Euronext // 2021 Universal Registration Document

Other Information 9

MEASUREMENT OF CLEARING ASSETS, LIABILITIES AND REVENUES Risk

As part of the acquisitions in Italy, Euronext N.V. has become owner of the central counter party clearing activities of Cassa di Compensazione e Garanzia S.p.A. (CC&G), based in Rome. These activities result in short term assets and liabilities of in total €137.7 billion at 31 December 2021, which comprise clearing member receivables and payables, as well as debt instruments and repurchase agreements. As disclosed in note 35 of the financial statements most of these balances are accounted for at amortized costs, while the investments of participants liquidity are measured at fair value through other comprehensive income. Certain of the clearing assets and liabilities are presented on a net basis on the balance sheet where the EU-IFRS netting criteria are met. All non- commission income and expense is presented as net treasury income on the face of the income statement and disclosed on a gross basis in note 8.2 of the financial statements CC&G has partially invested the members liquidity in sovereign debt securities. The related liquidity, interest rate and credit risks have been disclosed in note 37 of the financial statements. Given the magnitude of the amounts involved, the specific accounting rules on measurement and the distinctive risks related to the clearing activities, as well as the first time disclosure of these items in the 2021 financial statements, we consider this as a key audit matter. Our audit approach Our audit procedures included, amongst others, evaluating the appropriateness of Euronext N.V.’s accounting policies regarding the clearing activities in accordance with IFRS 9 “Financial instruments” and the offsetting requirements in IAS 32. Also we gained an understanding of the clearing transactions of CC&G and evaluated the design and tested operating effectiveness of internal controls across the processes relevant to the recording of clearing assets, liabilities, and revenues. Furthermore, we reviewed the particpant collateral procedures, the risk management processes and the model governance in place, and we performed substantive procedures to test data accuracy and completeness, key reconciliations and the application of bilateral counterparty. Finally, we evaluated the completeness and accuracy of the disclosures relating to the clearing activities, to evaluate compliance with disclosure requirements included in EU-IFRS, as well as industry practices. In particularly we evaluated that these disclosures adequately convey the risks related to the clearing assets and liabilities. Based on our procedures performed we consider that the clearing assets and liabilities, as well as the presentation of the results from those activities, to be reasonable and in compliance with EU-IFRS. Key observations Euronext N.V. holds a direct and an indirect minority interest in Euroclear S.A. As described in note 20 to the financial statements this investment is classified as a financial asset at fair value through other comprehensive income. As Euroclear is a non-listed company, Euronext N.V. developed an internal model to estimate the fair value, as disclosed in note 35 to the financial statements. Since 2018, a weighted approach is applied which is based on the return on equity, expected dividend growth rate (non-observable parameters) and cost of capital of comparable regulated entities and market observable transactions less a discount for illiquidity. In 2021, Euronext N.V. revalued its interest by €3 million, increasing the fair value to €207 million. The determination of the fair value of the interest in Euroclear involves significant management judgment and assumptions as certain unobservable inputs are used. The use of different valuation techniques and assumptions could produce significantly different estimate of fair value. Given the inherent subjectivity we determined this a key matter for our audit. Our audit approach Our audit procedures comprised, amongst others, evaluating the appropriateness of Euronext N.V.’s accounting policies related to the fair valuation of an interest in a non-listed company according to IFRS 9 “Financial Instruments” and IFRS13 “Fair value measurement”. They included an evaluation of the methodology and the appropriateness of the valuation model for consistency and an assessment against generally accepted market practice and inputs used to value the investments. Further, we used our valuation specialists to independently evaluate the valuation performed. As part of these audit procedures we tested the reasonability of key inputs used in the valuation such as the market observable transfers, and the non-observable parameters, the return on equity and expected dividend growth rates. Finally, we evaluated the adequacy of the disclosures related to financial assets at fair value through other comprehensive income. In particular we evaluated that disclosures adequately convey the degree of estimation uncertainty and the range of possible outcomes. Based on our procedures performed we consider the measurement of and disclosures on the financial assets at fair value through other comprehensive income to be reasonable and in compliance with EU-IFRS. Key observations MEASUREMENT OF FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME Risk

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2021 UNIVERSAL REGISTRATION DOCUMENT