Euronext // 2021 Universal Registration Document

Financial Statements

Notes to the Consolidated Financial Statements

Interest rate risk – CCP clearing business The Group’s CCP faces interest rate exposure through the impact of changes in the reference rates used to calculate member liabilities versus the yields achieved through their predominantly secured investment activities. In the Group’s CCP, interest bearing assets are generally invested in secured instruments or structures and for a longer term than interest bearing liabilities, whose interest rate is reset daily. This makes investment revenue vulnerable to volatility in overnight rates and shifts in spreads between overnight and term rates. On daily basis the interest rate risk associated to investments is monitored via capital requirements.

The Group’s CCP has an investment policy, mitigating market risks. The Group’s CCP investments have an average duration of around one year and are generally held until maturity. Losses will not materialise unless the investment portfolio is liquidated before maturity or in an event of portfolio rebalancing before maturity. In case of a forced liquidation of the CCP’s financial investment portfolio before maturity to provide necessary liquidity, the CCP may face higher interest rate exposure on its financial investment portfolio. The interest rate exposure of the investment portfolio is predominantly at fixed rates (only a negligible part is at floating rates) at the amounts and maturities as disclosed in Note 37.1. As per 31 December 2021, an increase/decrease of the rate by 100 basis points would have an increasing/decreasing impact on the investment portfolio market value of €47 million or 1.03%.

37.3 Currency risk Foreign currency translation 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 respectively GBP, USD and NOK functional currency and the related impact of a 10% in/decrease in the currency exchange rate on balance sheet:

2021

2020

In thousands

Assets

£ 85,603 £ (11,243) £ 74,360 £ 74,360

£ 74,334 £ (8,758) £ 65,576 £ 38,290

Liabilities

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

2021

2020

In thousands

Assets

$194,921 $(9,506) $185,415 €16,307

$205,286 $(13,766) $191,520 €15,666

Liabilities

Net currency position

ABSOLUTE IMPACT ON EQUITY OF 10% IN/DECREASE IN THE CURRENCY EXCHANGE RATE

2021

2020

In thousands

Assets

kr 11,920,093 kr (3,599,549) kr 8,320,544

kr 9,362,231 kr (1,900,044) kr 7,462,187

Liabilities

Net currency position

ABSOLUTE IMPACT ON EQUITY OF 10% IN/DECREASE IN THE CURRENCY EXCHANGE RATE

€83,003

€71,089

8

At 31 December 2020, the Group had a EUR/GBP foreign exchange contract designated as a hedge of the net investment in the acquired subsidiary Commcise Software Ltd, due to the uncertainty that was looming in regard to the negative impact of Brexit on GBP. In 2021, this foreign exchange contract expired and was not extended by the Group. As such, the Group has no hedge of net investment in place at 31 December 2021 (see Note 23). 37.4 Credit risk The Group is exposed to credit risk in the event of a counterparty’s default. The Group is exposed to credit risk from its operating activities (primarily trade receivables), from its financing activities and from the investment of its cash and cash equivalents and short-term financial investments. The Group limits its exposure to credit risk by rigorously selecting the counterparties with

Most operating revenue and expenses in the various subsidiaries of the Group are denominated in the functional currency of each relevant subsidiary. The Group’s consolidated income statement is exposed to foreign currency risk arising from receivables and payables denominated in currencies different from the functional currency of the related entity. The Group’s general policy is not to hedge foreign exchange risk related to its net investments in foreign currency. However, the Group may use derivatives instruments designated as hedge of net investment or foreign denominated debt to manage its net Investment exposures. The decision to hedge the exposure is considered on a case by case basis since the Group is generally exposed to major, well established and liquid currencies. 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 Group contracting entity on a case by case basis.

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2021 UNIVERSAL REGISTRATION DOCUMENT