EURONEXT_Registration_Document_2017

RISKS

REGULATORY COMPLIANCE AND CHANGE Euronext’s business in Europe is subject to extensive regulation at the European level and by national regulators in the relevant European jurisdictions where the Group has operations, including, Belgium, France, the Netherlands, Portugal and the United Kingdom. In addition, if Euronext continues to expand, other jurisdictions such as the United States, in relation to its application to the SEC/FINRA to operate an ATS in the US related to bonds (Synapse), Ireland, given the potential acquisition of the Irish Stock Exchange, and Asia, with regards to initiatives for FastMatch expansion, may bring additional requirements. Competitors, such as alternative trading venues that are not regulated markets or MTFs are subject to less stringent regulation than an exchange. In addition, as the Group seeks to expand its product base or the jurisdictions in which it operates, it could become subject to oversight by additional regulatory bodies. Calls for enhanced regulatory scrutiny following the financial crisis generate risks and opportunities. This may lead to the following impacts:  decision by any of Euronext’s regulators to impose measures which may impact the competitive situation and possible strategy of the Group;  potential increase of the fees required to pay towards the national regulators within the European Union and compliance costs, as well as of the costs of firms undertaking business in the European securities markets generally;  delay or denials of regulatory approval requested by Euronext to further its strategy for initiatives, leverage business opportunities, change its governance, impacting Euronext’s competitive position. The regulatory regime within Europe has been amended and extended. Initially scheduled for market application in 2017, the revised European Union Markets in Financial Instruments Directive (MiFID II / MiFIR) is effective since 3 January 2018. Compliance to this new regime by all market actors will potentially change the competitive landscape and may, therefore, have an adverse effect on the Company’s business.

Key clauses from MiFID II that are being monitored include the impact of the tick size regime, the growth in size and scale of trading via systematic internalisers approach and open access provisions. The outcome, given the implementation date of 3 January 2018, is not yet known. The decision of the United Kingdom to withdraw from the European Union (Brexit) is likely to have wide-ranging implications for European financial markets whose full impact will only become clear once the negotiations between the European Union and the United Kingdom regarding withdrawal have clarified the general nature of the post-Brexit relationship (including, in particular, the extent to which UK-based firms have access to the single market in financial services). A Group of Reference shareholders, under a shareholders agreement, owns in aggregate 23.86% of the Company’s Ordinary Shares. This Group received a non-objection by the Dutch Ministry of Finance and signed a Reference shareholders’ Agreement (“ Reference shareholders’ Agreement ” see infrastructure on 4-4-1 “ Reference shareholders ” under section 4.4 “ Share classes and major shareholders ”). This Group has continued to apply its right to propose a third of the Supervisory Board directors to the General Meeting of shareholders , These three directors could be in a situation of conflict of interest if a decision to be made at the Supervisory Board level for the business development of the Company would potentially conflict with their interest as a shareholder representative. Euronext considers that the Dutch Civil Law (Book 2), the Dutch Corporate Governance Code (“the Code”), the rules and regulations under the Market Abuse Directive and its Articles of Association provide clear and robust standards and safeguards. In addition, the Articles of Association of Euronext provide not only that decisions of the Supervisory Board are made at the absolute majority of the votes cast (Article 10-1), but also forbid any Supervisory Board director to participate in the deliberation and decision-making process if it concerns a subject in which this member has a direct or indirect interest which conflicts with the interest of the Company (Article 11.2). As a result of these safeguards, Euronext deems the risk for business development based on such a conflict of interest is mitigated.

Financial Risks

CAPITAL MANAGEMENT The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern, to comply with regulatory requirements and tomaintain an optimal capital structure to reduce the cost of capital and provide return to shareholders. Euronext N.V. is a holding Company and its ability to generate income and pay dividends is dependent on the ability of its subsidiaries to declare and pay dividends or lend its funds. The actual payment of

future dividends by the Company and the payment of dividends to the Company by its subsidiaries, if any, will depend on a number of factors including distributable profits and reserves and minimum capital requirements mandated by regulatory authorities. Due to factors mentioned above regarding results, mandated capital requirements by regulatory authorities and other agreements, the Company may be constrained with its use of capital.

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2017 REGISTRATION DOCUMENT