Euronext - 2020 Universal Registration Document

Risk Management & Control Structure 2 Mitigation Measures

EMPLOYEE RISK Euronext has an established and proactive Talent Acquisition and Talent Development policy in accordance with the strategic plan priorities as well as dedicated leadership programmes for the development of the managers and leaders of the organization. A Group training plan has also been rolled out to favour access to training on the core strategic skills to all employees throughmonthly sharing sessions and weeks dedicated to learning open to all staff. To help prevent the skills’ shortage, specifically in the information technology field, Euronext partners with engineering and IT schools to codevelop projects and improve its visibility as an attractive employer. Euronext has also developed an “Early Career” programme to recruit and train students and recent graduates with the latest technologies and critical skills. Moreover, Euronext carries out initiatives to favour the quality of life at work through with actions related to sport, nutrition and work- life balance, and reinforces its ESG commitment internally and externally. Please see section 3.4.3 – Our People for details regarding employee the multiple employee initiatives in place. REGULATORY AND LIABILITIES RISK In order to ensure that Euronext remains compliant will all laws and regulations it has taken a range of proactive preventative measures. For example, the Regulatory and Government affairs team of the Group monitors and informs the business about all relevant legislative developments, to ensure awareness by the business of all applicable rules and regulations. In addition, compliance policies and procedures are regularly reviewed to ensure that group entities and staff are compliant with applicable laws and regulations and uphold our corporate standards. Conduct risk is chiefly managed via a wide range of policies and procedures on employees and enforcing these through regular training and monitoring, while an employee Code of Business Conduct sets out the principles of behaviour required of all Company employees and this is provided to all new joiners. Legal functions have been established at various locations to ensure coverage of all Business Lines, including throughout all stages of business projects to comply with local laws and regulations. CAPITAL REQUIREMENTS RISK Euronext N.V. has a control and regulatory reporting framework in place to ensure that it maintains sufficient capital to meet the required capital levels.

confidentiality agreements and other contractual arrangements with its affiliates, customers, strategic investors and others in order to protect its own IP rights. To avoid infringement on any third-party IP rights, Euronext has processes in place supported by the compliance team, including staff training and awareness. Furthermore, Euronext conducts internal reviews of the use of third-party intellectual property in order to monitor compliance and to uphold its contractual commitments. MARKET RISK The Group entered into a swap strategy to hedge the interest rate risk related to the issuance of its €500 million April 2025 fixed-rate bond. However, the €750 million June 2029 fixed-rate bond is not hedged and the Group has an exposure to interest rate risk. Foreign currency risk is reduced because the operating revenue and expenses in the various subsidiaries of the Group are generally denominated in the functional currency of each relevant subsidiary. The Group may use derivative instruments or foreign denominated debt to manage its net investment exposures. The Group is primarily exposed to major currencies it is therefore, it is the Group’s policy to not hedge net investment exposure. However, on a case by case the Group may consider hedging net investments should special circumstances dictate. The Group would, by the same token, hedge transaction risk arising from cash flows paid or received in a currency different from the functional currency of the relevant contracting entity on a case by case basis. LIQUIDITY RISK The Group’s policy is to maintain sufficient cash, cash equivalents and available bank facilities to enable the Group to repay its financial liabilities at all maturities, irrespective of incoming cash flows generated by operational activities, excluding the related party loans granted by the Group’s subsidiaries to its Parent. These assets are managed as a global treasury portfolio invested in non-speculative financial instruments, readily convertible to cash to ensure a high level of available liquidity. CREDIT RISK The Group seeks to limit its exposure to credit risk by rigorously selecting the counterparties with which it executes agreements. Most customers of the Group are leading financial institutions that are highly rated. Investments of cash and cash equivalents in bank current accounts and money market instruments, such as short-term fixed and floating rate interest deposits, are governed by a strict group Treasury Investment Policy aimed at reducing credit risk. The Group continuously monitors the credit ratings of its counterparties and reviews individual counterparty limits on a regular basis In addition to the creditworthiness of counterparties, the Group’s Treasury Investment Policy also prescribes the diversification of counterparties (banks, financial institutions, funds) to avoid a concentration of risk. Derivatives are negotiated with leading high-grade banks.

OWNERSHIP AND INTELLECTUAL PROPERTY RISK

Euronext takes measures to prevent infringement of its own IP rights, in addition to measures to seek to ensure that it conducts its business activities in amanner which avoids inadvertently breaching third party-owned IP rights, including via a combination of trademark laws, copyright laws, trade secret protection, database laws,

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2020 UNIVERSAL REGISTRATION DOCUMENT