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Commercially confidential

Application for Registration of

Euronext Amsterdam

as a Foreign Board of Trade

Clearing Organization:

LCH SA
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CONTENTS

Section:

1. Summary of the Euronext FBOT applications

2. Glossary

3. Exhibits

4. Form FBOT 

5. Appendices

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SECTION 1: SUMMARY OF THE EURONEXT FBOT APPLICATIONS 

This application for registration under the Foreign Boards of Trade (FBOT) regime is made by 

Euronext Amsterdam N.V., which is part of the Euronext group.

In addition, application for registration under the FBOT regime is being made separately by the 

following entity:

 Euronext Paris SA

These entities are wholly-owned subsidiaries of Euronext NV. Details can be found in Section 2 

(Business Organization) and the Hierarchy Structure Chart for the Group is included at 

Appendix 1.

The Euronext derivatives markets include the markets operated by Euronext Amsterdam, 

Euronext Brussels, Euronext Lisbon and Euronext Paris 

The entities making application for registration as FBOTs currently benefit from no-action 

relief, as follows:

Entity Location Action Date

Euronext Paris Paris, FR No-Action Letter 

Issued

08/10/1999

Euronext 

Amsterdam

Amsterdam, NL No-Action Letter 

Issued

08/26/2005

Euronext Paris Paris, FR Amended No-Action 

Letter Issued

09/29/2006

Euronext Brussels SA/NV does not benefit from foreign terminal no-action relief and is not 

seeking for the time being permission to make its electronic trading system available to 

Members in the United States (for background, Euronext Brussels lists futures and options on 

futures on its national equity index, the BEL 20®.No-action relief was obtained on 31 August 

2011 for offer and sale in the US of the futures contract based on the BEL 20®).

Euronext Lisbon does not currently benefit from foreign terminal no-action relief nor from any 

no-action relief for offer and sale of index futures contract and is not seeking registration as an 

FBOT at this time.

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SECTION 2: GLOSSARY

In this FBOT application, the terms below shall have the meaning ascribed next to them:

Term Meaning

AFM Netherlands Authority for the Financial Markets 

AFS The Dutch Act on Financial Supervision

Book I Euronext’s Harmonised Rules

Book II Non Harmonised Rules relating to the specific Euronext market (e.g. Euronext 

Amsterdam, Euronext Paris)

CCG Euronext’s Common Customer Gateway which is a messaging interface between 

the UTP Matching Engine and the Member’s front end trading application

CEA Commodity Exchange Act 1936, as since amended from time to time 

Commission The CFTC

DCC The Dutch Civil Code

EC European Commission

ESMA The European Securities and Markets Authority, an independent authority 

continuing the work of the former Committee of European Securities Regulators 

(CESR) but with new competencies and powers

Euronext The Euronext group. Euronext operates Derivatives Markets and Securities 

Markets

Euronext’s 

derivatives 

markets.

References to the derivatives business include equity and index options, single 

stock futures, single stock dividend futures and narrow-based index products 

although these products do not form part of this FBOT application

GALA The Dutch General Administrative Law Act

ITM Individual Trader Mnemonic

MiFID2 Directive 2014/65/EC of the European Parliament and of the Council on markets 

in financial instruments and amending Directive 2002/92/EC and Directive 

2011/61/EU.

MIFIR Regulation 600/2014/EU of the European Parliament and of the Council on 

markets in financial instruments 

Pricer Pricing and Settlement sub-system which generates fair value prices for all 

options and futures contracts

SEC The US Securities and Exchange Commission

SFTI ICE’s Secure Financial Transaction Infrastructure network over which all 

Euronext services are delivered

UTM UTM (Universal Trading Manager) is the tool used by Euronext Market Services 

staff at the central exchange for monitoring global UTP RM market activity and 
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handling emergencies. Euronext Market Services can, for example, monitor the 

trading state of each instrument class and the number of orders and trades 

processed today. They can also handle emergencies (for example, halt trading on 

the market in case of a technical failure or a market crisis). 

UTP Euronext’s Universal Trading Platform (UTP

XDP Euronext’s Exchange Data Publisher

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SECTION 3: EXHIBITS 
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EXHIBIT A: GENERAL INFORMATION AND DOCUMENTATION

A–1:

A description of the following for the foreign board of trade: Location, history, size, 

ownership and corporate structure, governance and committee structure, current or 

anticipated presence of offices or staff in the United States, and anticipated volume of 

business emanating from members and other participants that will be provided direct 

access to the foreign board of trade's trading system.

-----------------------

Location, history, size, ownership and corporate structure, governance and committee

structure, current or anticipated presence of offices or staff in the United States

This application for registration under the Foreign Boards of Trade (FBOT) regime is made by 

Euronext Amsterdam N.V. (Euronext Amsterdam).

Euronext Amsterdam is a wholly-owned subsidiary of Euronext N.V., the holding company of 

Euronext group. Details can be found in Section 2 (Business Organization) and in the Hierarchy 

Structure Chart for the Group is included at Appendix 1.

The Euronext derivatives markets include the markets operated by Euronext Amsterdam, 

Euronext Brussels, Euronext Lisbon and Euronext Paris.

Euronext Amsterdam currently benefits from no-action relief granted by the CFTC as follows:

Entity Location Action Date

Euronext 

Amsterdam

Amsterdam, NL No-Action Letter 

Issued

08/26/2005

The Euronext markets are harmonised in terms of trading platform and membership criteria.

Each market operates in accordance with the Harmonised Rules in Book I as well as the 

specifically tailored rules in each market’s Book II. The investor profiles are different across the 

markets because the product offerings are not the same in each market. 

Location

The head office of Euronext Amsterdam is situated at the following address: 

Beursplein 5, 1012JW, Amsterdam, The Netherlands

A–1
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History

Established four centuries ago, the Amsterdam stock exchange is regarded as the oldest in the 

world. The Verenigde Oostindische Compagnie, a large shipping company, needed funds to 

finance the shipping of goods from the Far East and its shares were the first traded in the world.

In 1978, the Amsterdam Stock Exchange Association launched the European Options Exchange 

and in 1997 a new company, Amsterdam Exchanges, was formed which became a demutualised 

company.

Euronext was created in 2000 through the merger of the Paris, Amsterdam and Brussels 

exchanges. 

In December 2001, Euronext NV acquired the shares of the London International Financial 

Futures and Options Exchange (LIFFE). In 2002 the group merged with the Portuguese stock 

exchange Bolsa de Valores de Lisboa e Porto (BVLP), renamed Euronext Lisbon.

On April 4, 2007, NYSE Group Inc. and Euronext NV combined to create NYSE Euronext. 

In 2013, NYSE Euronext was acquired by Intercontinental Exchange (ICE).

In March 2014, a new entity called Euronext NV was incorporated within the ICE group that 

became the parent of, among other entities, Euronext Paris, Euronext Brussels and Euronext 

Amsterdam. In June 2014, this entity was separated from the ICE group by means of an IPO.

Since then, Euronext NV has been an independent listed company.

Size

In terms of size, Euronext’s European derivatives products had an average daily value (ADV) in 

2016 of 491,214 contracts executed through the trading platform.

The respective contributions of the FBOTs applying for registration* were as follows in 2017:

Market ADV in 2017 % of total ADV

Euronext Amsterdam 263,194 47.8

Euronext Paris 281,373 51.1

* the respective figures for Euronext Brussels and Euronext Lisbon, which are not applying for 

registration, were 4868/0.9% and 670/0.1% 
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Ownership and corporate and committee structure 

The ownership and corporate structure of Euronext Amsterdam is described in Section 2 

(Business Organization) of the Form FBOT included at Section 4 of this application.

Euronext NV is a public company established under the laws of the Netherlands in 2014.

The main companies in the family tree are as follows:

The governance of the derivatives markets reflects the integration and harmonisation of the 

markets. Euronext NV, the European holding company, is a Dutch company with a two-tier 

governance structure comprising a Supervisory Board and a Managing Board. The Supervisory 

Board is responsible for overseeing the actions and policies of the Managing Board and the 

general course of Euronext’s business activities.

Euronext Amsterdam is a public limited liability company incorporated under the laws of the 

Netherlands. Euronext Amsterdam is a market operator and is governed by the AFS.

The Managing Board of Euronext Amsterdam is responsible for determination of the policy and 

implementation of managerial decisions for both the Cash and Derivatives businesses. The 

Euronext’s Amsterdam Board comprises three Board Members including the Chief Executive 

Officer. 

Presence in the US

Euronext (including Euronext Amsterdam) has no operations in the US and has no facility for 

accepting orders in the US. Euronext (including Euronext Amsterdam) also has no clearing 

infrastructure or similar operations in the US. 

Euronext has been committed to marketing its CFTC approved products to US based customers 

for many years. Commercial teams are able and willing to travel to keep contact with US based 

participants and are focused on regular interaction with a wide range of US based market users 

including proprietary trading firms, buy-side participants and FCMs.

Euronext NV

Euronext market 

undertakings

including Euronext 

Amsterdam

Other 

subsidiaries
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Marketing activities include educational seminars, participation in industry conferences, emailbased campaigns and an ongoing program of one-on-one visits. These activities prioritize 

communication of new initiatives such as new product launches, as well ongoing marketing of 

existing products and services. The target audience includes traders, asset managers, leveraged 

funds, CTAs, sell-side staff at FCMs and banks.

Anticipated volume of business emanating from members and other participants that will 

be provided direct access to the foreign board of trade's trading system.

The anticipated volume of business is expected to be in line with the volume of business which 

is currently executed with no-action relief. For Euronext Amsterdam, the volumes in Quarter 4

of 2017 from US terminals were:

Buy-side 354,720

Sell-side 355,865

Total 710585

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EXHIBIT A: GENERAL INFORMATION AND DOCUMENTATION

A–2:

Articles of association, constitution, or other similar organizational documents.

Please see Appendix 2 for the Articles of association of Euronext Amsterdam. 

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A–2
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EXHIBIT A: GENERAL INFORMATION AND DOCUMENTATION

A–3:

(1) Membership and trading participant agreements.

(2) Clearing agreements.

Please see Appendix 3 for the following:

 Euronext Membership Application Form, and

 Membership Information Form.

A Clearing Agreement between Euronext and LCH SA was signed in 2001 and renegotiated

successively in 2013, then in 2017.

As a consequence of the latest re-negotiation, a Derivatives Clearing Agreement between 

Euronext and LCH SA was agreed on 31 October 2017, pursuant to which LCH SA provides 

clearing services to our continental Europe derivatives markets.

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A–3
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EXHIBIT A: GENERAL INFORMATION AND DOCUMENTATION

A–4:

Terms and conditions of contracts to be available through direct access (as specified in 

Exhibit E).

Please see Appendix 4 for the Contract Specifications.

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A–4
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EXHIBIT A: GENERAL INFORMATION AND DOCUMENTATION

A–5:

The national statutes, laws and regulations governing the activities of the foreign board 

of trade and its respective participants. 

Please see Appendix 5 for the Dutch Act on Financial Supervision.

Members are subject to local provisions depending on where they are authorised and regulated.

For Members in the EU, the provisions are largely determined by Title II of MiFID2 

(“Authorization and operating conditions for investment firms”), which is included in Appendix 

5.

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EXHIBIT A: GENERAL INFORMATION AND DOCUMENTATION

A–6:

The current rules, regulations, guidelines and bylaws of the foreign board of trade.

Please see Appendix 6 for the following:

 Book I (Harmonised Rules)

 Book II (Specific rules applicable to the Dutch regulated markets)

 Euronext Trading Procedures

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EXHIBIT A: GENERAL INFORMATION AND DOCUMENTATION

A–7:

Evidence of the authorization, licensure or registration of the foreign board of trade 

pursuant to the regulatory regime in its home country jurisdiction and a representation 

by its regulator(s) that it is in good regulatory standing in the capacity in which it is 

authorized, licensed or registered.

Please see the official register on the website of the AFM:

https://www.afm.nl/en/professionals/registers/alle-huidige-registers/handelsplatform.aspx

Please see Exhibit F in respect of the representation of good regulatory standing.

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EXHIBIT A: GENERAL INFORMATION AND DOCUMENTATION

A–8:

A summary of any disciplinary or enforcement actions or proceedings that have been 

brought against the foreign board of trade, or any of the senior officers thereof, in the 

past five years and the resolution of those actions or proceedings.

A number of disputes with market participants have been resolved through arbitration or other 

legal proceedings.

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A–8
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EXHIBIT A: GENERAL INFORMATION AND DOCUMENTATION

A–9:

An undertaking by the chief executive officer(s) (or functional equivalent[s]) of the 

foreign board of trade to notify Commission staff promptly if any of the representations 

made in connection with or related to the foreign board of trade’s application for 

registration cease to be true or correct, or become incomplete or misleading.

Please see attached.

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I hereby undertake to notify Commission staff promptly if any of the representations made in 

connection with or related to this foreign board of trade’s application for registration cease to 

be true or correct, or become incomplete or misleading.

Name: M. van Tilburg

Job Title: CEO, Euronext Amsterdam N.V.

Signature:

Date:

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EXHIBIT B: MEMBERSHIP CRITERIA 

B:

(1) A description of the categories of membership and participation in the foreign board 

of trade and the access and trading privileges provided by the foreign board of trade. The 

description should include any restrictions applicable to members and other participants 

to which the foreign board of trade intends to grant direct access to its trading system.

(2) A description of all requirements for each category of membership and participation 

on the trading system and the manner in which members and other participants are 

required to demonstrate their compliance with these requirements. The description

should include, but not be limited to, the following:

(i) Professional Qualification. A description of the specific professional requirements, 

qualifications, and/or competencies required of members or other participants and/or 

their staff and a description of the process by which the foreign board of trade confirms

compliance with such requirements.

(ii) Authorization, Licensure and Registration. A description of any regulatory and selfregulatory authorization, licensure or registration requirements that the foreign board 

of trade imposes upon, or enforces against, its members and other participants including, 

but not limited to any authorization, licensure or registration requirements imposed by 

the regulatory regime/authority in the home country jurisdiction(s) of the foreign board 

of trade. Please also include a description of the process by which the foreign board of 

trade confirms compliance with such requirements.

(iii) Financial Integrity. A description of the following:

(A) The financial resource requirements, standards, guides or thresholds required of 

members and other participants.

(B) The manner in which the foreign board of trade evaluates the financial

resources/holdings of its members or participants.

(C) The process by which applicants demonstrate compliance with financial

requirements for membership or participation including, as applicable:

(i) Working capital and collateral requirements, and

(ii) Risk management mechanisms for members allowing customers to place orders.

(iv) Fit and Proper Standards. A description of how the foreign board of trade ensures 

that potential members/ other participants meet fit and proper standards.

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B
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B(1):

A description of the categories of membership and participation in the foreign board of 

trade and the access and trading privileges provided by the foreign board of trade. The 

description should include any restrictions applicable to members and other participants 

to which the foreign board of trade intends to grant direct access to its trading system.

The membership criteria set out in Book I of the Rules apply in respect of all the Euronext 

Derivatives Markets and the Euronext Securities Markets. For the purposes of this FBOT 

application, it is the Euronext Derivatives Markets membership that is relevant.

Membership of a Euronext Derivatives Market allows for direct access to that market’s 

products. Membership of each Euronext Derivatives Market is separate and distinct although a

“fast track” process enables a Member of one market to apply for membership of any other by 

submitting a short extension application form.

In order to trade on the market(s), an applicant must make the necessary arrangements for 

trading including, for example, appointing a Clearing Member for that market and where 

applicable, ensuring it has the necessary regulatory permissions to trade the products they have 

selected on that market.

Only applicants for membership which are located in jurisdictions with satisfactory regulatory 

arrangements both in terms of the supervision of investment activity and sharing of information 

will be considered. In addition, product restrictions may apply depending on the location of the 

applicant, such as limitations on US customers pursuant to regulatory restrictions (e.g. no direct 

access for equity options).

