Euronext - 2020 Universal Registration Document

Euronext, a Sustainable Exchange

Euronext’s Five ESG Impact Areas and the Sustainable Development Goals

3.4 Euronext’s Five ESG Impact Areas

and the Sustainable Development Goals

Euronext has identified 11 ESG key issues, that were grouped into five material impact areas, consistent with the Euronext dual ESG ambition and those impact areas will also serve as the format of this chapter. We have indicated how we believe in each of these impact areas, we contribute to the identified SDG’s. We have also defined specific KPI’s by impact area and therefore do not refer anymore to SDG’s targets which may not be totally aligned with Euronext specific activities.

3.4.1

OUR MARKETS

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Key Issues: n organise a trusted, fair, transparent and efficient market, thereby enhancing access to capital; n promote and develop sustainable and innovative products and services with environmental (green and blue) or social added value.

Take urgent action to combat climate change and its impacts. As a stock exchange, Euronext can play a leading role in creating climate resilient markets by offering related financial products as well as by encouraging or requiring climate disclosure in this area.

Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation. As a stock exchange Euronext can contribute to the increase of access of small-scale industrial and other enterprises, to financial services.

3.4.1.1 Trusted, Fair and Orderly Markets As an operator of regulated markets, Euronext’s mission is to bring together buyers and sellers in trading venues that are transparent, efficient and reliable. To this end, Euronext: n adopts rules for each of its markets to ensure fair and orderly trading and efficient order execution; n sets up a framework to organise market monitoring by which it oversees trading in order to identify potential breaches of the rules, disorderly trading conditions or conduct that may involve market abuse; n offers state of the art, reliable, scalable and resilient technology with a large range of functionalities to market participants to allow trading even in times of high volumes. A particular attention is paid at cybersecurity and data protection; n reports breaches of rules or of legal obligations relating to market integrity to the competent authority. Market surveillance and monitoring are implemented through a two-step process consisting of real-time market surveillance and post-trade (i.e., “next day”) analysis of executed trades. Euronext ensuresmember compliance with its rules by conducting on-site investigations and inspections; n invests in technology aiming to improve its monitoring. Part of Euronext’s role in maintaining trusted, fair and orderly markets includes ensuring the security of thosemarkets. The growth in the digitalization of the finance industry over the last years has revolutionized the sector. This transformation means that an increasing number of financial services are becoming available to more and more people at an ever increasing pace. Euronext has grown and continues to thrive with these changes via increased storage and processing power enabling us to grow in complexity and size. With increased size and access comes potential liabilities, however Euronext through Infosec Management and Cybersecurity

governance has security controls in place in order to protect our markets from unwanted activity. On 19 October 2020, a technical issue on a middleware led to a decision to halt the market. Markets were reopened three hours later causing new issues and leading to a late closing of the market. As these issues were considered as improper trading conditions, the decision was made to cancel all trades performed after 17.30 CEST (17.28 CEST for Euronext Dublin), except for commodities as no impact for this asset class had been identified. This was communicated to members via the Market Status web page. Euronext performed the necessary actions to secure normal trading on the following day. A significant number of improvements are being designed and implemented to enhance prevention, detection and resolution of issues impacting the software. Euronext management has a strong commitment to upholding the security of our markets. Management oversees the information security/cybersecurity strategy and review process as well as annual plans, ensuring that the program stays current with the evolving environment and to avoid and treat potential negative impacts to Euronext. For further information of cybersecurity risks please refer to section 2.1 – Risk Factors of this Universal Registration Document. In order to assess its overseeing of the different markets it operates, Euronext has put in place several KPI’s. n Number of Serious Incidents (severity 1 and 2) on the regulated markets reported to the College of Regulators: at all times Euronext aims to provide the service, clients expect and need. For this, a Service Management Framework is in place between Euronext and each of its clients. This applies to all clients and for all Equities, exchange traded funds (“ETF”), Warrants & Certificates, Bonds, Derivatives, Commodities and Indices markets. The commitment is to keep a low number of incidents on a yearly basis.

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2020 UNIVERSAL REGISTRATION DOCUMENT