Euronext // 2021 Universal Registration Document

Presentation of the Group

Description of the Business

The following table sets out information relating to the sources of total revenue for the year ended 31 December 2021 and for the year ended 31 December 2020:

1

Year ended 31 December 2021

Year ended 31 December 2020

Revenue % of total revenues

Revenue % of total revenues

In thousands of euros

Listing

189,689

14.6%

145,473

16.5%

Trading revenue

465,265

35.8%

365,100

41.3%

of which:

n Cash trading

293,684

22.6%

259,606

29.4%

n Derivatives trading

52,458

4.0%

49,206

5.6%

n Fixed income trading

65,783

5.1%

2,620

0.3%

n Spot FX trading

23,479

1.8%

26,352

3.0%

n Power trading

29,861

2.3%

27,316

3.1%

Investor services

8,894

0.7%

7,584

0.9%

Advanced Data Services

183,607

14.1%

139,036

15.7%

Post-trade

320,570

24.7%

177,228

20.0%

of which:

n Clearing

101,376

7.8%

67,056

7.6%

n Custody and Settlement

219,194

16.9%

110,172

12.5%

Euronext Technology Solutions & other

85,498

6.6%

49,725

5.6%

Net treasury income through CCP business

35,432

2.7%

—

—%

Other income

9,700

0.7%

172

—%

TOTAL REVENUE AND INCOME

1,298,655

884,318

ensuring Euronext’s market quality remains high, whilst balancing against yield management considerations. Further tools have been developed to support market share such as dedicated fee schemes for non-member proprietary flows or retail flows. Euronext continues to provide excellent market quality and best execution principles to retail investors through its functionality Best of Book. Optiq® Euronext has upgraded its core trading platform with Optiq®, an enhanced, multi-market trading platform, providing customers with maximum flexibility, simplified and harmonised messaging as well as high performance and stability. Optiq® combines the latest technologies with in-house expertise. Optiq® was rolled out across the Euronext markets to replace the Euronext Universal Trading Platform (UTP) in a phased implementation process. Market data has been managed through Optiq® for both cash and derivatives since July 2017, already delivering massive benefits to the clients’ community. In April and June 2018, the Optiq® trading engine went live for fixed income and cash markets, with impressive stability and performance. Euronext Dublin markets migrated to Optiq® in 2019. In December 2019, Euronext completed the successful completion of the roll-out of its Derivatives market to Optiq®. Oslo Børs markets migrated to Optiq® in 2020, just 17 months after the closing of the acquisition. As part of the integration of the Borsa Italiana Group, Italian cash equities and derivatives markets are expected to migrate to Optiq® in 2023.

Euronext’s businesses are characterised by recurring revenue streams which generate resilient and robust free cash flow (1) and allow Euronext to operate and invest in its business with flexibility. The Group’s market expertise and proven, multi-asset class technology infrastructure allow Euronext to launch new products without substantial additional capital expenditure. Further, the Company’s trading businesses do not expose it to credit risk or counterparty risk, which is borne by the counterparties to the trade and not by the markets. Euronext believes that its capital- light business and resilient free cash flow generation provide the potential for attractive return for shareholders while observing its regulatory capital requirements. Euronext’s cash equities markets have a diverse member base by geography and trading profile, making for a particularly rich and diversified order book. The combination of Euronext’s position as a leading pan-European trading venue, the quality of its markets and the expertise of the Company’s teams has enabled Euronext to increase its market share in cash equities trading of the securities listed on its markets from 60% in 2011 to more than 70% since 2020. The relative share of trading on competing platforms has been relatively stable over the past five years. The primary tool for supporting market share is the flagship Supplemental Liquidity Provision programme, which rewards liquidity providers for Liquidity and Transparency to all Market Participants through Regulated Exchanges

(1) As defined in Section 5.2 – Other Financial information.

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2021 UNIVERSAL REGISTRATION DOCUMENT