There are not separate categories of membership for separate products other than the broad 

categories of Euronext Derivatives Membership and Euronext Securities Membership.

All Clearing members of the derivatives markets of Euronext must hold membership of LCH SA.

Members may also obtain direct access to the market for one or more of their related 

companies. Rule 3.4 of Book I sets out the requirements for such access and defines the 

ownership condition which must be satisfied in order for a firm to qualify as an Affiliate. All 

business undertaken by the Affiliate will be in the name of the Member and the Member retains 

full responsibility for the conduct of all such business.

As at 31 January 2018, Euronext Amsterdam had 134Members of the derivatives markets.
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B (2):

A description of all requirements for each category of membership and participation on 

the trading system and the manner in which members and other participants are required 

to demonstrate their compliance with these requirements.

Section 2.2 of Book I of the Rules sets out the harmonised requirements for membership of a 

Euronext Derivatives Market, which may be augmented by specific requirements for a 

particular market. At present, no such specific requirements are in place.

Membership of a Euronext Derivatives Market is open to two broad categories of firms:

(a) firms which are authorised by the competent authorities of a European Member State 

pursuant to the European Directives concerning investment services and banking1

(“MIFID firms”); and

(b) other firms (“Non-MIFID firms”), including:

(i) those which are authorised by regulatory entities located outside the European 

Union; and 

(ii) European firms whose activities are excluded from the scope of the MIFID (e.g. 

some pure commodity traders). 

The criteria for eligibility for membership are contained in Rule 2201of Book I:

“2201/1 The Relevant Euronext Market Undertaking shall determine whether an 

Applicant which does not already hold Euronext Derivatives Membership or 

Euronext Securities Membership (as the case may be) satisfies the following 

criteria:

(i) in respect of an Investment Firm or a Credit Institution, that:

(a) it is authorised by the competent authorities of its home Member

State to conduct business on the market; and

(b) where relevant, it has given appropriate notification to the 

competent authority concerned that it wishes to take up its EEA 

Right in the jurisdiction in which the Relevant Euronext Market 

Undertaking is situated;

(ii) in respect of a Non-MIFID Firm:

(a) that it is authorised, or otherwise licensed or permitted by the 

Competent Authorities or other relevant regulatory authority to 

conduct business on the market, or can demonstrate that such 

authorisation, licensing or permission is not required; 

 

1 MIFID and the Banking Directive (EU Directive relating to the taking up and pursuit of the business of credit institutions).
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(b) that it is of sufficient good repute;

(c) that it has a sufficient level of trading activity, competence and 

experience; and

(d) that it has adequate organisational arrangements;

(iii) that its staff are suitably qualified and experienced in order to implement 

and maintain adequate internal procedures and controls in relation to its 

intended business on the market;

(iv) that, where relevant, it has entered into any agreement contemplated by 

this Rule Book and has met any technical requirements specified by the 

Relevant Euronext Market Undertaking;

(v) that it can demonstrate fluency of its relevant personnel in English or in 

one of the languages of the Relevant Euronext Market Undertaking;

(vi) that it can demonstrate that it has sufficient resources for the role(s) it 

intends to perform on the market; and

(vii) any other criteria which the Relevant Euronext Market Undertaking may

prescribe with regard to Membership and publish by Notice.”

All of the membership criteria apply as continuing obligations for firms admitted to 

membership.

Article 53 of MiFID2 states that Member States shall require regulated markets to establish and 

maintain transparent and non-discriminatory rules, based on objective criteria, governing 

access to or membership of the regulated market.

The description should include, but not be limited to, the following:

(i) Professional Qualification. A description of the specific professional requirements, 

qualifications, and/or competencies required of members or other participants and/or 

their staff and a description of the process by which the foreign board of trade confirms 

compliance with such requirements.

Before an application for membership is submitted, Euronext staff will discuss with the 

prospective applicant the criteria to be fulfilled in order to identify any potential obstacles.

The applicant will then complete the membership application forms – please see Exhibit

A–3(1). 

Following detailed review of an application, Euronext conducts a visit or conference call to 

ensure the applicant has adequate controls and procedures in place for the scale and nature of 

its intended operation as a Member.

The areas that are covered include (but are not limited to): management structure, front and 

back office, compliance, risk, back office and operations (including post trade 

processing/clearing), account opening procedures and client documentation (where 
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applicable), experience of relevant staff , training and supervision, and personal account dealing 

(where applicable). 

As part of its system of internal controls, a Member is required to have documented internal 

procedures specific to its capacity on the Euronext Markets. Such procedures must reflect how 

specific functions and tasks are carried out by the Member. Guidance is provided to applicants 

on the procedures which must be in place – please see Appendix 7. 

Whilst applicants are required as part of the application process to disclose any disciplinary 

actions, due diligence checks are carried out by Euronext on the applicant, its parent 

company(ies) including shareholders using a threshold for inclusion of 20% and its key 

personnel. Such checks are made using various search engines and regulatory websites. Any 

adverse information is escalated internally and where necessary any recommendations or 

remedies are actioned. An example of an instance in which membership would be denied might 

be where there remained uncertainties about the fitness and probity of an applicant which was 

not subject to authorisation by a Competent Authority.

Euronext does not prescribe professional qualifications (although these may be required by an 

applicant’s regulator or supervisor) but requires an applicant to demonstrate that its staff are 

suitably qualified and experienced in relation to the applicant’s intended business on the 

market. The competence requirement is tailored to the nature and scale of business which the 

applicant proposes to conduct on Euronext.

(ii) Authorization, Licensure and Registration. A description of any regulatory and selfregulatory authorization, licensure or registration requirements that the foreign board of 

trade imposes upon, or enforces against, its members and other participants including, but 

not limited to any authorization, licensure or registration requirements imposed by the 

regulatory regime/authority in the home country jurisdiction(s) of the foreign board of 

trade. Please also include a description of the process by which the foreign board of trade 

confirms compliance with such requirements.

Applicants for membership must be appropriately authorised, or otherwise licensed or 

permitted by a regulatory authority to conduct business on the market or, in the absence of such 

a requirement, applicants must be able to demonstrate to Euronext that they are fit and proper 

and enjoy the business standing suitable for admission to membership.

Rule 2102 of Book I refers to the regulatory authorization required:

“2102/1 Membership capacities are determined by the scope of the Member’s 

authorisation, licence or permission from the relevant competent authority, 

where such authorisation, licence or permission is required, though a Member 

may, if he so wishes, restrict such scope in respect of his activities on one or 

more of the Euronext Markets”
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Compliance with the requirement for regulatory authorization is confirmed by Euronext by 

reference to the relevant regulator or its published information. 

(iii) Financial Integrity. A description of the following:

(A) The financial resource requirements, standards, guides or thresholds required of 

members and other participants.

Financial resources and capital adequacy requirements are imposed on Members by the 

relevant prudential regulator or supervisor of the firms concerned (where such firms are 

authorised or licensed) and, in the case of Clearing Members, by the relevant Clearing House.

For Members in Europe, the standards set by MiFID2 and the Capital Requirement Directive and 

Regulation (CRDIV/CRR)2 are applied by the relevant competent authority. The main prudential 

regulators for Members of the Euronext markets are, as far as Euronext countries are 

concerned:

Belgium: Financial Services and Markets Authority

France: Authorité de Contrôle Prudentiel et de Résolution

Netherlands: Autoriteit Financiële Markten 

UK: PRA

Outside Europe, the main regulators of Members of the Euronext markets are:

Hong Kong: Securities and Futures Commission

Israel: the Israeli Securities Authority (ISA)

Singapore: Monetary Authority of Singapore

Switzerland: Swiss Financial Market Supervisory Authority (FINMA)

US: CFTC.

Additional requirements are not imposed by Euronext.

Euronext still maintains the right to request Members and applicants for membership to furnish 

such financial information as it deems appropriate and, pursuant to Rule 2401 (Book I), 

Members are required to notify the Exchange in the event of insolvency or other similar event 

occurring.

The capital requirements imposed on Clearing Members by LCH vary depending on the markets 

on which the Members are active and whether they clear the business of other Members in 

 

2

so-called CRDIV package, including Directive 2013/36/EU and Regulation 575/2013
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addition to clearing their own business. Clearing Members must also comply with the regulatory 

capital requirements relevant to their regulated activities.

For non-clearing firms, it is the responsibility of each Clearing Member to determine the 

appropriate level of cash/collateral which it requires from the members for whom it clears.

(B) The manner in which the foreign board of trade evaluates the financial 

resources/holdings of its members or participants.

As stated in (A) above, financial resources and capital adequacy requirements are imposed by 

Members’ prudential regulator or supervisor. The regulatory model in Europe is that evaluation 

of the financial resources/holdings of a Member is made by the relevant prudential regulator or 

supervisor. The Single Market Directives3 expressly reserve responsibility for the prudential 

supervision of a MiFID investment firm to its Home State regulator. 

Euronext ensures that each Member is regulated and subject to appropriate financial resources 

requirements.

(C) The process by which applicants demonstrate compliance with financial requirements 

for membership or participation including, as applicable: 

(i) Working capital and collateral requirements, and

As stated in (A) and (B) above, financial resources and capital adequacy requirements are 

imposed by Members’ prudential regulator or supervisor. Monitoring a firm’s working capital is 

within the jurisdiction of the relevant prudential regulator or supervisor. Collateral 

requirements are set by the relevant clearing house.

(ii) Risk management mechanisms for members allowing customers to place orders.

Rules 8106/3 and 8106/4 of Book I provide that:

“8106/3 A Member’s internal controls shall include pre- and post-trade risk management 

controls which are appropriate to the nature, scale and complexity of the 

Member’s business on the Relevant Euronext Market Undertaking. For the 

 

3

The European Directives which provide the framework for unification within the European Economic Community, and which 

include the CRDIV package and MiFID.
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avoidance of doubt this means that, inter alia, a Member shall ensure that it has 

appropriate arrangements in place:

(i) to vet orders prior to their submission to the Central Order Book, 

irrespective of whether such orders have been submitted manually or 

electronically (including via an Automated Order Routing System or via 

Sponsored Access);

and

(ii) to monitor the positional and financial risks inherent in the business it

conducts.

8106/4 In respect of arrangements put in place by a Member pursuant to Rule 8106/3, 

the Member must be able to demonstrate to Euronext that the following 

monitoring requirements have been incorporated in the Member’s risk control 

systems:

(i) position limits;

(ii) user definitions (i.e. the ability to define the individual user(s));

(iii) product definitions (i.e. the ability to restrict access to particular Admitted 

Financial Instruments or groups of Admitted Financial Instruments);

(iv) maximum order size per user; and

(v) either automatic order rejection when a limit is exceeded or the order 

being held subject to manual override by an appropriately authorised 

risk manager.”

When documenting its procedures for risk management, an applicant should as a minimum 

consider the following:

 the security arrangements in place to prevent unauthorised access to the trading 

systems

 the pre-trade risk filters that are in place and that they comply with Rule 8106/4 

 how are the filters set

 who is authorised to set them

 how often they are reviewed and by whom

 who is authorised to change them 
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 what intra-day risk analysis is performed and how

 who monitors for attempted breaches of limits, how these are escalated and what 

action is then taken, and 

 business continuity and disaster recovery procedures.

Compliance is checked at the admission stage through review of documentation and a 

compliance visit or conference call.

Compliance on an ongoing basis is checked through audits of Members using a risk-based 

approach.

Direct access to the trading system 

Only Members and their Affiliate(s) have direct access to the trading system. The scope of 

access is dictated by the entity’s regulatory authorisation and by the products for which 

Euronext has granted approval to the Member.

In relation to the US, Euronext restricts direct access to Members by means of hardware, 

password control, and other similar physical or electronic security measures. Access is limited 

to those products for which Euronext has obtained no-action relief.

Members in the US acting on behalf of customers will be Futures Commission Merchants 

(FCMs), Commodity Trading Advisors (CTAs) or Commodity Pool Operators (CPOs).

The Rules place an onus on Members to have adequate security measures to restrict access to 

the trading system to persons authorised by the Member.

(iv) Fit and Proper Standards. A description of how the foreign board of trade ensures that 

potential members/other participants meet fit and proper standards.

The authorisation of an Investment Firm as a MIFID firm or a Credit Institution by a competent 

authority is normally sufficient to meet the “fit and proper” requirements for membership of a 

Euronext market.

In the case of a non-MIFID firm, the applicant must demonstrate to Euronext’s satisfaction that 

it is “fit and proper” and, if applicable, is authorised or otherwise licensed or permitted to 

conduct business on a Euronext Derivatives Market.
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Rule 2201/1(iii) of Book I requires an applicant to ensure “that his staff are suitably qualified 

and experienced in order to implement and maintain adequate internal procedures and controls 

in relation to his intended business on the market.”

All applicants are asked to complete a compliance questionnaire to ensure that they meet the fit 

and proper criteria. Information provided in the compliance questionnaire is followed up by 

Euronext with a conference call or a visit to the applicant’s offices to discuss their internal 

controls and procedures in further detail.

-----------------------
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Commercially confidential

EXHIBIT C: BOARD AND/OR COMMITTEE MEMBERSHIP 

C:

(1) A description of the requirements applicable to membership on the governing board 

and significant committees of the foreign board of trade.

(2) A description of the process by which the foreign board of trade ensures that 

potential governing board and committee members/other participants meet these 

standards.

(3) A description of the provisions to minimize and resolve conflicts of interest with 

respect to membership on the governing board and significant committees of the foreign 

board of trade.

(4) A description of the rules with respect to the disclosure of material non-public 

information obtained as a result of a member’s or other participant’s performance on the 

governing board or significant committee.

-----------------------

C(1):

A description of the requirements applicable to membership on the governing board

and significant committees of the foreign board of trade.

Euronext NV

The governance of the Euronext’s Derivatives Markets reflects the integration and 

harmonisation of the markets. Euronext NV, the European holding company, is a Dutch company 

with a two-tier governance structure comprising a Supervisory Board and a Managing Board.

The Supervisory Board is responsible for overseeing the actions and policies of the Managing 

Board and the general course of Euronext’s business activities.

The Managing Board meets regularly to discuss strategy, policy and implement managerial 

decisions for both the Cash and Derivatives businesses. The Managing Board is represented in

the managing boards of each of the Euronext Markets by one of its members.

The Supervisory Board of Euronext NV is composed of nine non-executive members. The 

Supervisory Board has appointed an Audit Committee, a Remuneration Committee and a 

Nomination and Governance Committee.

C
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The composition of the Supervisory Board reflects general business and supervisory experience 

as well as experience gained in positions of responsibility in the wider community. Individual 

members of the Supervisory Board have expertise and experience in the functioning and 

operating of national, European and international capital markets. In addition to general skills, 

the specific expertise and experience in the following areas is represented in the Supervisory 

Board:

 finance, control and risk management

 national and international economics and monetary policy

 personnel and organisation

 information technology and data processing

 legislation and regulation

 financial institutions, banks and brokerage firms

 institutional and retail investors

 listed companies, and

 asset management, investment banking.

The appointment procedure is laid down in the articles of association of Euronext NV and in 

Dutch law. Members are appointed by the annual general meeting of the company. The 

Supervisory Board and the shareholders’ meeting may recommend persons for appointment.

The Managing Board is composed of the CEO and the CEOs of the five Euronext markets.

Information in Euronext NV’s annual report about members of the Supervisory Board includes 

their age, profession, primary position and nationality and, where relevant, any other capacities 

they exercise. Information about the members of the Supervisory Board and the Managing 

Board is also available on the company’s website, www.euronext.com.

Euronext Amsterdam NV

Euronext Amsterdam N.V., is a Dutch public limited liability company with a two-tier 

governance structure comprising a Supervisory Board and a Managing Board.

The Managing Board comprises three Board Members including the Chief Executive Officer. 

The Supervisory Board of Euronext Amsterdam N.V. is composed of three non-executive 

members and is responsible for overseeing the actions and policies of the Managing Board 

and the general course of the business activities of Euronext Amsterdam N.V.
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C (2):

A description of the process by which the foreign board of trade ensures that potential 

governing board and committee members/other participants meet these standards.

