Euronext // 2021 Universal Registration Document

Risk management & Control Structure 2 Risk Factors

MARKET RISK

Risk Identification and Description

Potential Impact on the Group

Non-Clearing Market risk arises from changes in interest rates, foreign-exchange risk and other market prices. The Group is exposed to interest rate risk on both fixed-rate bond and floating rate financial assets and liabilities, including the fixed-rate bonds and the Revolving Credit Facility. The Group is exposed to foreign currency risk arising from the translation of assets and liabilities of subsidiaries with functional currencies other than the Euro. The Group is exposed to foreign exchange risk primarily in NOK, USD, DKK and GBP. Fluctuations may affect the Group’s profit margins and value of assets and liabilities in non-euro denominated currencies when translated into Euros. Please refer to Note 37 in the Notes to the Financial Statements for details on sensitivity analyses performed by Group Treasury. Clearing The CCP assumes the counterparty risk for all cleared transactions. This is a latent market risk as it only exists in the event of a clearing member default. In addition the risk is higher if market conditions are unfavourable at the time of default. Regarding the CCP Investment Risk, the Group’s CCP makes investments in high-quality liquid sovereign bonds. The successful operation of these investment activities is contingent on general market conditions and there is no guarantee that such investments may be exempt frommarket unexpected losses (that could materialise in case of default of a Sovereign Country or of a number of Clearing members).

Non-Clearing Unfavourable movements in interest rates could negatively impact the net financial income of the Group by increasing the cost of borrowing, refinancing, or reducing interest income. Fluctuations in non-Euro currencies particularly with respect to the NOK, USD and GBP may impact the income generated and the (regulatory) equity in these currencies when translated in EUR in the Consolidated Financial Statements. Although the Group seeks to limit its exposure to market risks, it cannot eliminate them. As such, adverse changes in market conditions, on both interest rate and foreign currency fluctuations may negatively impact the net financial income of the Group. Clearing Should a default of a CCP clearing member not be manageable within the resources available, the CCP’s (and by extension the Group’s) reputation and financial resources may be adversely impacted. Unfavorable movements in interest rates could negatively impact the net financial income of the Group by reducing interest income.

LIQUIDITY RISK

Risk Identification and Description

Potential Impact on the Group

Non-Clearing The Group would be exposed to a liquidity risk if its short-term liabilities become higher than its cash, cash equivalents, short-term financial investments and available bank facilities and in the case where the Group is not able to refinance this liquidity deficit, for example, through new banking lines. The Group’s power market (Nord Pool) is exposed to liquidity risk should there be a default of a significant participant, or should there be a delay in receiving funds due following the default. Clearing The Group’s CCP is exposed to the risk of incapacity to meet cash obligations towards its Clearing Members both in standard conditions and when managing a default.

Non-Clearing In the event that the Group fails to maintain a level of liquidity sufficient to cover its short term obligations, it will increase its default risk and potentially damage its creditworthiness and subsequently its reputation. Depending on the size of the default of the Group’s power market’s (Nord Pool) participants, the Group may be asked to fill liquidity gap. Clearing The Group’s CCP collects clearing members’ margin and default funds contributions in cash and/or in highly liquid securities. To maintain sufficient ongoing liquidity and immediate access to funds, the Group’s CCP deposits the cash received in highly liquid and secure investments, such as Central Bank accounts, sovereign bonds and reverse repos, as mandated under EMIR. In the event that the CCP fails to have sufficient liquidity to fund its obligations the CCP may have significant reputational and regulatory impacts which may further extend to the Group.

CAPITAL REQUIREMENT RISK

Risk Identification and Description

Potential Impact on the Group

Euronext N.V. as well as certain local entities, operate under strict regulatory requirements, which may include the maintenance of minimum capital requirements. Management of regulatory capital is conducted in compliance with applicable regulation. Capital Requirements Regulation, MiFID II, Market Infrastructure Regulation (“EMIR”), as well respectively applicable national requirements. There is a risk that Euronext N.V. or one of its regulated entities fails to comply with the applicated regulation and associated requirements for minimum capital held.

In the event that Euronext N.V. or its regulated subsidiaries do not have sufficient regulatory capital, its operating licences may be jeopardised, which would affect the Group’s capacity to operate the financial infrastructure, and negatively impacts, revenues, brand and reputation.

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2021 UNIVERSAL REGISTRATION DOCUMENT