EURONEXT_Registration_Document_2017

RISKS

Operational Risks

EMPLOYEES The Company is dependent on the experience and industry knowledge of management and other key staff to operate its business operations and execute its strategies. Euronext recognises there is a shortage in the employment market for true specialists in a number of areas, such as in the information technology field and the field of operation of markets and particular product niches, and the Company competes for staff with a large number of other enterprises in these areas. The Company’s success will depend in part upon its ability to continue to attract, develop and retain key staff members in a number of disciplines. A loss of, or an inability to attract senior management or other key staff could have a material adverse effect on the business, results of operations, financial condition and cash flows. THIRD-PARTY PROVIDERS The Group relies on third parties for post-trade services including clearing and settlement and other services. In particular, under its clearing service agreements with LCH S.A., the Paris based clearing house of LCH S.A. Group Ltd, which is majority owned by LSEG, one of its competitors, Euronext relies on LCH S.A. to provide Central Counter Party (“CCP”) services for trades executed on the Company’s cash and derivatives markets and to manage related CCP functions, such as risk, novation and multilateral netting. MiFID II has brought into force the open access and interoperability rules in relation to clearinghouses. While there are transitional arrangement (Article 54 of EU Regulation No 600/2014) that have been granted for Euronext as well as other trading and clearing venues for a period of 30 months, it is uncertain how this can impact Euronext in the future, also because it is not the ultimate owner of its clearing solution. The Group also relies on the services of Euroclear group (“Euroclear”) for the settlement of cash market trades other than in Portugal and on the services of InterContinental Exchange, (“ICE”) for the provision of network and colocation and data centre services. To the extent that any of the third parties on which Euronext relies experiences difficulties, materially changes its business relationship with the Company or is unable for any reason to perform its obligations, any such event could have a material adverse effect on the business, reputation, results of operations, financial condition and cash flows of Euronext. CHANGE MANAGEMENT AND INTEGRATION The Group’s change agenda is driven by internally determined programs, acquisitions and external factors. Internal programs include transforming Euronext technology and business operations through Optiq®, the new enhanced multi-market trading platform, evolving its data governance processes and executing its Agility for Growth strategy including launching of newservices and acquisitions.

Acquisitions include CompanyWebcast, iBabs, Fastmatch, InsiderLog and the Irish Stock Exchange. External factors include the changing business and regulatory landscape, resulting from global economic factors, as well as MiFID II implementation and Brexit impacts. The number of significant programs and recent acquisitions, including the acquisition of the Irish Stock Exchange, in progress simultaneously, with related impacts, that, if not delivered or delivered as originally designed or with delays, may have an adverse impact on the business, culture reputation and financial condition of the Company including an increased cost base without a proportionate increase in revenue. TECHNOLOGY Technology is a key component of Euronext’s business strategy, and is crucial to the Company’s success. Euronext’s business depends on the performance and stability of complex computer and communications systems. Heavy use of Euronext’s platforms and order routing systems during peak trading times or at times of unusual market volatility could cause its systems to operate slowly or even to fail for periods of time. These events could cause unanticipated disruptions in service to exchange members and clients, slower response times or delays in trade executions and related impacts. Euronext operates in a business environment that continues to experience significant and rapid technological change. To remain competitive, the Company must continue to enhance and improve the functionality, capacity, accessibility, reliability of its technology. The Group is transforming its Technology organisation through its launch of Optiq®, a new enhanced multi-market trading platform, bringing leading technology to ensure high reliability. Euronext’s success will depend, in part, on this continued innovation and investment in its trading systems and related ability to respond to customer demands, understand and react to emerging industry standards and practices on a cost-effective and timely basis. Exploiting technology and the ability to expand system capacity and performance to handle increased demand or any increased regulatory requirements is critical to Euronext’s success. If the Group’s technology is not properly managed or the resources supporting the changes are not properly allocated, Euronext may lose market share or volumes, which could have an effect on business and financial results. SECURITY The secure transmission of confidential information over public and other networks is a critical element of Euronext’s operations. As a result, the Group accumulates, stores and uses business data which is protected by business contracts and regulated by various law, including data protection, in the countries in which it operates.

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www.euronext.com

2017 REGISTRATION DOCUMENT