The Board of Directors of Euronext Amsterdam N.V. sets the orientations of the company’s 

business and monitors their implementation for both the Cash and Derivatives businesses. 

The Supervisory Board of Euronext Amsterdam N.V. is composed of three non-executive 

members and is responsible for overseeing the actions and policies of the Managing Board and 

the general course of the business activities of Euronext Amsterdam N.V.

The Board of Directors of Euronext N.V. elects the Chairman of the Board of Directors of

Euronext Amsterdam N.V. The Chairman represents the Board. He organizes and directs the 

Board’s work and reports thereon, inter alia, to the Supervisory Board. He ensures that 

Euronext Amsterdam N.V. operates properly and that the directors are able to carry out their 

duties. 

The Management Board can also decide to set up specialised committees. The composition and 

terms of reference of such committees are set by the Board, and the committees’ activities are 

carried out under the responsibility of the Board.

Euronext ensures that proposed members of the Board and Board committees meet the 

standards described in Exhibit C(1) through reviewing candidates’ biographies and interviews.

Euronext Amsterdam N.V. sets the independence and qualification requirements for Directors 

taking into consideration the diversity, age, skills, and experience in the context of the needs of 

the Board. 

Committee members should also meet the above criteria. 

Euronext Amsterdam N.V. currently has no committees appointed by the Board.

C (3):

A description of the provisions to minimize and resolve conflicts of interest with respect 

to membership on the governing board and significant committees of the foreign board 

of trade.

It is recognised that conflicts may arise inadvertently through business or personal relationships 

with business associates, suppliers or competitors of Euronext.
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Euronext Amsterdam is a limited liability company incorporated under the laws of the 

Netherlands. According to the Dutch Civil Code, the Directors must inform the Board of any 

actual or potential conflict of interests. 

Directors must not permit their personal interests to conflict, or appear to conflict, with the 

interests of Euronext and any potential conflict of interest must be reported forthwith to the 

Company Secretary.

C(4):

A description of the rules with respect to the disclosure of material non-public

information obtained as a result of a member's or other participant's performance on 

the governing board or significant committee.

Directors, and any other persons invited to attend board meetings, are bound by secrecy in 

regard to any information of a confidential nature presented as such to the Board.

In addition to their strict confidentiality obligations, Board members are subject to personal 

dealing rules which extend to their family members (living in the Board member’s household or 

whose transactions may be influenced by the Board member), economic dependents and any

entities over which the Board member has control.

Board members are prohibited from dealing in Euronext securities during the company’s 

quarterly blackout periods and any other blackout periods set by the company, for example 

when a major corporate transaction is yet to be disclosed publicly.

Outside of the blackout periods, no Board member in possession of material non-public 

information may trade, or advise any other person to trade, in the company’s securities until 24 

hours after the material information is released to the public. At least one full trading day must 

have elapsed before a Board member deals in the company’s securities or enters into any 

trading plan or arrangement in connection with the securities.

Board members must obtain pre-clearance from Compliance before engaging in any trade in 

Euronext securities.

Board members may not at any time engage in short-term speculative transactions involving 

Euronext securities; this prohibition includes short sales, puts and calls, caps and collars, margin 

and hedges. Persons other than directors must observe a 7 day minimum holding period for 

transactions involving Euronext securities.

On reasonable request from Compliance, Board members must provide account statements 

relating to transactions or dealings in any securities.
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EXHIBIT D: THE AUTOMATED TRADING SYSTEM

D –1:

A description of (or where appropriate, documentation addressing) the following, 

separately labeling each description:

(1) The order matching/trade execution system, including a complete description of all 

permitted ways in which members or other participants (or their customers) may 

connect to the trade matching/execution system and the related requirements (for 

example, authorization agreements).

(2) The architecture of the systems, including hardware and distribution network, as 

well as any pre- and post-trade risk-management controls that are made available to 

system users.

(3) The security features of the systems.

(4) The length of time such systems have been operating.

(5) Any significant system failures or interruptions.

(6) The nature of any technical review of the order matching/trade execution system 

performed by the foreign board of trade, the home country regulator, or a third party.

(7) Trading hours.

(8) Types and duration of orders accepted.

(9) Information that must be included on orders.

(10) Trade confirmation and error trade procedures.

(11) Anonymity of participants.

(12) Trading system connectivity with clearing system.

(13) Response time.

(14) Ability to determine depth of market.

(15) Market continuity provisions.

(16) Reporting and recordkeeping requirements.

-----------------------

D–1
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D –1 (1):

The order matching/trade execution system, including a complete description of all 

permitted ways in which members or other participants (or their customers) may connect 

to the trade matching/execution system and the related requirements (for example, 

authorization agreements).

Euronext’s Universal Trading Platform (Euronext UTP) is the trading system for Euronext’s 

derivatives and cash markets. Euronext UTP consists of a central trade matching engine, 

common customer gateways (CCG), drop copy server, exchange data publisher (XDP) and 

supporting systems.

Supporting systems include Universal Trading Manager (UTM) System and the Pricing and 

Settlement System (Pricer).

All Euronext services are delivered over ICE’s Secure Financial Transaction Infrastructure 

(SFTI®) network.

The following is a diagrammatic overview of UTP:
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Each of the major components is described further below:

Euronext UTP Matching Engine (ME)

The Euronext markets are configured across five Matching Engines allocated to the Equities 

markets and two engines are allocated to the Financial markets.

Each Matching Engine holds the central order book for the markets it supports. The Matching 

Engines receive orders from connected front end trading applications, validates those orders 

against specific criteria such as price limits and stores each order ready to perform order 

matching where possible. 

When orders match, the Matching Engine informs the respective traders and other participants 

in that market. Trade details are transmitted to the Post Trade/Clearing System for further 

processing. Traded prices and volume are also sent to quote vendors and others.

Data is sent to the AFM inAmsterdam.

Common Customer Gateway (CCG)

[Redacted Confidential Text]

Drop Copy Server

The Drop Copy Server provides a facility for all Execution Reports for one user to be copied to 

one or more additional users. These users can be risk managers, clearers or other traders within 

the same trading firm (a trader may choose to be a Drop Copy user for themselves so that they 

can use the Drop Copy feed in the event of a CCG failure).

FIX and Binary interfaces are provided.

Exchange Data Publisher (XDP)

The Exchange Data Publisher (XDP) is made up of the following components:

 Real Time Publisher:

This provides the core market data publishing service for users. The publisher receives 

data from the Matching Engine and distributes that data to all users who have 

subscribed to the XDP service. Data is streamed in FIFO sequence to all subscribers and 

segmented into channels so that a subscriber may receive only the channels in which he 

is interested. 

XDP publishes full depth of market data aggregated at each price level.
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 Retransmission Server:

This provides a mechanism for users to replenish small snapshots of market data due to 

outages or sequence issues.

 Refresh Server:

This provides a mechanism for users to receive a current snapshot of the order book and 

is useful for users affected by outages or who start business intra-day. The Refresh 

Server enables customers to obtain a snapshot of the order book for each instrument 

and the latest trade and status information for each instrument.

 File Server – Referential Data:

XDP subscribers can receive Referential Data from the XDP Referential DataFile Server 

in XML format.

(Universal Trading Manager) UTM 

[Redacted Confidential Text]

Pricer

The Pricing and Settlement sub-system (Pricer) receives underlying price feeds and uses 

theoretical pricing models to generate fair value prices for all Euronext options and futures 

contracts. 

By setting parameters for a market sector, a model price is created that is indicative of the range 

of bid/ask prices that would be generated by the market in response to an order. 

The Pricer generates new bid/ask prices in response to market changes and provides an 

indication of the price level at which a trade is likely to be executed. Euronext UTP uses these 

prices to provide price controls where applicable. 

Authorisation agreements

The following documentation underpins the market:

 Market Data Agreement 

 Service Provider Agreement

 Trading Platform Agreement, and

 Market Rules
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These are outlined after the following diagram which shows the inter-relation of the 

Agreements (omitting NCMs for the sake of clarity).

SFTI® Connectivity Principles 

Data Centre Services Agreement

ICE provides data centre services to Euronext from the Basildon site.Specifically, ICE houses the 

data centre equipment in the Data Centre and provides sub-services, such as power, access, 

physical security, environment, fire protection, connectivity, monitoring, support, remote hands,

installation, receiving and warehouse space. The agreement will subsist for an initial term of 

five years, starting April 1st 2014, with automatic renewal for a further five-year period, unless 

notice of termination is provided by either party at least 12 months before expiry of the initial 

term but no earlier than 24 months before the end of the initial term. ICE will guarantee to

continue providing the services for a further two-year period from the date on which notice of 

non-renewal is received. Accordingly, the minimum period for this service is five years. In the 

course of 2015, the agreement has been renegotiated, leading to, under certain conditions, a 

lower price structure, that came into effect January 1st, 2016.

Colocation Agreement

ICE provides co-location services directly to Euronext members on terms that are no worse than 

the terms on which ICE currently provides equivalent co-location services to its members. As 

LCH Clearnet SA NYSE Liffe

NYSE Technologies

ISV / ASPs LCH Clearnet Ltd

Members

3rd Party Suppliers

Quote Vendors

Service Provider Agreement

Service Level Agreement

Clearing Relationship Agreement Service Level Agreement

Supplier Agreements

Trading Platform Agreement Market Rules Tripartite Clearing Agreement Service Provider Agreement Clearing Agreement

Service Provider Agreement

Data Supply Agreement SFTI Connectivity Agreement Market Data Agreement

SFTI Connectivity Agreement Market Data Agreement

Italics = Optional Agreement
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the service is provided to members, there is no services agreement between ICE and Euronext 

but rather a commitment and payment of commission to Euronext by ICE for the right to 

provide the services. This agreement will remain in force for a period of five years, starting

April 1st, 2014, unless terminated earlier with mutual agreement. ICE will commit not to 

increase the pricing, nor reduce the service or performance levels of colocation for the initial 

two-year period to ensure that Euronext customers receive colocation services at an equal (or 

better) standard to that currently provided by Euronext without any adverse price impact. 

Euronext is free to build its own colocation facility after the end of this two-year period if it 

wishes to do so, and in that case ICE will have the right to terminate the agreement on six 

months’ notice.

Connectivity Agreement

Euronext’s customers are connected to the SFTI® network either via an SFTI managed 

connection, a direct connection, or a thirdparty connection. ICE provides application services, 

including logical connections to the relevant Euronext products between the subscriber and 

host infrastructure. ICE agrees to provide the SFTI services to Euronext customers on terms 

(including pricing, service, and performance) that, in the aggregate, are no worse than the 

standard terms on which ICE provides equivalent connectivity services to its customers. This 

agreement will remain in force for five years, starting April 1st, 2014, unless terminated earlier 

with mutual agreement. This agreement contains substantially the same terms as the colocation

agreement.

Market Data Agreement

Participants planning to redistribute Euronext Market Data must enter into and comply with the 

terms of the Market Data Agreement. 

Participants using Market Data for their own purposes, in the course of normal trading 

activities, are licensed to use such data via the Trading Platform Agreement and so do not need 

to enter into a Market Data Agreement.

Service Provider Agreement

Service Providers are required to enter into a Service Provider Agreement which defines the 

terms and conditions under which third party providers may offer technology services in 

relation to the Euronext UTP matching engine.

Trading Platform Agreement

The Trading Platform Agreement, in association with the Rules, governs Members’ behaviour 

and use of the trading platform.

The Trading Platform Agreement acknowledges that:

 the Member wishes to use, and Euronext is willing to license to the Member, certain 

equipment, testing software, specifications and the API necessary to access and trade 

on Euronext UTP, and

 the Member will need to develop, arrange to be developed or license, at its own risk 

and expense, trading software which interfaces with Euronext UTP via FIX or binary 

protocols.
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Before being permitted to trade, a Member must:

 have had an approved communication circuit and connectivity commissioned by 

Euronext and certified ready for use

 have the trading software they intend to use certified as conforming to Euronext’s 

requirements

 have passed the standard market entry test (MET) which is a conformance test 

 have been allocated one or more Individual Trader Mnemonics (ITM), and

 have the means to clear trades either as a member of the Clearing House or as a NonClearing Member (NCM) with a clearing agreement with a General Clearing Member. 

D–1 (2):

The architecture of the systems, including hardware and distribution network, as well as 

any pre- and post-trade risk-management controls that are made available to system 

users.

[Redacted Confidential Text]

Euronext UTP provides multiple outright and strategy order types to enable trades to hedge or 

mitigate their trading risks. 

The main safeguards for the Euronext markets relate to:

 restricting or limiting access to the markets, and 

 controlling activity that occurs on the market, including price limits, volume alerts and 

automated throttles.

Market access

With reference to market access, Section 5.4 of Book I of the Rules provides for Euronext to 

terminate trading sessions or suspend or limit the availability of products/markets as is 

deemed necessary to maintain an orderly market. In the case of suspension, Individual Trading 

Mnemonics (ITMs) can be suspended within minutes at individual, group or Member level. 

Price Limits 

With reference to controlling activity that occurs on the market, the main trading safeguard to 

ensure orderly markets is dynamic price limits which apply across all Euronext markets. These 

include Dynamic Price Limits for futures, Dynamic Spiking Price Limits for futures and Options 

Price Limits. Dynamic Spiking Price limits are applied to Futures Contracts only as these 
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products show greater price movement over short periods of time, and hence the need to 

provide additional controls. 

In addition to Price Limits, functionality exists for the removal of orders from the order book by 

Market Services staff, as well the deletion of trades. Market Services staff are responsible for 

front-line operations and real-time surveillance of all the Exchange’s Contracts.

For bilaterally negotiated futures and options trades, there is automated validation by Market 

Services to confirm that all (matched) orders are within the relevant fair value pricing 

conventions.

Volume Alerts

Rule 8106/4 in Book I requires Members to ensure that they have appropriate controls in place, 

including controls on the size of orders to be submitted to the market.

Notwithstanding the requirements that members have with regard to volume controls over 

orders, Euronext has volume controls which raise alerts if the volume of orders or trades exceed 

configurable settings for each contract. Such alerts are reviewed to assess their impact and 

action is taken accordingly, including referral for further investigation where appropriate.

Automated throttles

[Redacted Confidential Text]

Delta protection 

In addition, Delta protection assists Liquidity Providers in monitoring and management of their 

exposure. Please see Exhibit D–1 for further details. 

D –1 (3):

The security features of the systems.

[Redacted Confidential Text]

D –1 (4):

The length of time such systems have been operating.

Euronext UTP has been in operation within Euronext since 2008.
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Commercially confidential

D –1 (5):

Any significant system failures or interruptions.

Please see Exhibit D–2 (5).

D –1 (6):

The nature of any technical review of the order matching/trade execution system 

performed by the foreign board of trade, the home country regulator, or a third party.

Euronext UTP was subject to detailed regulatory scrutiny by the Euronext College of Regulators 

before the College gave its non-objection of Euronext UTP both for the cash and derivatives 

migrations. Within the College of Regulators, representatives of Euronext’s regulatory 

authorities meet in working groups on a regular basis to coordinate their actions in areas of 

common interest.

The College’s review analysed both the design and the implementation of Euronext UTP.

The College keeps a continuing close regulatory interest in Euronext UTP.

D –1 (7): 

Trading hours.

Euronext’s Trading Hours are from 08:00 hrs CET to 22:00 hrs CET.

The following is an overview of the Trading Day:
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Contracts may be configured with Conditional Opening and those contracts will only move from 

a Pre-Open state to an Open state if an underlying price has been received prior to Open. If no 

underlying price has been received prior to Open, the market will remain in Pre-Open until 

manually opened by Euronext Market Services.

D –1 (8):

Types and duration of orders accepted.

Orders can be of one of the following types:

 Limit orders:

Limit orders execute at the limit price stated or better. Unless otherwise specified, any 

residual volume is retained until withdrawn, traded or cancelled automatically at the 

end of the day).

