Euronext // 2021 Universal Registration Document

Risk management & Control Structure

Mitigation Measures

based on “extreme but plausible” scenarios encapsulating not only historical crises, but theoretical forward-looking scenarios ensure that the Default Funds are always sufficient to cover the most exposed banking groups. The CCP is compliant with the appropriate regulatory requirements regarding margin calculations, capital and default rules. The CCP has a specific Investment Policy, compliant with EMIR Regulation, dedicated to defining the scope and the limits of potential investments to ensure that risk taking is limited and controlled. The Group’s CCP manages its exposure to credit and concentration risks arising from such investments by maintaining a diversified portfolio of high-quality liquid investments. The CCP monitors on an permanent basis, its portfolio and its compliance with the Investment Policy. Non-Clearing The Group’s policy is to maintain sufficient cash, cash equivalents and available bank facilities to enable the Group to repay its financial liabilities at all maturities, irrespective of incoming cash flows generated by operational activities. These assets are managed as a global treasury portfolio invested in non-speculative financial instruments, readily convertible to cash to ensure a high level of available liquidity. The Group’s power market (Nord Pool) has committed risk capital, committed and uncommitted credit lines, trading is covered by collateral posted by members via pledged accounts, on-demand bank guarantees and letters of credit. Additionally the settlement cycle provides a buffer between inflow and outflows that further underpins liquidity. These measures have been established to help ensure that the entity has sufficient liquidity should it be required. Clearing The Group’s CCP has put in place regulatory compliant Liquidity Plan (regularly reviewed and approved by the CCP’s board) for day-to- day liquidity management and controls, including contingencies for stressed conditions. The Group’s CCP has multiple layers of defence against liquidity shortfalls including: minimum cash balances, access to contingent liquidity arrangements, and access to intraday central bank liquidity and secured and unsecured committed lines of credit. Capital Requirements Risk Euronext N.V. has a control and regulatory reporting framework with dedicated procedures aimed at ensuring the regular monitoring of the Capital Requirements for each of the regulated entities and that sufficient capital is constantly maintained within specific thresholds to meet the required levels under each of the regulation applicable to its subsidiaries. Liquidity Risk

Credit risk at the Group’s power market is reduced by the margin/ collateral posted by members which is intended to exceed their expected daily trading. The Group’s power market adjusts its risk model parameters to take into account high volatility and high prices to ensure sufficient levels of collateral in case of a member default. In certain circumstances, trading can theoretically exceed collateral posted, however the entity closely monitors all participants to prevent outstanding trading amounts in excess of collateral capacity. Clearing Risks associated with clearing operations are mitigated by a number of preventative controls and as well as measures that seek to reduce the impact should the risk materialise, the most important of which include: a. strict CCP membership rules including supervisory capital and operational capability; b. the maintenance of prudent levels of margin and default funds to cover exposures to participants. Members deposit margins are computed at least daily (including intraday calls), to cover the expected costs which the clearing service could incur in closing out open positions in a volatile market in the event of the member’s default; c. regular “Fire Drills” are carried out to test the operational soundness of the CCPs’ default management processes. Non-clearing The Group entered into a swap strategy to hedge the interest rate risk related to the issuance of its €500 million April 2025 fixed- rate bond, to take advantage of the low interest environment. The €750 million June 2029 and €1.8 billion (issued in three equal tranches to be repaid in May 2026, May 2031, May 2041) fixed-rate bonds are not hedged and therefore the Group has a refinancing exposure to interest rate risk should the Group refinance its bonds in a higher interest rate environment. The Group seeks to minimize capital erosion by making short term investments in high quality money market instruments. Foreign currency risk is reduced because the operating revenue and expenses in the various subsidiaries of the Group are generally denominated in the functional currency of each relevant subsidiary. The Group may use derivative instruments or foreign denominated debt to manage its net investment exposures. The Group is primarily exposed to major currencies, for which it is the Group’s policy not to hedge net investment exposures or cash flows paid or received at a currency different from the functional currency of the entity in question. While not typical, the Group may consider, on a case by case, hedging net investments and cash flows should circumstances dictate. Clearing Margins and default funds collected from Clearing Members are sized to protect against latent market risk. The adequacy of margins is daily (also intraday) monitored and adjusted. Daily stress test Market Risk

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2021 UNIVERSAL REGISTRATION DOCUMENT