EURONEXT_Registration_Document_2017

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PRESENTATION OF THE GROUP

Description of the Business

service offered to MTF and SI operators which provides monitoring of compliance with the Market Abuse regulation as a remotely delivered service. This service enables clients to outsource their MAR monitoring operations and take advantage of the investments in staff and processes made by Euronext for its own markets. Optiq ® will facilitate the development of more such services, specifically those performing analytic and regulatory processing of the large volumes of trading data generated by electronic exchanges. Demand for these applications is expected to grow as the scope and rigour of regulatory monitoring requirements increase. Historically, revenue from the market solutions & other business came from software license and maintenance fees. However, Euronext’s ability to configure its technology for a wide range of market models means that the same Optiq ® software can be offered in the form of a managed service. Exchanges and venue operators can take advantage of fully-hosted trading and clearing platforms without investing in data center or network infrastructure. With banks and financial intermediaries increasingly seeing migration to cloud and software-as-a-service as solutions to the competing pressures of cost-reduction and regulatory complexity, Euronext’s experience as a service provider is receiving renewed interest. Euronext’s MiFID II compliant MTF and SI services build on Euronext’s own software, processes and infrastructure and offer clients an effective way to reduce costs without increasing regulatory risk. The market solutions & other business also receives revenue for network connectivity and server colocation under a revenue sharing agreement with ICE. This agreement enables Euronext to benefit from service sales to clients who connect to its markets via the ICE SFTI ® network or who take colocation space in the ICE data centers that house Euronext’s trading platforms. For more information on SFTI ® and colocation (see section 5.2 “Material contracts and related party transactions” ). By combining the software, infrastructure and technology developed for its internal markets with the expertise of its technology staff and market managers, Euronext is able to offer a unique technology service to exchanges and venue operators around the world Following the opening of the IT centre of excellence in Porto, Euronext has built a specialist team of analysts, developers and engineers to support the commercial technology business. In 2017 this team successfully delivered a complex MiFID II upgrade for a Euronext UTP client. This major release was delivered on-time and enabled the client to complete a smooth transition to the new regulatory regime. The Porto team are now engaged on projects to deliver Optiq ® to the five commercial clients scheduled to go-live on the new platform in 2018. In October 2017, Euronext entered into an IT Commercial Cooperation Framework Agreement with a global system integrator. This agreement provides a framework under which its partner will undertake: i) business development, sales and delivery support to promote the use of Optiq ® around the world and ii) maintenance and delivery activities to support Euronext’s legacy software. Activities already completed under this agreement included a technical upgrade to Euronext UTP and the successful on-boarding of NSC ® maintenance activities. 1.3.7.2 Market solutions & other – Recent Developments

opportunity to compare its technology against other vendors and ensure that it maintains its position at the forefront of the industry. The solutions and services offered use Optiq ® and other applications developed by Euronext or licensed from third-parties. Optiq ® will enter into production with Euronext in 2018 and has already been licensed to five international exchanges. This rapid take-up by the exchange industry demonstrates the attractiveness of the reliability, flexibility and cost of ownership benefits that Optiq ® provides and reflects the insights that Euronext, as a leading market operator itself, can apply in the design of new trading technology. Trading platform software is a global business and so, to drive further sales outside of Europe, Euronext has appointed a global systems integrator as its sales and delivery partner for Optiq®. The global sales capabilities of this partner will enable Euronext to promote and deliver Optiq® cost effectively to exchanges and venue operators around the world. Euronext continues to provide software support and maintenance services for the legacy trading platforms, Euronext UTP and NSC ® . Euronext has a perpetual, royalty-free license from ICE to use, modify and sub-license Euronext UTP and NSC ® (see section 5.2 “Material contracts and related party transactions” ). In 2018, two clients remain on Euronext UTP and both will be offered options for migrating to Optiq ® ahead of termination of Euronext UTP maintenance. Support for the previous generation trading platform, NSC ® , will cease at the end of 2018 once all clients using NSC ® have been migrated to Optiq ® . This will further simplify Euronext’s technology operation and reduce expenses. Euronext has issued a sub-license to a third-party for the sale and maintenance of certain legacy software modules including NSC ® . In addition to generating license revenue, such agreements enable Euronext to increase its focus on Optiq ® and future extensions thereof. The start of Euronext’s production use of Optiq ® in 2018 will be a significant opportunity to promote the platform to new cilents. Optiq ® enables the market solutions business to be more competitive by offering solutions that are faster, more resilient and cheaper to operate. It has been designed for high-volume markets and so will meet the throughput and resilience needs of most global exchanges. As a result, market solutions’ priorities for the future Optiq ® roadmap will include integrating new functions and asset classes to increase the flexibility, configurability and extensibility offered to clients. Most technology solutions provided to clients include software for reference data management, price calculation and market control functions. The high level of commonality between exchange operations around the world means that many of these solutions can be delivered to clients with little or no client-specific customisation. In some cases, client requirements can be met by simple configuration changes and in others only minor software modifications are required. Whichever approach is taken, the rights to new platform capabilities remain with Euronext and are incorporated into the core product for the benefit of all users (including Euronext itself). This mutually beneficial, user-community approach means that Euronext can maintain an industry leading platformwith lower expenses than would otherwise be the case. Where Euronext does not offer commercial in-house software for a function required by a client, third-party software can easily be integratedwith Optiq ® . This approach is used for the MAR surveillance

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2017 REGISTRATION DOCUMENT