Contract Unavailable

Time

Logon and subscribe to market permitted

Trading, order handling and settlement

Closed* (until configured Pre-Open time) Pre-Open* Order submission permitted but no trades take place Market Open

Settlement and/or closing prices Market Closed

Trading, order handling and settlement

Pre- Close

Optional Session Change

Session 1

Trading, order handling and settlement

Closed*

Order pulling, downward volume revision and strategy creation allowed (Optional) Restricted

Uncrossing

Contract Available

Contract Unavailable Contract Unavailable *Extended opening for ex-pits can be permitted during Close and Pre-Open

Trading Day Session 1 Trad ni g Day Sess oi n 2

(Optional) Intraday Close Allows a Pre-Open period for GTC submission
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 Market orders:

Market orders execute at the best price available when the order is submitted until all 

volume at that price has been traded. The order then executes at the next best price(s) 

until all the order volume has been filled. Residual volume from an incomplete market 

order is immediately cancelled.

 Market On Open (MOO):

Market On Open (MOO) orders submitted during Pre-Open execute at the calculated 

opening price. Any residual volume from a MOO is converted into a Limit order. After 

the opening of the market, MOOs trade with matching MOOs at the mid-price, with any 

residual volume being converted into a Limit order at the mid-price. If no bid or offer 

price exists at the Market Open, MOO orders are cancelled.

 Mass Quotes:

Liquidity Providers may submit simultaneous bids and offers within a series using Mass 

Quotes submitted in batches of up to 65 bid and offer pairs.

Mass Quotes can only be used by traders with ITMs configured to use them and such 

ITMs cannot use any other order type. Mass Quotes do not persist beyond the relevant 

trading session or after the trader logs out.

A Delta Protection facility offers Liquidity Providers protection against several of their 

quotes being traded simultaneously. Delta protection can be configured at contract level, 

or at both expiry and contract level. Protection can be limited to certain ITMs within a 

contract for which protection is configured. Cumulative delta position protection is 

maintained and updated for Liquidity Providers. Liquidity Providers are warned when 

Delta positions exceed pre-set limits and Mass Quotes exceeding the limit can be 

automatically cancelled. 

Orders can have a number of designations as described below:

 Good Till Cancelled (GTC):

Orders designated as Good Till Cancelled (GTC) remain in the central order book until 

they trade or are withdrawn or at contract expiry.

 Immediate and Cancel (IC):

Orders designated as Immediate and Cancel (IC) execute against any matching orders up 

to the volume of the IC. Any residual volume is immediately cancelled. 

 Complete Volume (CV):

When the designation Complete Volume (CV) is added, an order will execute only if 

sufficient volume is available at the stated price or better. If sufficient volume is not 

available to execute the order in full, the entire order is cancelled.

 Minimum Volume (MV):
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Where an order is designated Minimum Volume (MV), a minimum volume is executed 

immediately or the whole order is cancelled. If the minimum volume is executed, and 

remaining volume is retained without any further minimum volume constraint. 

The following features apply to orders:

 Orders can be submitted singly or (subject to contract restrictions) in batches. When an 

order is submitted to the Matching Engine, it is considered firm once the engine has 

checked and time stamped it.

 Order details must include: the price; the contract month, series or strategy; the order 

type; and the volume to be bought or sold at that price. 

 Orders that do not trade to completion and are not of a type that require immediate 

completion are stored in the central order book.

D –1 (9):

Information that must be included on orders.

As stated in Exhibit D –1(8) above, the following information must be included on orders:

 the price

 the contract month, series or strategy

 the order type, and 

 the volume to be bought or sold at that price. 

In addition, Rule 8301/3 of Book I states that order records must contain the following 

information and any additional information required by the relevant market operator.

“8301/3 Order records must contain the orders data listed in the annex of the Delegated 

Regulation (EU) 2017/580 and any additional information required by the Relevant Euronext 

Market Undertaking.”

Under MIFID2 regime, the usual order identifiers are supplemented by various information 

relevant to market supervision such as the capacity of direct electronic access or use of 

algorithmic trading by the order giver.
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D –1 (10):

Trade confirmation and error trade procedures.

Trade confirmation:

Once a trade has been executed in the trading system, the traders receive immediate 

confirmation over the CCG. 

The derivatives clearing platform sends the trade data and referential details to LCH SA, via a 

trade gateway, for position keeping, clearing and settlement of trades.

Daily files of the previous day’s trading are submitted to the relevant regulator.

Maintenance and clearing functions enable customers to co-ordinate their trading, settlement, 

margining and risk management positions within a single platform.

Error trade procedures:

In Book I, Rule 5403/3 governs trade cancellations and states that:

“5403/1 A Transaction made or purported to be made may be declared invalid by the 

Relevant Euronext Market Undertaking in the circumstances set out in Book II of 

the Rules or in the Trading Procedures.

5403/2 A transaction made in error in designated Derivatives may be declared invalid 

by the Relevant Euronext Undertaking subject to the conditions set out in Book 

II of the Rules or in the Trading Procedures.”

In addition, Euronext Market Services in Paris and Amsterdam have the ability through UTM to 

delete erroneous trades. Following investigation and recording of erroneous trade details 

Euronext Market Services may instigate a trade deletion. Details of all trade deletions are 

recorded and monitored for trends.

D –1 (11):

Anonymity of participants.

Traders submit trades on an anonymous basis and a trader does not know the identity of a 

trader with whom he has matched on the order book.

Anonymity is retained throughout the trading and clearing cycle. 
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D –1 (12):

Trading system connectivity with clearing system.

The derivatives clearing platform allows complete post trade processing by Members’ back 

offices and provides various facilities, including allocation, registration and give-ups of trades. 

The registration functionally is extended through the provision of position maintenance and 

clearing functions, enabling customers to co-ordinate their trading, settlement, margining and 

risk management positions within a single platform.

[Redacted Confidential Text]

D –1 (13):

Response time.

In excess of 99% of transactions are processed in less than 25 ms within the trading engine.

D –1 (14):

Ability to determine depth of market.

Traders receive information about a given contract, contract month, series, or strategy through 

XDP. Traders subscribe to the contract, contract month, or individual market via XDP. 

Traders can also submit orders and requests for quotes via the CCG to any market and receive 

trade confirmations on orders without subscribing to the market in question. 

When subscribing to XDP, traders can choose whether or not to receive notices or requests for 

quotations from the market. 

Traders can subscribe at one of three levels:

 Product: All outrights in, or strategies with a leg in, a given product

 Expiry Month level: All outrights in, or strategies with a leg in, a given expiry month, 

for a given commodity, or
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 Market level: A given outright, or a specific strategy in a given commodity (specifying 

the Automated Market Reference value). 

After receiving a subscription to a market, the Matching Engine acknowledges the request and 

immediately returns two pieces of information via XDP: 

 the market-mode status, which reports whether the market is open for trading or not, 

and

 the chosen market information, which may be best bid and offer or full market depth, 

providing prices and respective aggregate volumes available for buy and sell orders in 

that market at the time.

XDP is configured to provide market data at two discrete levels: Level 1 – Top of Book; and 

Level 2 - Full Depth. This data is available to users through a subscription to a specific XDP 

market data channel, for example for Equity & Index related products. A Member subscribes to 

one or more of the channels broadcast by XDP. It is also possible to configure XDP to broadcast 

customised channels of data although to date the need for these customised channels has not 

arisen. 

Depending on the level of data subscription, XDP provides the following information:

 Warnings of ‘market mode changes’ (e.g. open and close, fast market, and price limits 

suspended)

 ‘Market information’ of best buy and sell prices and the aggregate volumes available at 

those prices, as well as traded price and volume information

 ‘Order book and market updates’, whenever there is a change in the central order book 

affecting prices or aggregate volumes.

When a market closes, traders subscribing to that market receive indicative closing prices or 

settlement price information. Traders can stop receiving market update information at any time 

by exiting the market via the front end trading application.

D –1 (15):

Market continuity provisions.

Euronext’s Business Continuity Planning (managed by the Business Continuity Management 

Team – BCMT) and Disaster Recovery processes and procedures (managed by Information 

Technology – IT) are used to manage unplanned events.

A Market Status report is included on the website and updated immediately with any marketwide updates.
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Business Continuity and Disaster Recovery:

Resilience for Euronext UTP is provided for by a dual Data Centre strategy whereby network 

and other technology infrastructure are fully replicated. Either Data Centre can run all aspects 

of all services necessary to operate the markets.

The physical core of Euronext’s business continuity arrangements consist of:

 two complete and physically separate Data Centres, with live services being able to be 

run from either or both simultaneously

 systems typically designed using a high availability approach

 a resilient data network, and

 business continuity sites that are capable of supporting all core business operations 

and IT Global Service Delivery. 

As stated above, there are two complete and physically separate Data Centres with live services 

being able to be run from either or both simultaneously. This means that the matching engine 

can be run from Data Centre 1 and the tools used to monitor and control the markets from Data 

Centre 2 with no material degradation in either performance or control. However, for those 

Members that utilise co-location facilities, these are only made available in the primary Data 

Centre, and the Members are aware that they must make separate provision to access the 

market via a standard connection should DR be invoked.

Euronext’s dedicated business continuity team works in conjunction with line managers and is 

responsible for the development, implementation, testing and maintenance of business 

continuity and emergency response plans.

Business Continuity processes are continually validated via simulated events, such as:

 Regularly testing workspace recovery at recovery sites to ensure continuity of 

operations

 Participating in the Market Wide Exercises overseen by authorities 

 Exercising the Crisis Management Team regularly through table-top exercises and 

role rehearsals

 Conducting an annual review of Business Impact Analyses and Business Continuity 

Plans

 Maintaining a staff awareness and induction programme – a continuous programme 

to ensure all staff know their Business Continuity role. Compulsory training in BCM 

for all staff is being rolled out.
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 Conducting regular technical recovery exercises to prove that systems and 

applications are able to recover in line with business expectations

 In conjunction with the Clearing House, conducting periodic joint recovery exercises 

from independent recovery sites

 Maintaining a Business Continuity regime, and meeting regularly with the Business 

Continuity Steering Group and Departmental Business Continuity Coordinators

 Maintaining the capability for Remote Access (e.g. home working) to counter the 

threat of loss of staff through wide scale disruption, and

 Conducting training, familiarisation and validation activities.

A range of approaches is used from desktop / scenario exercises through to full scale 

invocations on normal trading days involving business and IT operations.

In the event of a wide-reaching failure or crisis, Business Continuity and Crisis Management 

processes are invoked. People, processes and technology are managed in concert to bring about 

an effective response to the crisis at hand. Activity is overseen by the executive and facilitated 

by the BCMT. 

The executive prioritise and direct the activities of the emergency teams: Damage Assessment, 

Facilities, IT, HR, Security and Communications. The executive stand down only after an 

acceptable level of “business as usual” operation has been resumed. At this point any 

outstanding issues would be managed within normal line management.

Disaster Recovery:

Euronext operates the market and supporting services from its two Data Centres. Systems

required to operate the UTP market are replicated onto the secondary data center.

Network connections between the Data Centres are diversely routed providing multiple 

connections to services. The Data Centres are additionally connected via two high bandwidth 

channels, a primary and backup, each procured from separate vendors providing resilience to a 

single circuit or an underlying vendor network failure.

The invocation of Disaster Recovery is a logical extension of the Crisis Management Process and 

necessitates a higher level of management involvement, decision and control. 

The Disaster Recovery Plan is regularly rehearsed and supports actual invocation under the 

following conditions:

 Major loss of physical or logical access to Networks

 Major loss of physical or logical access to the Data Centres housing the UTP services
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 Major loss of physical or logical access to Euronext Market Services, and/or

 Major loss of physical or logical access to Technical Operations Production Centre.

Like Business Continuity, Disaster Recovery processes are continually validated via simulated 

events, such as those referred to above.

D –1 (16):

Reporting and recordkeeping requirements.

An investment firm that has executed transactions in financial instruments admitted to trading 

on a regulated market shall disclose the details of these transactions to the Authority for the 

Financial Markets as soon as possible and by the end of the following working day at the latest. 

Since January 2018, when MiFIR became effective, operators of trading venues are required to 

keep at the disposal of the competent authority, for at least five years, the relevant data relating 

to all orders in financial instruments which are advertised through their systems (MiFIR art. 25 

sub 2).As per EU delegated regulation 2017/580, the market operator shall store for five years 

all orders received from exchange members according to standards uniformally applicable all

over the European Economic Area.

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EXHIBIT D: THE AUTOMATED TRADING SYSTEM

D–2:

A description of the manner in which the foreign board of trade assures the following

with respect to the trading system, separately labeling each description:

(1) Algorithm. The trade matching algorithm matches trades fairly and timely.

(2) IOSCO Principles. The trading system complies with the Principles for the Oversight of 

Screen-Based Trading Systems for Derivative Products developed by the Technical 

Committee of the International Organization of Securities Commissions (IOSCO 

Principles). Provide a copy of any independent certification received or self-certification 

performed and identify any system deficiencies with respect to the IOSCO Principles.

(3) Audit Trail.

(i) The audit trail timely captures all relevant data, including changes to orders.

(ii) Audit trail data is securely maintained and available for an adequate time period.

(4) Public Data. Adequate and appropriate trade data is available to users and the public.

(5) Reliability. The trading system has demonstrated reliability. 

(6) Secure Access. Access to the trading system is secure and protected.

(7) Emergency Provisions. There are adequate provisions for emergency operations and 

disaster recovery.

(8) Data Loss Prevention. Trading data is backed up to prevent loss of data.

(9) Contracts Available. Mechanisms are available to ensure that only those futures, 

option or swap contracts that have been identified to the Commission as part of the 

application or permitted to be made available for trading by direct access pursuant to the 

procedures set forth in § 48.10 are made available for trading by direct access.

(10) Predominance of the Centralized Market. Mechanisms are available that ensure a 

competitive, open, and efficient market and mechanism for executing transactions.

-----------------------

D–2
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D–2 (1):

Algorithm. The trade matching algorithm matches trades fairly and timely.

Euronext’s Universal Trading Platform (Euronext UTP) features a number of recognised trading 

algorithms which provide a fair and active market in listed contracts. 

The Matching Engine matches orders in the central order book with priority being determined 

by price and time (Price / Time Priority):

 Where orders have an equal price, priority is given to the earliest order entered at that 

price.

 For price priority, the highest bid or lowest offer has priority over other orders in the 

same market.

 For time priority, older orders have priority over more recent orders at the same price 

and will trade according to the time that they were accepted by the Matching Engine.

The data distribution component, Exchange Data Publisher (XDP), distributes essential trading 

data in a fair and equitable manner to all eligible market participants ensuring there is no 

disadvantage when receiving information or submitting and executing orders. The primary 

function of XDP is to manage the distribution of specific contract data (e.g. prices and volumes) 

to participants who have elected to receive such information.

XDP employs Reliable Multicast technology to ensure that pertinent market data is transmitted 

simultaneously to each eligible recipient.

The equitability requirement excludes delays caused by the following: 

 Any failure condition either directly or indirectly affecting the Member

 Capacity levels being exceeded

 Excessive traffic submitted by one or more ITMs or by automated facilities behaving 

outside the set conformance criteria, e.g. over-subscription, multiple logons;

 Transmission over the Internet, member networks or other network services not 

supported by Euronext or outside of the Euronext service domain.
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D–2 (2):

IOSCO Principles. The trading system complies with the Principles for the Oversight of 

Screen-Based Trading Systems for Derivative Products developed by the Technical 

Committee of the International Organization of Securities Commissions (IOSCO Principles). 

Provide a copy of any independent certification received or self-certification performed and 

identify any system deficiencies with respect to the IOSCO Principles.

 

In June 1990, IOSCO’s Working Party No. 7 produced 10 Suggested Principles for the Oversight 

of Screen Based Trading Systems for Derivative Products. Euronext complies fully with the

Principles.

