Euronext // 2021 Universal Registration Document

Operating and Financial Review 7 Overview

Liquidity risk – CCP clearing business The Group’s CCP must maintain a level of liquidity (consistent with regulatory requirements) to ensure the smooth operation of its respective markets and to maintain operations in the event of a single or multiple market stress event or member failure. This includes the potential requirement to liquidate the position of a clearing member under a default scenario including covering the associated losses and the settlement obligations of the defaulting member. The Group’s CCP maintains sufficient cash and cash equivalents and has access to intraday central bank refinancing (collateralized with ECB eligible bonds) along with commercial bank credit lines to meet in a timely manner its payment obligations. Revised regulations requires the CCP to ensure that appropriate levels of back-up liquidity are in place to underpin the dynamics of a largely secured cash investment requirement, ensuring that the maximum potential outflow under extreme market conditions is covered (see credit risk section). The Group’s CCP monitors its

liquidity needs daily under normal and stressed market conditions. Where possible, the Group employs guaranteed delivery versus payment settlement techniques and manages CCP margin and default fund flows through central bank or long-established, bespoke commercial bank settlement mechanisms. Monies due from clearing members remain the clearing members’ liability if the payment agent is unable to effect the appropriate transfer. In addition, the Group’s CCP maintains operational facilities with commercial banks to manage intraday and overnight liquidity (see section 7.1.11 - Facilities Agreements and Bonds). In line with the investment policy and the regulatory requirements, the Group’s CCP has partially invested the default funds and margin in Government bonds, with an average maturity of around 12months as per 31 December 2021. Even though these financial assets are generally held to maturity, a forced liquidation of the investment portfolio could lead to losses and lack of required liquidity.

Maturity between 1 and 2 years

Maturity between 2 and 3 years

Maturity < 1 year

Total

In thousands of euros

2021 Investment portfolio

2 721 945

533 790

1 204 674

4 460 408

The table below summarises the maturity profile of the Group’s financial liabilities as of 31 December 2021 and 2020, based on contractual undiscounted payments, including principal – and interest amounts, expected throughout the life of the obligations:

Maturity between 1 and 5 years

Maturity < 1 year

Maturity > 5 years

Total

In thousands of euros

2021 Trade and other payables

439,856

— —

— —

439,856

Other current financial liabilities

—

—

Borrowings

27,688 20,993

1,205,750

2,132,813

3,366,251

Lease liabilities

44,634

6,058

71,685

CCP clearing member liabilities

137,732,403

—

—

137,732,403

2020 Trade and other payables

185,837

— —

— —

185,837

Other current financial liabilities

521

521

Borrowings

13,548 15,900

553,750

783,750

1,351,048

Lease liabilities

33,468

1,583

50,951

CCP clearing member liabilities

—

—

—

—

Currency Risk The Group’s net assets are exposed to the foreign currency risk arising from the translation of assets and liabilities of subsidiaries with functional currencies other than the Euro. The following table summarises the assets and liabilities recorded in GBP functional currency and the related impact of a 10% in/decrease in the currency exchange rate on balance sheet as of 31 December 2021 and 2020:

2021

2020

In thousands

Assets

£ 85,603

£ 74,334 £ (8,758) £ 65,576 £ 38,290

Liabilities

£ (11,243) £ 74,360 £ 74,360

Net currency position

Net currency position after hedge

Absolute impact on equity of 10% in /decrease in the currency exchange rate

€8,838

€4,276

204

2021 UNIVERSAL REGISTRATION DOCUMENT