Euronext - 2020 Universal Registration Document

Risk Management & Control Structure 2 Risk Factors

GLOBAL AND REGIONAL ECONOMY RISK

Risk Identification and Description

Potential Impact on the Group

The Group is exposed to global and regional economic, political and geopolitical market conditions, macroeconomic changes in global or regional demand or supply shifts and legislative and regulatory changes across a number of jurisdictions, geographies and currencies, all of which can affect the level of global and local financial activity. Several macroeconomic factors, including the global pandemic, threaten global economic growth, generating risks regarding economic activity and may discourage investment. General economic conditions affect financial and securitiesmarkets in a number of ways, from determining availability of capital, to influencing investor confidence. Adverse changes in the economy or the outlook for the financial and securities industry can have a negative impact on the Group’s revenues through declines in trading volumes, new listings, clearing and settlement volumes and demand for market data. GDP in the euro area, where the Group’s activities are concentrated, is projected to grow only moderately over the coming two years. With regards to Covid-19, growth is expected to be hampered should the need for strict containment measures continue or reoccur in relation to the pandemic, which may result in increased uncertainty and depressed investor confidence. General economic conditions affect financial and securities markets in a number of ways, from determining availability of capital to influencing investor confidence, which in turn impact the Group’s trading volumes and results. The industry in which the Group operates is highly competitive, and therefore the Group faces significant competition for the products and services that it offers. In particular, the Group’s trading business is facing market fragmentation and increased competition, including from exchanges, systematic internalisers and new tradingmodels, and its listing business is facing competition from incumbent competitors as well as private equity funding. Competition has been intensified by trends including: (1) technological innovation, in particular given the usage by the Group of complex information systems; (2) the globalisation of capital markets, which has resulted in greater mobility of capital, greater international participation in local regions andmore competition among different geographical areas; (3) the continued growth and expansion of other market participants resulting in stronger global competitors; and (4) the growing appeal of private equity and the increased competition among exchanges. Such competition may intensify further should certain rules, regulations and circumstances change. The Group competeswith othermarket participants in a variety of ways, including in relation to the: (1) quality and speed of trade execution, functionality, data, index services; (2) ease of use and performance of trading systems; (3) range of products and services offered to customers, including trading participants and listed companies, including through the development of new and enhanced propositions; and (4) adoption of technological advancements. Further, competitors continue to compete aggressively on price across each of the Group’s product areas including listings, trade execution, post-trade services and technology, as market conditions evolve and become ever more competitive. This trend is expected to continue in the future. COMPETITION ON CAPITAL MARKETS RISK Risk Identification and Description

While volatility may drive trading volumes on trading venues, the recession and slow GDP growth may be reflected in absolute issuance and trading volumes and negatively impact revenue and growth target of the Group. Declines in volumes may also impact the Group’s market share or pricing structures. Adverse changes in the economy or the outlook for the financial and securities industry can have a negative impact on the Combined Group’s revenues beyond declines in trading volumes, including by impacting new listings, clearing and settlement volumes and demand for market data. If levels of activity on the Group’s exchanges are adversely affected by any of the factors described above or other factors beyond the Group’s control, this could have a material adverse effect on the Group’s business, results of operations, financial condition and prospects.

Potential Impact on the Group

If the Group is unable to adapt to continued changing market pressures and evolving customer demands or maintain its industry position given the intense competition, or is forced to reduce pricing, revenues and profit margins could decline. The success of the Group’s business depends on its ability to attract andmaintain order flow, both in absolute terms and relative to other market centres, and the loss of order flow would negatively impact the Group’s sources of liquidity and its market position, which could have a material adverse effect on the Group’s business, results of operations, financial condition and prospects.

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2020 UNIVERSAL REGISTRATION DOCUMENT