ESMA, the European Securities and Markets Authority, issued “Guidelines on systems and 

controls in an automated trading environment for trading platforms, investment firms and 

competent authorities” on 24 February 2012. The Guidelines explain the existing MiFID and 

Market Abuse Directive requirements and are a codification of existing best practice. The 

Guidelines entered into force on 1 May 2012 and apply to all of the Euronext derivative markets.

A schedule describing the Euronext derivative markets’ compliance with the ESMA Guidelines 

has been submitted to the Euronext College of Regulators in Europe.

Besides, the Euronext College of Regulators has recently re-assessed Euronext’s position by 

reference to new MIFID2 standards, which have reinforced and codified previous principles of 

controls for automated trading. Namely, EU delegated regulation 2017/584 now requires 

operators of any organised trading venues to implement regulatory standards to avoid 

disorderly trading conditions that could arise from algorithmic trading, including conformance 

testing.

The following schedule maps the IOSCO Principles and the relevant MiFID requirements, 

associated ESMA Guideline(s) and other provisions:

# Principle Equivalent provision / response

1 The system sponsor should be able to 

demonstrate to the relevant 

regulatory authorities that the system 

meets and continues to meet 

applicable legal standards, regulatory 

policies, and/or market custom or 

ESMA Guideline4 1, General guideline:

“1. A regulated market’s or multilateral trading 

facility’s electronic trading system (or systems) 

shall ensure that it complies with applicable 

obligations under MiFID and other relevant Union 

 

4

ESMA - Guidelines on Systems and Controls in an Automated Trading Environment For Trading Platforms, 

Investment Firms and Competent Authorities – 22 December 2011
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practice where relevant. and national law taking into account technological 

advancements and trends in the use of technology 

by its members/participants or users. In 

particular, the system (or systems) should be well 

adapted to the business which takes place through 

it (or them) and is (or are) robust enough to 

ensure continuity and regularity in the 

performance of the automated market (or 

markets) operated by the market operator or 

investment firm.”

ESMA Guideline 4, General guideline:

“1. Investment firms must have policies and 

procedures to ensure that their automated trading 

activities, including where they are providing 

DMA or SA, on trading platforms comply with 

their regulatory requirements under MiFID and 

other relevant Union and national laws and, in 

particular, and that they manage the risks relating 

to those trading activities.”

ESMA Guideline 4, Detailed guideline (2) d):

“Consistency with the regulatory and legal 

framework

- The electronic systems of investment firms, and 

the orders these generate, should be consistent 

with the firm’s obligations under MiFID, or other 

relevant Union or national legislation, or under 

the rules of the RM or MTF to which the order is to 

be sent (including rules relating to fair and 

orderly trading). “

2 The system should be designed to 

ensure the equitable availability of 

accurate and timely traded and 

quotation information to all system 

participants and the systems sponsor 

should be able to describe to the 

relevant regulatory authorities the 

processing, prioritization, and display 

of quotations within the system. 

MiFID2 Level 1 Article 14:

“ [...]

2. Member States shall require that investment 

firms or market operators operating an MTF 

establish transparent rules regarding the criteria 

for determining the financial instruments that can 

be traded under its systems.

Member States shall require that, where 

applicable, investment firms or market operators 

operating an MTF provide, or are satisfied that 
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there is access to, sufficient publicly available 

information to enable its users to form an 

investment judgement, taking into account both 

the nature of the users and the types of 

instruments traded.”

3 The system sponsor should be able to 

describe to the relevant regulatory 

authorities the order execution 

algorithm used by the system i.e., the 

set of rules governing the processing, 

including prioritization, and execution 

of orders. 

MiFID Level 1 Article 14:

“1. Member States shall require that investment 

firms or market operators operating an MTF, in 

addition to meeting the requirements laid down in 

Article 13, establish transparent and nondiscretionary rules and procedures for fair and 

orderly trading and establish objective criteria for 

the efficient execution of orders. [...]”

4 From a technical perspective, the 

system should be designed to operate 

in a manner which is equitable to all 

market participants and any 

differences in treatment among 

classes of participants should be 

identified. 

ESMA Guideline 3, Detailed guideline 2 (b):

“IT compatibility

Trading platforms should have standardised 

conformance testing to ensure that the systems 

that members and participants are using to access 

the platform have a minimum level of 

functionality that is compatible with the trading 

platforms’ electronic trading system and will not 

pose a threat to fair and orderly trading on the 

platform.”

5 Before implementation, and on a 

periodic basis thereafter, the system 

and system interfaces should be 

subject to an objective risk 

assessment to identify vulnerabilities 

(e.g., the risk of unauthorised access, 

internal failures, human errors, 

attacks, and natural catastrophes) 

which may exist in system design, 

development, or implementation. 

ESMA Guideline 1, Detailed guideline 2 (e):

“ Monitoring and review

[....]

- In order to ensure that trading platforms remain 

continually effective, the operators of these 

trading platforms should periodically review and 

evaluate their electronic trading systems, and 

associated process for governance, accountability 

and sign-off and associated business continuity 

arrangements. They should act on the basis of 

these reviews and evaluations to remedy 

deficiencies. The review and evaluation process 

should have some degree of independence which 

can be achieved, for example, by the involvement 

of internal audit or third parties.”

ESMA Guideline 1, Detailed guideline 2 (f):
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“Security 

- Trading platforms should have procedures and 

arrangements for physical and electronic security 

designed to protect their electronic trading 

systems from misuse or unauthorised access and 

to ensure the integrity of the data that is part of or 

passes through the systems.”

ESMA Guideline 2, Detailed guideline 2 (c):

“ Business Continuity 

- Investment firms should have adequate, 

reasonable and effective business continuity 

arrangements in relation to their electronic 

trading systems to cover disruptive incidents 

(which, as necessary, can ensure a timely 

resumption of trading) including but not limited 

to system failures, as the arrangements should 

cover, as appropriate, matters such as: 

a. Governance for the development and 

deployment of the arrangements; 

b. Consideration of an adequate range of possible 

scenarios related to the operation of their 

electronic trading systems which require specific 

continuity arrangements; 

c. The backing up of business (including 

compliance) critical data that flows through their 

electronic trading systems; 

d. The procedures for moving to and operating the 

electronic trading system from a back-up site; 

e. Staff training on the operation of the 

arrangements and individuals’ roles within them; 

and 

f. An on-going programme for the testing, 

evaluation and review of the arrangements 

including procedures for modification of the 

arrangements in light of the results of that 

programme.”
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6 Procedures should be established to 

ensure the competence, integrity, and 

authority of system users, to ensure 

that system users are adequately 

supervised, and that access to the 

system is not arbitrarily or 

discriminatorily denied. 

ESMA Guideline 3, Detailed guideline 2d):

“ Trader access and knowledge

Trading platforms should have standards covering 

the knowledge of persons within 

members/participants and users who will be 

using order entry systems.”

ESMA Guideline 3, Detailed guideline 2d):

“ Limits to access and intervention on 

transactions. 

- Trading platforms should have the ability to 

prevent in whole or in part the access of a 

member or participant to their markets and to 

cancel, amend or correct a transaction. The rules 

and procedures for cancelling, amending or 

correcting trades should be transparent to 

members/participants and users of the regulated 

market or multilateral trading facility.”

MiFID Level 1, Recital (47):

“Investment firms should all have the same 

opportunities of joining or having access to 

regulated markets throughout the Community. 

Regardless of the manner in which transactions 

are at present organised in the Member States, it 

is important to abolish the technical

and legal restrictions on access to regulated 

markets.

MiFID Level 1, Article 14:

“4. Member States shall require that investment 

firms or market operators operating an MTF 

establish and maintain transparent rules, based 

on objective criteria, governing access to its 

facility. These rules shall comply with the 

conditions established in Article 42(3).”
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7 The relevant regulatory authorities 

and the system sponsor should 

consider any additional risk 

management exposures pertinent to 

the system, including those arising 

from interaction with related financial 

systems. 

MiFID Level 1, Article 39:

“Member States shall require the regulated 

market:

(a) [...]

(b) to be adequately equipped to manage the risks 

to which it is exposed, to implement appropriate 

arrangements and systems to identify all 

significant risks to its operation, and to put in 

place effective measures to mitigate those

risks; [...]”

8 Mechanisms should be in place to 

ensure that the information necessary 

to conduct adequate surveillance of 

the system for supervisory and 

enforcement purposes is available to 

the system sponsor and the relevant

regulatory authorities on a timely 

basis. 

ESMA Guideline 5, Detailed guideline 2b):

“Monitoring 

- Trading platforms should at least have systems 

(including automated alert systems on 

transactions and orders) with sufficient capacity 

to accommodate high frequency generation of 

orders and transactions and low latency 

transmission, in order to monitor, using a 

sufficient level of time granularity, orders entered 

and transactions undertaken by 

members/participants and users and any 

behaviour which may involve market abuse (in 

particular market manipulation, including, where 

the trading platform has sight of this, crossmarket behaviour) and with the ability to trace 

backwards transactions undertaken by 

members/participants and users as well as orders 

entered/cancelled which may involve market 

manipulation.”

ESMA Guideline 6, General guideline:

“1. Investment firms should have policies and 

procedures in place to minimise the risk that their 

automated trading activity gives rise to market 

abuse (in particular market manipulation). [...]”

ESMA Guideline 6, Detailed guideline 2 c):

“Monitoring activity

- Investment firms should monitor the activities of 

individuals/algorithms trading on behalf of the 

firm and the trading activities of clients, taking 
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account of orders submitted, modified and cancelled as well as transactions executed. This 

should involve having adequate systems in place 

(including automated alert systems), using a 

sufficient level of time granularity, to flag any 

behaviour likely to give rise to suspicions of 

market abuse (in particular market manipulation), 

including (where the firm has sight of this) crossmarket behaviour.”

ESMA Guideline 6, Detailed guideline 2 d):

“Arrangements for the identification and 

reporting of suspicious transactions and orders

- Investment firms should have arrangements to 

identify transactions, and it is recommended that 

these arrangements also cover orders, that 

require a STR to competent authorities in relation 

to market abuse (in particular market 

manipulation) and to make those reports without 

delay (if initial enquiries are undertaken, a report 

should be made as soon as possible if those 

enquiries fail to find a satisfactory explanation for 

the observed behaviour).”

9 The relevant regulatory authorities 

and/or the system sponsor should 

ensure that the system users and 

system customers are adequately 

informed of the significant risks 

particular to trading through the 

system. The liability of the system 

sponsor, and/or the system providers 

to system users and system customers 

should be described, especially any 

agreements that seek to vary the 

allocation of losses that otherwise 

would result by operation of law. 

Exclusion of liability is covered in Book I of the 

Euronext Rule Book:

“Rule 1601

Euronext Market Undertakings are required, 

pursuant to National Regulations, to:

(i) have clear and transparent Rules which (a) 

provide for fair and orderly trading and establish 

objective criteria for the efficient execution of 

orders; and (b)ensure that any Financial 

Instruments admitted to trading are capable of 

being traded in a fair, orderly and efficient 

manner;

(ii) establish and maintain effective arrangements 

and procedures for the regular monitoring of the 

compliance with the Rules by Members and 

Issuers; and
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(iii) monitor the activity undertaken by Members 

in order to identify breaches of the Rules, 

disorderly trading conditions or conduct that may 

involve market abuse.

Rule 1602 

Euronext wishes to draw the following statement 

to the attention of Members and Issuers. In 

pursuit of Euronext’s responsibilities as an 

operator of regulated markets including those 

referred to under Rule 1601, there are a number 

of actions which may or may not be undertaken by 

Euronext, whether as a result of Euronext’s own 

determination or at the request of a Member, 

Issuer or the relevant Competent Authority. Some 

of these actions are listed below, without 

limitation:

(i) the suspension or restriction in some way of 

business on any of the Euronext Markets pursuant 

to Rule 4403 and/or Rule 5402;

(ii) the closure for any period of any of the 

Euronext Markets pursuant to Rule 4403 and/or 

Rule 5401;

(iii) the cancellation of trade(s) on any of the 

Euronext Markets pursuant to Rule 4403 and/or 

Rule 5403;

(iv) any investigation, audit or check in respect of 

a Member or an Issuer to ensure compliance with 

the Rules pursuant to Rules 9.2, 6107 and/or 

6901; and

(v) the suspension of membership rights and/or 

termination of membership pursuant to Rule 2.8 

and/or Rule 9.3.

This may result in the inability of one or more 

Members and, through such Members, one or 

more Clients, to enter into Transactions.
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Rule 1603 

Unless otherwise expressly provided in the Rules 

or in any other agreement between Euronext and 

a Member or an Issuer, Euronext shall only be 

liable for fraud, gross negligence and wilful 

misconduct where there is a finding of such by a 

court of competent jurisdiction and shall not 

otherwise be liable.

Rule1604 

Members are required to draw the statements in 

Rules 1602 and 1603 to the attention of their 

Clients.

Rule 1605

For the purposes of this Rule 1.6, references to 

“Euronext” shall include any officers, employees, 

agents and representatives of Euronext.”

10 Procedures should be developed to 

ensure that the system sponsor, 

system providers and system users 

are aware of and will be responsive to 

the directives and concerns of 

relevant regulatory authorities. 

ESMA Guideline 4, Detailed guideline 2e):

“ Reporting obligations to supervisory 

arrangements 

- Investment firms should inform competent 

authorities, in line with the supervisory 

arrangements that exist in their Member State, 

about significant risks that may affect fair and 

orderly trading and major incidents where those 

risks crystallise.”
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D–2 (3):

Audit Trail.

(i) The audit trail timely captures all relevant data, including changes to orders.

(ii) Audit trail data is securely maintained and available for an adequate time period.

[Redacted Confidential Text]

D–2 (4):

Public Data. Adequate and appropriate trade data is available to users and the public.

Within the Exchange Data Publisher (XDP), the Real Time Publisher provides the core market 

data publishing service for users. The publisher receives data from the Matching Engine and 

distributes that data to all users who have subscribed to the XDP service. 

Data is streamed in FIFO sequence to all subscribers and segmented into channels such that a 

subscriber may receive only to the channel or channels he is interested in. XDP publishes full 

depth of market aggregated at each price level.

Exhibit D–1 describes XDP further.

Real-time market data is made available by Euronext to a range of Quote Vendors who publish 

the data to their subscribers. Such Quote Vendors include Reuters and Bloomberg.

D–2(5):

Reliability. The trading system has demonstrated reliability. 

Monthly Availability of the UTP Trading Platform was 100,00% over 2017.

For the record, two incidents had occurred in 2016.

[Redacted Confidential Text]

D–2 (6):

Secure Access. Access to the trading system is secure and protected.
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Euronext allocates an Individual Trader Mnemonic (ITM) to each Responsible Person. Traders’

connections to the trading system are validated according to the combination of the 

membership mnemonic and the ITM. Each instance of the CCG is configured with a valid list of 

membership mnemonics and ITM combinations.

When a user connects to a CCG, the membership mnemonic and ITM combination is checked 

and any connections which are not accepted are logged by the CCG. 

Euronext captures each order submission, revision or pull submitted by a trader, whether or not 

it subsequently trades. Each trader control message is also captured, for example a trader’s 

login, logout, disconnection, nominate replacement trader or setting of delta limits.

Responsible Person details are registered in the Matrix-D Referential Data system. This 

database holds details of Member eligibility and rights. Within Matrix-D , a membership flag is 

set to determine contracts that may be traded by Members, and specifically by US based 

Members. This flag is used by the Trading Engine gateways and market data system to preclude 

certain contracts from being traded. 

Each Responsible Person within a Member organisation has one or more ITM(s) and traders 

who are not Responsible Persons may only submit orders for Derivatives under the ITM(s) of a 

Responsible Person registered to the Member or for Securities under the general authority of 

the Responsible Person.

Euronext therefore assures security of access by a Responsible Person to the trading system.

Members are required to implement suitable security measures for passwords and security 

keys so that only authorised individuals may gain access to trading.

