Euronext - 2020 Universal Registration Document

Presentation of the Group

Description of the Business

Custody & Settlement

The solutions and services offered use Optiq® and other applications developed by Euronext or licensed from third-parties. Optiq® entered production with Euronext in mid-2018 with the Derivative markets successfully migrated in late 2019 and has already been licensed to five other venue operators, either as a deployed solution or under an Optiq® as a Service arrangement. Euronext continues to provide software support and maintenance services for the legacy trading platforms, Euronext UTP and NSC®. Euronext has a perpetual, royalty-free license from ICE to use, modify and sub-license Euronext UTP and NSC® (see section 7.2 Material contracts and related party transactions) . At the end of 2020, two Exchange clients remained deployed on Euronext UTP and both have been offered options for migrating to Optiq® ahead of termination of Euronext UTP maintenance. Support for the previous generation trading platform, NSC®, will cease in 2021 once all clients using NSC® have been migrated to Optiq®. This will further simplify Euronext’s technology operation and reduce expenses. Optiq® enables the technologies business to be more competitive by offering solutions that are faster, more resilient and cheaper to operate. It has been designed for high-volume markets and so will meet the throughput and resilience needs of most global exchanges. As a result, Euronext Technology Solutions priorities for the future Optiq® roadmap will include integrating new functions and asset classes to increase the flexibility, configurability and extensibility offered to clients. Most Technology Solutions provided to clients include software for reference data management, price calculation and market control functions. The high level of commonality between exchange operations around the world means that many of these solutions can be delivered to clients with little or no client-specific customisation. In some cases, client requirements can be met by simple configuration changes and in others, only minor software modifications are required. Whichever approach is taken, the rights to new platform capabilities remain with Euronext and are incorporated into the core product for the benefit of all users (including Euronext itself). This mutually beneficial, user-community approach means that Euronext can maintain an industry leading platform with lower expenses than would otherwise be the case. Where Euronext does not offer commercial in-house software for a function required by a client, third-party software can easily be integrated with Optiq®. This approach is used for the MAR surveillance service offered to MTF operators which provides monitoring of compliance with the Market Abuse Regulation as a remotely delivered service. This service enables clients to outsource their MAR monitoring operations and take advantage of the investments in staff and processes made by Euronext for its own markets. Optiq® will facilitate the development of more such services, specifically those performing analytic and regulatory processing of the large volumes of trading data generated by electronic exchanges. Demand for these applications is expected to grow as the scope and rigour of regulatory monitoring requirements increase. Historically, revenue from the Euronext Technology Solutions & other business came from software license and maintenance fees. However, Euronext’s ability to configure its technology for a wide

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Acquisition of VP Securities Euronext acquired VP Securities in August 2020. VP Securities is a CSD established in Denmark and plays a critical role on the Danish and Nordic capital markets by providing issuance, custody and settlement services across asset classes, as well as a wide range of added-value services to market participants. The value of assets under custody at VP Securities represents 1.5 trillion EUR at end 2020, and the CSD processed 23 million of settlement instructions over the year. This acquisition brings further scale to Euronext CSD’s business, and reinforces the Group’s ability to support the development of Nordic capital markets. Entry into Force of the Central Securities Depositories Act in Norway The Norwegian Legal Act implementing CSDR (The New Central Securities Depositories Act) in Norway enters into force on 1 st January 2020. Accordingly, VPS has applied for a CSD authorisation under CSDR in 2020. The Norwegian Ministry of Finance adopted transitional provisions in 2019 clarifying that Euronext VPS’ current authorization will remain in force and that the current Securities Register Act will continue to apply to Euronext VPS’ business and to account operators, settlement participants and holders of nominee account in Euronext VPS until the authorisation process is completed. Euronext VPS has an ongoing project to implement the new rules and file for authorization in close cooperation with Euronext VPS’ Market Advisory Group, Client Reference groups and the Norwegian FSA. Euronext Technology Solutions & other comprises of Euronext’s commercial Technology Solutions and services business. Euronext offers custom solutions and cost-effective managed services to exchanges and venue operators who require complex, functional capabilities and low latency processing across multiple-asset classes surrounded by exchange grade business services used to operating within highly regulated environments. Euronext Technology Solutions also provides commercial services based on its Regulatory reporting services, registered as both an Approved Publication Arrangement (APA) and an Approved Reporting Mechanism (ARM) with the AMF. The services provide reporting facilities to investment firms. The technologies & other business benefits from the technology developments made by Euronext for its own markets and, in return, contributes recurring revenue that is noncyclic and not trading related. Operating as a technology vendor also gives Euronext an opportunity to benchmark both its technology and support services against other vendors and ensure that it maintains its position at the forefront of the industry. 1.3.9 EURONEXT TECHNOLOGY SOLUTIONS & OTHER 1.3.9.1 Euronext Technology Solutions & Other − Products and Services

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2020 UNIVERSAL REGISTRATION DOCUMENT