, Oslo derivatives market has been successfully migrated to Optiq. Thanks to these developments, Euronext Derivatives have been awarded FOW International European Exchange and has also received the Most Innovative Contract of the year of its developments on the single stock futures and single stock dividend futures in 2020. POWER TRADING Through Nord Pool, in which it owns 66%, Euronext operates power markets. Nord Pool operates the leading power market in Europe and operates across 16 European countries including the Nordics, Baltics, the UK and Ireland in addition to France, Germany, Austria, Belgium, the Netherlands, Luxembourg and Poland, while also servicing power markets in Croatia and Bulgaria. Nord Pool operates the physical power market, a short-term market where financial settlement takes place at the same time as physical delivery, a day after the trade has been made. As the central counterpart for all trades, Nord Pool ensures that all members are 1.3.5

Norway 1%

Sweden 1%

Germany 1%

Belgium 0%

Italy 0%

Portugal 0% Denmark 0%

Ireland 6%

Switzerland 8%

Others 0%

USA 27%

United Kingdom 13%

France 17%

The Netherlands 26%

FX Trading In 2020, Euronext FX – Euronext’s Electronic Communication Network (ECN) for spot Foreign Exchange (FX), precious metals, and its ECN for non-deliverable forwards (NDFs) through Euronext FX’s Euronext Markets Singapore subsidiary – continued to grow its business successfully despite the unprecedented circumstances of the pandemic. Revenues, volumes and market share increased as a result of continued growth in client acquisition and effective liquidity management for existing clients. Euronext FX also expanded its product suite, with Euronext Markets Singapore’s launch of NDFs in the third quarter of 2020, building on its Singapore FX matching engine. That fourthmatching engine went live the year before, adding to the platform’s global capabilities – which already operates in New York, London and Tokyo. Euronext FX also continues to develop and expand its market data offerings. In 2021, Euronext FX remains committed to generating additional revenue, enhancing product breadth and increasing client footprint.

1.3.4.2 Cash, Derivatives and Spot FX Markets − Recent Developments

Cash Trading

Advanced Pricing Strategy During 2020, Euronext continued to optimize and adjust its pricing strategy on several key components of the tariff structure. The flagship liquidity provision program (Supplemental Liquidity Program) continued to help in delivering a strong performance in the quality of Euronext Cash market while delivering substantial yield. Furthermore, as part of the ’Let’s Grow Together 2022’ strategic plan, Euronext committed to ’capitalize on Federal model’, incentivizing ’natural’ flow from local and regional brokers and buy- side in each market.

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2020 UNIVERSAL REGISTRATION DOCUMENT