In addition, numerous methods are used at various points throughout the solution chain to 

maintain data integrity. 

At key points, the solution performs data validation routines to reject invalid or inappropriate 

data. 

Additionally, as data passes through the processing chain, further checks ensure that the 

content remains both valid and consistent.

Key data types that are subject to this validation are:

 Static data / referential data, which is persisted throughout the trading day (e.g. 

Product / Participant records)

 Volatile data, which changes throughout the trading day due to events and actions 

performed during the trading day e.g. market prices, and 

 Derived data, which is created as a result of previous events triggering a new data. 
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D–2 (7):

Emergency Provisions. There are adequate provisions for emergency operations and 

disaster recovery.

Please see Exhibit D–1 for an overview of Euronext’s Business Continuity and Disaster Recovery 

arrangements.

[Redacted Confidential Text]

Please see Exhibit D–1 for an overview of the disaster recovery provisions.

D–2 (8):

Data Loss Prevention. Trading data is backed up to prevent loss of data.

Trading and Referential Data is backed up using incremental and full backup regime. Relevant 

data is stored for five years. 

D–2 (9):

Contracts Available. Mechanisms are available to ensure that only those futures, option or 

swap contracts that have been identified to the Commission as part of the application or 

permitted to be made available for trading by direct access pursuant to the procedures

set forth in § 48.10 are made available for trading by direct access.

These following Euronext Amsterdam products are currently made available in the United 

States:

 AEX Index Futures

 AEX Index Mini Future

 AEX Dividend Index Future

 Euro/U.S. Dollar Futures

 British Pound/U.S. Dollar Futures

 Skimmed Milk Powder

 Sweet Whey Food Grade Powder

 Unsalted Lactic Butter
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 British Pound/Euro Futures

 Morningstar Eurozone 50 Index Future

There are no swap contracts currently made available for trading in the Euronext Amsterdam 

market.

Only Members and their Affiliate(s) will have direct access to the trading system or products 

from the US.

Euronext will not provide, and will take all reasonable steps to prevent, third parties from 

providing direct access5 to the FBOT. This means that Members from the US must be specifically 

permitted by Euronext to enter trades directly into the order matching and trade entry system.

Euronext will restrict direct access to members in the US by means of hardware, password 

control, and other similar physical or electronic security measures. Access is limited by trader 

keys to those products for which Euronext has obtained no-action relief. Through the trader 

keys, Euronext is able to identify the location of the trader and so can monitor compliance with 

CFTC restrictions.

D–2 (10):

Predominance of the Centralized Market. Mechanisms are available that ensure a 

competitive, open, and efficient market and mechanism for executing transactions.

Market competitiveness is ensured through a combination of anonymised bid/offer, the price 

time algorithm and Liquidity Providers’ obligations.

Since speed of execution is a key determinant in the success or otherwise of an electronic 

exchange, market performance is constantly monitored. 

Real time and trade day +1 tools are utilised to ensure the lowest levels of latency are 

experienced by participants in the market. Performance data is collected in real time and 

analysed:

 Real time

 Trade day +1

 Monthly, and 

 Annually.

 

5

As defined in the Commodity Exchange Act (CEA) and the CFTC’s final regulations, direct access means an explicit grant of 

authority by an FBOT to an identified member or other participant located in the US to enter trades directly into the trade matching 

system of the FBOT. It does not constitute direct access if the order is sent by a person in the US by means of an automated order 

routing system (AORS) to an intermediary located outside of the US for further action or to pass through an order entry or risk 

management filter at the intermediary prior to reaching the trade matching engine.
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There is no set percentage of trading which is mandated to take place in the central order book 

but centralized trading is encouraged through the appointment of Liquidity Providers and 

through specifying conditions under which Members execute trades outside the order books.

This underpins the importance of the central market.

For example, Euronext has a regime which permits Block Trades to be executed in derivatives 

only provided that certain conditions are met. In particular, this regime limits and controls the 

circumstances in which trades can be effected outside the central order book.

Under MIFID2, Block Trades are called “Large-in-scale Trades”, wording used hereafter.

Large-in-scale Trade thresholds meet the minimum required by MIFID2 where appropriate and 

are set sufficiently high by Euronext so as to avoid cannibalisation of the central market by 

limiting the facility to trades too large to be executed easily through the central order book.

The following criteria apply to Large-in-scale Trades:

 they must be executed by a Large-in-scale Trade Executing Member who holds the 

appropriate trading right in the relevant Large-in-scale Trade Contract

 in accordance with Trading Procedure, Large-in-scale Trades may be transacted only in 

Exchange Contracts which have been designated for that purpose (as set out in Annexe 

One to the Trading Procedures), and 

 pursuant to Trading Procedure, Members should ensure that the price of a Large-inscale Trade represents a fair value for that trade. 

For Large-in-scale Trade Contracts in which a market maker participation right exists, the 

designated market maker is entitled, on an all-or-nothing basis, to participate in the Facilitating 

Side of any Large-in-scale Trade in his designated Large-in-scale Trade Contract.

The Large-in-scale Trade Executing Member must submit details of the Large-in-scale Trade to 

the Exchange within 15 minutes.

As set out in Trading Procedures, the Exchange checks the validity of the Large-in-scale Trade 

details and, if appropriate, authorises execution of the Large-in-scale Trade. 

Large-in-scale Trades are then published with a distinguishing marker.

By operating the Large-in-scale Trade regime, Euronext permits trades to be executed outside 

the central order book provided that the criteria in the Trading Procedures are satisfied.
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EXHIBIT E: TERMS AND CONDITIONS OF CONTRACTS TO BE MADE AVAILABLE IN THE US

E–1:

A description of the terms and conditions of futures, option or swap contracts intended to 

be made available for direct access. With respect to each contract, indicate whether the 

contract is regulated or otherwise treated as a futures, option or swap contract in the 

regulatory regime(s) of the foreign board of trade’s home country.

The contracts available in the US are as follows:

# Contract Regulated as

1 AEX Index Futures Futures

2 AEX Index Mini Future Futures

3 AEX Dividend Index Future Futures

4 Euro/U.S. Dollar Futures Futures

5 British Pound/U.S. Dollar Futures Futures

6 Skimmed Milk Powder Futures

7 Sweet Whey Food Grade Powder Futures

8 Unsalted Lactic Butter Futures

9 British Pound/Euro Futures Futures

10 Morningstar Eurozone 50 Index Future Futures

Contract Specifications, prospectuses or Technical Specifications (as the case may be) are 

included in Appendix 4.

No swap contracts are currently made available.

-----------------------

E–1
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EXHIBIT E: TERMS AND CONDITIONS OF CONTRACTS TO BE MADE AVAILABLE IN THE US

E–2:

Demonstrate that the contracts are not prohibited from being traded by United States 

persons, i.e., the contracts are not prohibited security futures or single stock contracts or 

narrow-based index contracts. For non narrow based stock index futures contracts, 

demonstrate that the contracts have received Commission certification pursuant to the 

procedures set forth in § 30.13 and Appendix D to part 30 of this chapter.

Euronext will not allow direct access to trading by US persons in any equity or index options, 

narrow-based index products, single stock futures or single stock dividend futures.

Euronext will only allow direct access from the US in respect of equity-related products which 

are index products and which:

1. meet the requirements to qualify as a broad-based index pursuant to the Commodity 

Exchange Act, and

2. have received no-action relief from the CFTC for offer or sale to US persons.

The list of products which Euronext will make available to US persons is contained in Exhibit 

D–2.

Of these, the equity-related products and the dates of their respective no-action relief letters are 

the following:

# Contract Date of no-action relief

1 AEX Index Futures 26 August 2005 

2 AEX Index Mini Future 21 August 2013

3 Euro/U.S. Dollar Futures 26 August 2005 

4 British Pound/U.S. Dollar Futures 21 August 2013

5 Morningstar Eurozone 50 Index Future 20 March 2018

-----------------------

E–2
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EXHIBIT E: TERMS AND CONDITIONS OF CONTRACTS TO BE MADE AVAILABLE IN THE US

E–3:

Demonstrate that the contracts are required to be cleared.

The requirement for Contracts to be cleared is stated in the Contract information on the website 

(www.euronext.com) and specifies the applicable Clearing House, which is LCH SA for all 

Euronext Amsterdam Contracts.

-----------------------

E–3
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EXHIBIT E: TERMS AND CONDITIONS OF CONTRACTS TO BE MADE AVAILABLE IN THE US

E–4:

Identify any contracts that are linked to a contract listed for trading on a United Statesregistered entity, as defined in section 1a(40) of the Act. A linked contract is a contract 

that settles against any price (including the daily or final settlement price) of one or more 

contracts listed for trading on such registered entity.

The FBOT has no contracts that are linked to a contract listed for trading on a United Statesregistered entity, as defined in section 1a(40) of the Act. 

-----------------------

E–4
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EXHIBIT E: TERMS AND CONDITIONS OF CONTRACTS TO BE MADE AVAILABLE IN THE US

E–5:

Identify any contracts that have any other relationship with a contract listed for trading 

on a registered entity, i.e., both the foreign board of trade’s and the registered entity’s

contract settle to the price of the same third party-constructed index.

The FBOT has no contracts that have any other relationship with a contract listed for trading on 

a registered entity, i.e. where both the foreign board of trade’s and the registered entity’s

contract settle to the price of the same third party-constructed index.

-----------------------

E–5
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EXHIBIT E: TERMS AND CONDITIONS OF CONTRACTS TO BE MADE AVAILABLE IN THE US

E–6:

Demonstrate that the contracts are not readily susceptible to manipulation. In addition, 

for each contract to be listed, describe each investigation, action, proceeding or case 

involving manipulation and involving such contract in the three years preceding the 

application date, whether initiated by the foreign board of trade, a regulatory or selfregulatory authority or agency or other government or prosecutorial agency. For each 

such action, proceeding or case, describe the alleged manipulative activity and the 

current status or resolution thereof.

-----------------------

Demonstrate that the contracts are not readily susceptible to manipulation.

Euronext uses a risk-based approach to mitigate risks to contract and market integrity. This 

approach promotes high standards of integrity and fair dealing.

The identification of significant risks is based on an assessment of the impact and probability of 

crystallisation of risks. The main categories of risk for the markets are broadly:

 Contract-specific 

 Market-wide, or

 Clearing.

The contract-specific risks are addressed principally through application of the following 

measures which aim to minimise inherent risks and to manage residual risk elements:

 Contract design, as described in this Exhibit E–6

 Incentive scheme scrutiny, as also described in this Exhibit E–6, and

 Front-line operations and real-time surveillance, as described in Exhibit G–2.

The Euronext product range is diverse, encompassing futures and option contracts based on a 

variety of instruments.

E–6
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[Redacted Confidential Text]

All contracts executed on the trading system are subject to the same front-line operations and 

real-time surveillance, while the post-trade monitoring process is designed to identify 

potentially abusive behaviours as described by ESMA.

Contract Design

In line with the Tokyo Communiqué which the CFTC was instrumental in establishing, the 

contract design of Euronext’s derivatives products reflects the international consensus on the 

elements to be considered in order to reduce the possibility that a commodity contract may be 

susceptible to manipulation or disorderly conditions.

The approval process at Euronext for each contract includes a Regulatory Review to determine, 

and formally document, whether a new or amended contract satisfies, inter alia, the 

requirements.

Amendments to Contract Specifications are made in the interests of maintaining a fair and 

orderly market. Criteria applicable to changes would normally include ensuring that:

 the interests of those already holding long or short positions in the contract are 

protected, and 

 the changes enhance the Contracts for risk management purposes.

Incentive scheme scrutiny

The amount and level of benefits to be made available under a proposed incentive scheme are 

reviewed to ensure that they are appropriate.

Consideration is given to whether the scheme:

 could have the effect of incentivising market participants to make false prices and 

thereby undermine the efficacy of the price formation process, and/or

 is susceptible to other forms of abuse such as encouraging persons to enter into 

transactions for other than proper trading purposes.

In addition, for each contract to be listed, describe each investigation, action, proceeding or 

case involving manipulation and involving such contract in the three years preceding the 

application date, whether initiated by the foreign board of trade, a regulatory or selfregulatory authority or agency or other government or prosecutorial agency. For each such 

action, proceeding or case, describe the alleged manipulative activity and the current 

status or resolution thereof.
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[Redacted Confidential Text]

-----------------------
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EXHIBIT F—THE REGULATORY REGIME GOVERNING THE FOREIGN BOARD OF TRADE IN 

ITS HOME COUNTRY OR COUNTRIES

F (1):

A description of the regulatory regime/authority’s structure, resources, staff, and scope 

of authority; the regulatory regime/authority’s authorizing statutes, including the source 

of its authority to supervise the foreign board of trade; the rules and policy statements 

issued by the regulator with respect to the authorization and continuing oversight of 

markets, electronic trading systems, and clearing organizations; and the financial 

protections afforded customer funds.

(2) A description of and, where applicable, copies of the laws, rules, regulations and 

policies applicable to:

(i) The authorization, licensure or registration of the foreign board of trade.

(ii) The regulatory regime/authority’s program for the ongoing supervision and 

oversight of the foreign board of trade and the enforcement of its trading rules.

(iii) The financial resource requirements applicable to the authorization, licensure or 

registration of the foreign board of trade and the continued operations thereof.

(iv) The extent to which the IOSCO Principles are used or applied by the regulatory 

regime/authority in its supervision and oversight of the foreign board of trade or are 

incorporated into its rules and regulations and the extent to which the regulatory 

regime/ authority reviews the applicable trading systems for compliance therewith.

(v) The extent to which the regulatory regime/authority reviews and/or approves the 

trading rules of the foreign board of trade prior to their implementation.

(vi) The extent to which the regulatory regime/authority reviews and/or approves 

futures, option or swap contracts prior to their being listed for trading.

(vii) The regulatory regime/authority’s approach to the detection and deterrence of 

abusive trading practices, market manipulation, and other unfair trading practices or 

disruptions of the market.

(3) A description of the laws, rules, regulations and policies that govern the authorization 

and ongoing supervision and oversight of market intermediaries who may deal with 

members and other participants located in the United States participants, including:

(i) Recordkeeping requirements.

(ii) The protection of customer funds.

(iii) Procedures for dealing with the failure of a market intermediary in order to 

minimize damage and loss to investors and to contain systemic risk.

(4) A description of the regulatory regime/authority’s inspection, investigation and 

surveillance powers; and the program pursuant to which the regulatory 

regime/authority uses those powers to inspect, investigate, and enforce rules applicable 

to the foreign board of trade.

F
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(5) For both the foreign board of trade and the clearing organization (unless addressed 

in Supplement S–1), a report confirming that the foreign board of trade and clearing 

organization are in regulatory good standing, which report should be prepared 

subsequent to consulting with the regulatory regime/authority governing the activities 

of the foreign board of trade and anyassociated clearing organization. The report should 

include:

(i) Confirmation of regulatory status (including proper authorization, licensure and 

registration) of the foreign board of trade and clearing organization.

(ii) Any recent oversight reports generated by the regulatory regime/authority that are, 

in the judgment of the regulatory regime/authority, relevant to the foreign board of 

trade’s status as a registered foreign board of trade.

(iii) Disclosure of any significant regulatory concerns, inquiries or investigations by the 

regulatory regime/authority, including any concerns, inquiries or investigations with 

regard to the foreign board of trade’s arrangements to monitor trading by members or 

other participants located in the United States or the adequacy of the risk management 

controls of the trading or of the clearing system.

(iv) A description of any investigations (formal or informal) or disciplinary actions 

initiated by the regulatory regime/authority or any other self-regulatory, regulatory or

governmental entity against the foreign board of trade, the clearing organization or any 

of their respective senior officers during the past year.

(6) For both the foreign board of trade and the clearing organization (unless addressed 

in Supplement S–1), a confirmation that the regulatory regime/ authority governing the 

activities of the foreign board of trade and the clearing organization agree to cooperate 

with a Commission staff visit subsequent to submission of the application on an ‘‘as

needed basis,’’ the objectives of which will be to, among other things, familiarize 

Commission staff with supervisory staff of the regulatory regime/authority; discuss the 

laws, rules and regulations that formed the basis of the application and any changes 

thereto; discuss the cooperation and coordination between the authorities, including, 

without limitation, information sharing arrangements; and discuss issues of concern as 

they may develop from time to time (for example, linked contracts or unusual trading 

that may be of concern to Commission surveillance staff).

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F (1):

A description of the regulatory regime/authority’s structure, resources, staff, and scope of 

authority; the regulatory regime/authority’s authorizing statutes, including the source of 

its authority to supervise the foreign board of trade; the rules and policy statements issued 

by the regulator with respect to the authorization and continuing oversight of markets, 

electronic trading systems, and clearing organizations; and the financial protections 

afforded customer funds.

Description of the regulatory regime/authority’s structure, resources, staff, and scope of 

authority; the regulatory regime/authority’s authorizing statutes, including the source of 

its authority to supervise the foreign board of trade; the rules and policy statements issued 

by the regulator with respect to the authorization and continuing oversight of markets, 

electronic trading systems, and clearing organizations

The Netherlands Authority for the Financial Markets (AFM) is the primary authority responsible 

for the supervision of securities markets in the Netherlands, with the participation of the Dutch 

Central Bank (De Nederlandsche Bank, DNB) in prudential supervision. In addition to its 

responsibility supervision of conduct of business –stemming from the Dutch Act on Financial 

Supervision (AFS)– the AFM has specific responsibilities stemming from other laws: (i) 

Supervision of statutory auditors (Audit Firm Supervision Act); (ii) Supervision over financial 

reporting by issuers (Act on Supervision of Financial Reporting); and (iii) consumer protection 

in relation to exempted issuers that engage in “abusive” offerings (Consumer Protection 

Enforcement Act). 

The AFM has roughly 600 employees. 

The AFS is clear in relation to the core mandates of the AFM. Pursuant to Section 1:25, 

supervision of conduct of business shall focus on orderly and transparent financial market 

processes, integrity in relations between market parties and due care in the provision of 

services to clients. These respective mandates are well understood not only by the financial 

supervisors, but also appear to be by market participants.

Section 1:25 AFS

1. Conduct of business supervision shall focus on orderly and transparent financial market 

processes, integrity in relations between market parties and due care in the provision of 

services to clients. 

2. Under this Act, the Authority for the Financial Markets shall be required to exercise the 

supervision of conduct of the financial markets and to decide on the admission of financial 

enterprises to those markets.

Pursuant to Sections 5:32 of the AFS operators of a Regulated Market (RM) are required to 

adopt effective rules and procedures in order to identify violations of the rules and procedures, 

as well as trading conditions disrupting the orderly operation of the market or actions 

indicative of market abuse. Serious violations are to be reported to the AFM. They are also 

obliged to supply the applicable information to the AFM, the Public Prosecution Office or 
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investigating officers competent under the Economic Offenses Act, and to fully cooperate with 

the AFM, the Public Prosecution Office or these investigating officers in their investigation or 

prosecution of actions indicative of market abuse that have occurred in or via its systems. 

Section 5:30 AFS 

A market operator shall ensure that the regulated market: 

a. has rules and procedures for identifying and controlling potential negative consequences for 

the operation or proper functioning of the regulated market or for its participants of conflicts 

between the interests of the regulated market, the owners or the market operator; 

b. is adequately equipped to control the risks to which it is exposed, in any case by having rules 

and regulations for identifying all significant risks to the operation and for taking effective 

measures to limit those risks; 

c. has rules and procedures for a healthy management of the technical operation of the system 

and effective precautionary measures to eliminate risks relating to system breakdowns; 

d. has transparent, non-discretionary rules and procedures that guarantee fair and orderly 

trading, as well as objective criteria for the efficient execution of orders; 

e. has effective rules and procedures for settling transactions carried out through its system 

efficiently and in time.

Memorandum of Understanding

Regarding the co-ordinated regulation and supervision of the Euronext Group the AFM has 

signed a Memorandum of Understanding (MoU) with the AMF (France), the FSMA (Belgium), 

the CMVM (Portugal) and the FSA (United Kingdom). This MoU aims to ensure a common 

approach in areas of common interest and a coherent supervision/oversight framework.

A college of supervision has also been established on the oversight of LCH SA between the 

relevant authorities.

financial protections afforded customer funds

Euronext is obliged to have excess capital available to run their markets for 12 months to 

ensure an orderly wind-down of their activities in case such a wind-down occurs.

Customer funds are protected via the Dutch Giro Act which ensures customer fund protection at 

CSD and Intermediary level. The AFM supervises both the CSD and Intermediaries.

Further protection is offered by central clearing of traded products.

Section 5:30 AFS 

A market operator shall ensure that the regulated market: 

f. has sufficient financial resources to promote the orderly operation of the market, in view of 

the nature and size of the transactions carried out on the market and the scope and level of the 

risks to which it is exposed.
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F (2):

A description of and, where applicable, copies of the laws, rules, regulations and policies 

applicable to:

(i) The authorization, licensure or registration of the foreign board of trade.

Pursuant to AFS Section 5:26 the Dutch Minister of Finance has the power to grant a license to 

operate a RM. It is prohibited to operate a RM without a license unless an exemption has been 

granted. Pursuant to Sections 5:27, 5:29, 5:30, and 5:32 of the AFS, a license shall be granted 

provided that the operator of the RM demonstrates that the market operator has its registered 

office in the Netherlands and that it complies with requirements related to: 

 the expertise and properness of the persons who determine and co-determine the dayto-day policy of the operator;

 sufficient financial resources to promote the orderly operation of the market, in view of 

the nature and size of the transactions carried out on the market and the scope and level 

of the risks to which it is exposed. In principle this requirement involves having enough 

funds and working capital for six months;

 rules and procedures for identifying and controlling potential conflicts between the 

interests of the regulated market, the owners or the market;

 the rules on the admission of financial instruments to trading on the regulated market;

 transparency and non discriminatory rules, based on objective criteria, with regard to 

access to trading or membership in the regulated market;

 transparent, non-discretionary rules and procedures that guarantee fair and orderly 

trading, as well as objective criteria for the efficient execution of orders;

 rules and regulations for identifying all significant risks to the operation and for taking 

effective measures to limit those risks;

 rules and procedures for a proper management of the technical operation of the system 

and effective precautionary measures to eliminate risks relating to system breakdowns;

 effective rules and procedures for settling transactions carried out through its system 

efficiently and in time; and

 effective rules and procedures in order to regularly check ongoing compliance by the 

members of or participants in the regulated market.

Pursuant to the AFS the AFM must provide the Minister of Finance with a recommendation as to 

whether the applicant meets the criteria laid down in the AFS. The license may be subject to 

conditions and limitations (AFS Section 1:102). 

In practice this means that the AFM will assess the applicant against the requirements stated 

above. To this end the AFM developed a “Handbook for Regulated Markets”, which further 

details the criteria for the recognition of Regulated Markets in the Netherlands as well as for the 

ongoing evaluation of their performance. The handbook is not publicly available but is given to 

potential licensees.
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(ii) The regulatory regime/authority’s program for the ongoing supervision and oversight 

of the foreign board of trade and the enforcement of its trading rules.

Overall the extent of supervision of the AFM over RMs and MTFs would largely depend on the 

scale of operations, the type of securities and the type of participants involved. For example a 

MTF for equity derivatives that allows retail participation would be subject to closer scrutiny 

than a RM in energy derivatives whose members are all sophisticated professional parties. As 

of today, a significant amount of supervisory resources in this area are dedicated to Euronext 

given the scale of operations and the type of securities involved. 

[Redacted Confidential Text]

Many of the issues that can arise in connection with the oversight of Euronext Amsterdam are 

common to all the supervisors where Euronext operates markets. Thus, for the most part, 

these issues are discussed within the framework of cooperation developed by the five 

signatories to the MoU. However, when necessary the AFM does conduct independent analysis 

and review when an issue is unique to the Amsterdam market; for example, the establishment 

of a facility to trade exchange traded funds (ETFs) for the Amsterdam market.

(iii) The financial resource requirements applicable to the authorization, licensure or 

registration of the foreign board of trade and the continued operations thereof.

Euronext is obliged to have excess capital available to run their markets for 12 months to 

ensure an orderly wind-down of their activities.

(iv) The extent to which the IOSCO Principles are used or applied by the regulatory 

regime/authority in its supervision and oversight of the foreign board of trade or are 

incorporated into its rules and regulations and the extent to which the regulatory 

regime/authority reviews the applicable trading systems for compliance therewith.

As the primary supervisor of the securities market the Authority of Financial Markets (AFM) has 

developed a robust supervisory framework, which exhibits high levels of implementation of the 

International Organisation of Securities Commissions (IOSCO) Principles. Its supervision of 

markets follows a risk-based approach, and thus a significant amount of the AFM’s resources 

are currently dedicated to the supervision of Euronext Amsterdam, as well as to Euronext NV, 

the latter along with the supervisors from the four remaining countries where Euronext holds 

licenses. Supervisory programs are implemented under a clear enforcement strategy. The AFM’s 

main goal is to influence behavior and it uses the different tools at its disposal (including fines 

when necessary) to achieve such result. 
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(v) The extent to which the regulatory regime/authority reviews and/or approves the 

trading rules of the foreign board of trade prior to their implementation.

The rules for access to the RM are reviewed by the AFM and the Ministry of Finance at the 

moment of granting a license. In addition, the operator of a licensed RM must submit any 

potential change in its rules or in the compliance procedures in respect to such rules to the AFM. 

The AFM has to formally approve new rules or amended rules (section 4 of the Decree on 

Regulated Markets as regards RM). 

In addition changes to the persons that determine the day to day policy of the RM must be 

submitted to the AFM for approval. The AFM will approve a change in persons unless the change 

could be a threat to the healthy and prudent management or operation of the RM.

The acquisition of a qualifying holding (more than 10% of share capital) or exercise of control 

related to a qualifying holding in a market operator requires a declaration of no objection from 

the Dutch Minister of Finance (Section 5:32(d)).

Consequences for Violations

In case the AFM is not satisfied that Euronext is adequately operating its market according to 

the rules and regulation, the AFM can issue an instruction. The AFM can, in extremis, advise the 

Minister of Finance to withdraw the license. Other sanctions include the power to issue an order 

for incremental penalty payments and the issuance of a reprimand. The same type of sanctions 

is available for an MTF except that in this case the withdrawal of license corresponds to the 

AFM.

(vi) The extent to which the regulatory regime/authority reviews and/or approves futures, 

option or swap contracts prior to their being listed for trading.

The AFM does not review or approve futures, option or swap contracts prior to admission to 

trading on Euronext as the AFM considers this to be a commercial matter. However, in case the 

listing of a financial instrument requires a modification of the Euronext Rule Book, Trading 

Manual or Trading Procedures, approval by the AFM is required.

The AFM does monitor performance of contracts and will take action if it considers to have 

adverse effects on market participants or unfair elements.

In practice, markets are welcomed and do share information about new contracts to be 

admitted proactively.

Also, pursuant to rule 5103/1 of Euronext harmonized Rule Book applying to derivatives 

contracts, “Prior to designating a Derivative as an Admitted Financial Instrument, the Relevant 

Euronext Market Undertaking shall determine that the design of such Derivative shall allow for its 
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orderly pricing and the existence of effective settlement conditions and comply with the provisions 

of Article 5 of Commission Delegated Regulation (EU) 2017/568 of 24 May 2016”.

In accordance with the provisions of Article 51 of MIFID2, Euronext is responsible for verifying 

that the terms of the contract establishing the financial instruments are clear and unambiguous, 

and enable a correlation between the price of the financial instrument and the price or other 

value measure of the underlying.

Rule 5103/3 also states that “Such Contract Specifications may be amended from time to time and 

such amendments will be published in a Notice. The Relevant Euronext Market Undertaking will 

not perform amendments to Contract Specifications in respect of open positions except in 

exceptional circumstances and/or in the interests of maintaining a fair and orderly market.”

(vii) The regulatory regime/authority’s approach to the detection and deterrence of 

abusive trading practices, market manipulation, and other unfair trading practices or 

disruptions of the market.

The Market Abuse Regulation (EU) nr. 596/2014 (the “MAR”) and related Commission 

Implementing Regulations and Delegated Regulations, provide for specific rules that intend to 

prevent market abuse, such as the prohibitions on insider trading, divulging inside information 

and tipping, and market manipulation (the “EU Market Abuse Rules”). Euronext is subject to the 

EU Market Abuse Rules and non-compliance with these rules may lead to criminal fines, 

administrative fines, imprisonment or other sanctions.

Additionally, persons professionally arranging transactions in financial instruments have an 

obligation to notify the AFM of suspicious transactions.

The definition of market manipulation addresses four categories of misconducts: (i) behaviour 

which gives, or is likely to give, false or misleading signals as to the supply of, demand for, or 

price of, a financial instrument; or secures, or is likely to secure, the price of one or several 

financial instruments at an abnormal or artificial level; (ii) use of misleading or deceptive 

tactics; (iii) bring the price to an artificial level by means of transactions or orders; and (iv) 

transmitting false or misleading information regarding a financial instrument. The AFM has 

provided further guidance concerning market manipulation and the types of transactions or 

orders which the AFM might interpret as violations of the relevant provisions. The types of 

misconduct can be committed in the context of financial products, including commodity 

derivatives.

Systems and Arrangements for the Continuous Monitoring of Trading 

[Redacted Confidential Text]

Cross-Border

[Redacted Confidential Text]
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F (3):

A description of the laws, rules, regulations and policies that govern the authorization and 

ongoing supervision and oversight of market intermediaries who may deal with members 

and other participants located in the United States participants, including:

(i) Recordkeeping requirements.

An investment firm that has executed transactions in financial instruments admitted to trading 

on a regulated market shall disclose the details of these transactions to the Authority for the 

Financial Markets as soon as possible and by the end of the following working day at the latest. 

As from January 2018, when MiFIR became effective, operators of trading venues are required 

to keep at the disposal of the competent authority, for at least five years, the relevant data 

relating to all orders in financial instruments which are advertised through their systems 

(MiFIR art. 25 sub 2).

In addition, the Dutch Civil Code (DCC) requires any party who conducts a business to keep 

accounts, and accompanying books and any other information concerning the profession for a 

period of seven years (Book 2, Title 9).

(ii) The protection of customer funds.

Euronext is obliged to have excess capital available to run their markets for 12 months to 

ensure an orderly wind-down of their activities in case such a wind-down occurs.

Customer funds are protected via the Dutch Giro Act which ensures customer fund protection 

at CSD and Intermediary level. The AFM supervises both the CSD and Intermediaries.

Further protection is offered by central clearing of traded products.

(iii) Procedures for dealing with the failure of a market intermediary in order to minimize 

damage and loss to investors and to contain systemic risk.

AFM has the possibility to request the market operator to suspend trading capabilities of 

intermediaries that can have an adverse effect on safety of markets. 

AFM can also appoint a silent curator to reorganise the intermediary in such a way that it 

complies with regulatory standards.

Protection against failure of an intermediary is also offered through CCP clearing and 

segregation of funds via the Dutch Giro Act.
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In addition, protection against failure of a market intermediary is offered through LCH SA 

clearing, a French company.

As a French clearing organization, LCH SA is a credit institution which is registered in France 

and subject pursuant to EMIR6 to supervision by a college of various European authorities, 

coordinating their efforts under the leadership of the ACPR and the AMF and the oversight of 

the Banque de France (BdF) (all together the National Competent Authorities or NCAs). 

LCH SA has established a set of risk management mechanisms that is applied to all the activity of 

its Clearing Members. In particular it serves to address large exposure risks, starting with 

membership criteria for Clearing Members, which include capital requirements.

Risk exposures are monitored and covered through different margins. They are also daily 

marked to market. Clearing Members are required to pay initial margin (to cover default in 

normal conditions – market risks to become) as well as variation margin (to cover past market 

risks), which are calculated and called several times during the day; this includes end of day and 

intra-day margins. LCH SA can impose additional margins, on an individual basis. LCH SA also 

has a general right to require that positions be reduced (LCH SA’s Clearing Rule Book article 

4.1.0.7). It can also revoke trading privileges or require additional capital from a Clearing 

Member. LCH SA also has default funds which are sized via extreme and plausible stress testing 

scenarios and is daily monitored against the exposure of the two largest member groups. The 

default fund is sufficient to at least cover the risk run in case of the two largest members' 

group’s default. Contributions for the default fund are called monthly.

Default procedures are in place. If a Clearing Member defaults, all its collateral, margins and/or 

payments to the default fund belong to LCH SA. The CCP will use first the margins and the 

contributions of the defaulting Clearing Member and if they are not sufficient, then LCH SA will 

use its own resources and then the contributions of other Clearing Members. LCH SA can 

exercise these rights without having to wait for bankruptcy proceedings or seek member preapproval.

Article L. 440-9 of the COMOFI states that in case of insolvency of the Clearing Member, the CCP 

may transfer the position of the non defaulting clients and their guarantees deposited to cover 

their positions to another Clearing Member. The rules of the CCP specify the procedure of 

transfer of the position and of the collateral of the non-defaulting clients (LCH SA’s Clearing Rule 

Book article 4.5.2.5 and subsequent). The LCH SA’s Instruction IV.5-2 provides the details of the 

liquidation and transfer procedures in case of an event of default of a Clearing Member.

The college of authorities supervising LCH SA has developed a framework for crisis 

management which includes periodic simulations.

F (4):

A description of the regulatory regime/authority’s inspection, investigation and 

surveillance powers; and the program pursuant to which the regulatory regime/authority 

 

6

Regulation No 648/2012 of the European Parliament and Council of 4 July 2012 on OTC derivatives, central 

counterparties and trade repositories (EMIR - European Market Infrastructures Regulation)
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uses those powers to inspect, investigate, and enforce rules applicable to the foreign board 

of trade.

Powers Over Regulated Entities

AFS Section 1:74 deals with supervisory and investigative powers. The section states that the 

supervisors can request information from any person for the purposes of the supervision of 

compliance with the AFS or the rules. It also explicitly states that for such purpose Sections 5:13 

to 5:20 of the General Administrative Law Act (GALA) apply. According to GALA a public entity 

can:

 Request information from any person;

 Inspect business information and documents, and make copies of them; and if not 

possible take the documents with them for a short period for their inspection; and

 Enter into business premises without consent, even request the assistance of the police.

Given that such powers can even be enforced on any person, there is no question of the AFM’s

authority to apply them over regulated entities–which in the case of the AFM includes banks 

authorized to carry out investment services. As a result the AFM can conduct on-site inspections 

on them, both as a result of a particular inquiry or on a routine basis, and without giving prior 

notice, as well as request information and documents from them. 

GALA does not explicitly refer to the authority to take testimony but it has been interpreted that 

the term “information” encompasses testimony, not only by the AFM but also by other public 

agencies to which such provisions also apply–for example, the Competition Authority. GALA 

does not authorize to take testimony under oath; but it explicitly states that failure to cooperate 

with a public authority constitutes a criminal offense (GALA Section 5:20 in connection with 

Section 184 of the Criminal Act). It has been interpreted not only by the AFM, but also by other 

public entities to which these provisions apply, that cooperation includes both attending a 

request, as well as doing it truthfully. 

Identity of Clients

Pursuant to AFS Section 1:74 in connection with the provisions of GALA, the AFM has the 

authority to request from regulated entities information that would allow them to identify 

customers.

Obligations in Regard to Anti-Money Laundering (AML)

Regulated entities (banks, investment firms, and fund managers) are required to have in place 

mechanisms to minimize the potential for AML. Such obligations are incorporated in the AntiMoney Laundering and Anti-Terrorist Financing Act (Wwft). In particular regulated entities are 

required to conduct customer due diligence, which should enable the institution to: (i) identify 

the customer and verify the customer's identity; (ii) where applicable, identify the beneficial 

owner and take risk-based and adequate measures to verify the beneficial owner's identity, and, 
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where a legal person, a foundation or a trust is concerned, to take risk-based and adequate 

measures to gain insight into the customer's ownership and control structure; (iii) determine 

the objective and nature of the business relationship; and (iv) where possible, carry out 

constant monitoring of the business relationship and the transactions conducted during the 

existence of this relationship, in order to ensure that these tally with the knowledge which the 

institution has of the customer and the customer's risk profile, and to check the source of the 

assets where appropriate. The Wwft Act reflects a risk-based approach. This means that 

institutions must perform their own appraisal of the risks posed by individual clients or 

product, so that they may adapt their compliance efforts to those risks. 

Pursuant to the Wwft Act regulated entities are required to notify any unusual transactions to 

the FIU. Unusual transactions may be identified using the so-called list of indicators.

Investigative powers over third parties

Based on AFS Section 1:72 in connection with GALA, the AFM has the power to request 

information; examine business and documents, and enter into business premises of any person, 

thus including non-regulated entities. Failure to cooperate constitutes a criminal offense.

AFS Section 1:72 in connection with GALA provides the AFM with the authority to request 

banking records. The AFM does not have authority to request telephone records nor records 

from internet service providers, given that they are subject to special laws. Such information 

can be requested pursuant to a criminal investigation.

Enforcement Authority

The AFS provides the AFM with the authority to impose a wide range of enforcement measures 

in relation to the violation of its provisions. 

Regulated entities

Instruct regulated entities to adhere to a particular conduct, if they failed to comply with the 

AFS (Section 1:75). DNB can also issue an instruction if it detects signs of developments that can 

jeopardize the equity capital, solvency or liquidity of a regulated entity.

Issue a public warning if a regulated entity fails to comply with an instruction (Section 1:94).

Appoint a “conservator”, if the regulated entity has failed to comply with an instruction; the 

violation seriously jeopardize the adequate operation of the entity, the interest of consumers or 

clients; or jeopardizes the equity capital, solvency or liquidity of a regulated entity (Section 

1:76). When a conservator is appointed all decisions of the entity have to be approved by 

him/her.

Prevent a financial enterprise from conducting its business at a branch office, or the 

performance of services, or providing financial services in another Member State (Section 1:77).

Modify, withdraw or limit the license (Section 1:104).
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Give the holder of a regulated market an instruction to suspend, interrupt or cancel trading in 

certain financial instruments where an issuer does not comply with the provisions under 

Section 5:59, which includes the obligation of publication of inside information.

Issue generic conveyance of standards which are intended to communicate the standard to a 

regulated entity. 

Both regulated and third parties

Impose orders for incremental penalty payments in relation to violations of regulations arisen 

from the sections listed in an Annex to the AFS, and the Prospectus Regulation, or failure to 

cooperate with the financial supervisors (Section 1:79). The list of provisions whose breach can 

be sanctioned with an order for incremental penalty is broad and include breaches by regulated 

entities as we’ll as by third parties.

Impose administrative fines in relation to violations of regulations arising from the same 

provisions mentioned above, to be accrued in favor of the Regulator. Such fines can be applied 

on legal persons but also personally on the Directors of the legal entities. The framework for the 

application of fines is imbedded in the Penalty Act. It provides for a system of fixed and variable 

administrative fines, consisting of three categories of violations: minor, medium, and serious. All 

violations are specified and categorized. Minor violations are governed by a system of fixed 

amounts, with a fine of €10,000. Fines for medium violations such as infringements of 

regulations governing consumer protection or non-compliance with integrity rules start at 

€500,000 with a maximum of €1 million. Serious violations, such as insider trading and market 

manipulation, start at €2 million up to €4 million. The AFM and DNB can reduce or increase the 

fixed amounts for medium and serious violations by 50 percent, depending on the gravity 

and/or duration of the violation and/or the degree of culpability of the offender. Although 

accumulation is possible, the overall maximum fine is, in principle, limited to €4 million. In 

cases of recidivism, the fine can be doubled. 

All decisions to impose fines must be made public by the AFM or DNB (Section 1:97). Such duty 

is irrespective of whether an appeal has been instituted against such decision before the 

administrative courts. However, publication may be suspended if a preliminary court injunction 

against publication is obtained (Section 1:97, subsection 3 and 1:98) or in case publication is or 

might be considered contrary to the objectives of the AFS. While parties have used such rights, 

the AFM stated that the courts have set the bar high and have only granted such stay in a low 

percentage of cases (roughly 20 percent).

The AFM does not have to disclose pending investigations, except in exceptional cases (for 

example when there are rumors in the markets).

Other Enforcement Powers and Measures

The AFM cannot directly impose emergency relief (such as freeze of assets or closing of a 

business that is conducting activities outside of the perimeter of regulation), but such type of 

measures can be sought within a criminal investigation. It does not have either quasiprosecutorial powers, but it can refer matters to the Public Prosecution Office (PPO). 
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The AFM does not have disgorgement nor restitution authority, and it cannot enter into 

settlements. The authorities do not consider that the lack of these powers have affected their 

enforcement activities.

Information Sharing with the PPO

AFS Section 1:92 authorizes the AFM to supply confidential data or information obtained in the 

performance of the duties assigned to it pursuant to this Act to a body entrusted with exercising 

powers to prosecute or to an expert issued with an instruction by such a body, insofar as the 

demanded data or information is necessary for the performance of that instruction. 

The AFM has MoUs with the PPOs to coordinate enforcement actions.

Private Right of Action

Enforcement actions by the financial supervisors or the PPO do not compromise in any way 

private parties’ right of action.

F (5):

For both the foreign board of trade and the clearing organization (unless addressed in 

Supplement S–1), a report confirming that the foreign board of trade and clearing 

organization are in regulatory good standing, which report should be prepared subsequent 

to consulting with the regulatory regime/authority governing the activities of the foreign 

board of trade and anyassociated clearing organization. The report should include:

(i) Confirmation of regulatory status (including proper authorization, licensure and 

registration) of the foreign board of trade and clearing organization.

Euronext Amsterdam is duly authorised and supervised as a market operator by the AFM.

LCH SA is duly authorised and supervised by the ACPR.

(ii) Any recent oversight reports generated by the regulatory regime/authority that are, in 

the judgment of the regulatory regime/authority, relevant to the foreign board of trade’s 

status as a registered foreign board of trade.

There are no concerns regarding the regulatory status of Euronext Amsterdam and there are no 

reports to mention in this respect.
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(iii) Disclosure of any significant regulatory concerns, inquiries or investigations by the 

regulatory regime/authority, including any concerns, inquiries or investigations with 

regard to the foreign board of trade’s arrangements to monitor trading by members or 

other participants located in the United States or the adequacy of the risk management 

controls of the trading or of the clearing system.

There are no particular concerns in this respect.

(iv) A description of any investigations (formal or informal) or disciplinary actions 

initiated by the regulatory regime/authority or any other self-regulatory, regulatory or 

governmental entity against the foreign board of trade, the clearing organization or any of 

their respective senior officers during the past year.

There are currently no pending investigations or disciplinary actions.

F (6):

For both the foreign board of trade and the clearing organization (unless addressed in 

Supplement S–1), a confirmation that the regulatory regime/ authority governing the 

activities of the foreign board of trade and the clearing organization agree to cooperate 

with a Commission staff visit subsequent to submission of the application on an ‘‘as needed 

basis,’’ the objectives of which will be to, among other things, familiarize Commission staff 

with supervisory staff of the regulatory regime/authority; discuss the laws, rules and 

regulations that formed the basis of the application and any changes thereto; discuss the 

cooperation and coordination between the authorities, including, without limitation, 

information sharing arrangements; and discuss issues of concern as they may develop from 

time to time (for example, linked contracts or unusual trading that may be of concern to 

Commission surveillance staff).

The Government of the United States of America and the government of the Kingdom of the 

Netherlands have signed an agreement (1993) on mutual administrative assistance in the 

exchange of information in futures matters. Article 2 of this agreement states that 1) each 

Competent Authority –which is defined for the Government of the United States of America as 

the United States Commodity Futures Trading Comission or the Comission’s designee and other 

authorities designated by the United States Government, and for the Government of the 

Kingdom of the Netherlands, the Minister of Finance or the Minister’s designee– undertakes, in 

accordance with the provisions the particular agreement, to provide the Competent Authority of 

the other Contracting Party with the greatest possible measure of mutual administrative 

assistance in obtaining and exchanging information relating to the administration and 

enforcement of the other’s futures and options laws and regulations. 2) The assistance available 

under the particular Agreement includes but is not limited to: a. obtaining and providing 

information and documents by the Competent Authority of the Requested State; b. taking 

statements of persons by the Competent Authority of the Requested State; and c. conducting 

compliance inspections or examinations of futures businesses by the Competent Authority of 
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the Requested State. 3) In particular, each Competent Authority shall give assistance to the 

other Competent Authority in obtaining and exchanging information that is relevant to the laws 

and regulations of the Requesting competent Authority concerning: a. the granting of licenses, 

waivers or exemptions for the conduct of futures business; b. the observance of the laws and 

regulations applicable to futures business; c. the observance of the laws and regulations 

applicable to futures exchanges; d. the observance of the regulations of futures exchanges by 

their members; and e. the prevention and detection of futures and option fraud and other 

irregularities in connection with the offer, purchase or sale of any futures or option contract.

Like the CFTC, the AFM is a signatory of the IOSCO Memorandum of Understanding. Following 

section 6(a) of the IOSCO Multilateral Memorandum of Understanding, this MoU sets forth the 

Authorities’ intent with regard to mutual assistance and the exchange of information for the 

purpose of enforcing and securing compliance with the respective Laws and Regulations of the 

jurisdictions of the Authorities. The provisions of this Memorandum of Understanding are not 

intended to create legally binding obligations or supersede domestic laws.

The AFM views the IOSCO MoU as primary basis for exchange of information with other 

regulators.

-----------------------
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EXHIBIT G: THE RULES OF THE FBOT AND ENFORCEMENT THEREOF 

G–1:

A description of the foreign board of trade's regulatory or compliance department, 

including its size, experience level, competencies, duties and responsibilities.

Euronext’s legal and compliance functions have been increasingly organised as group functions, 

distinct from the business units. [Redacted Confidential Text]

Each Exchange has legal and regulation departments which are responsible for all local matters, 

including the relationship with the local regulator. The departments also contribute to group 

initiatives, whether at a European level (e.g. in relation to harmonised trading arrangements) or 

more generally. In London and Paris the legal and regulation teams are separate from one 

another and in the other centres they are integrated.

For local matters, the head of the relevant legal department has a dotted reporting line to the 

head of the market undertaking, but the substantive reporting lines are to the Executive Legal 

Director and General Counsel in Europe.

Group initiatives and related matters and the relationship with the College of Regulators are the 

responsibility of the European Head of Regulation, who works with the local teams to identify 

resources to deal with the regulatory aspects of such initiatives, making use of the specialist 

knowledge within the team where appropriate. The regulation team works with the business 

and the Euronext College of Regulators.

[Redacted Confidential Text]

Compliance is a group function with dedicated staff in the Paris and Amsterdam Euronext 

market undertakings responsible for local matters as well as cross-border concerns involving

monitoring and supervision of Members and/or issuers, as relevant. [Redacted Confidential 

Text]

The compliance function reports into the Group’s Head of Risk and Compliance.

-----------------------

G–1
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EXHIBIT G: THE RULES OF THE FBOT AND ENFORCEMENT THEREOF 

G–2:

A description of the foreign board of trade's trade practice rules, including but not 

limited to rules that address the following –

(1) Capacity of the foreign board of trade to detect, investigate, and sanction persons who 

violate foreign board of trade rules.

Real-time monitoring of trading is conducted at the business unit level and is the responsibility 

of the operational staff. Referrals are made by those staff to the Member Compliance 

department, a group level function. In addition Member Compliance monitors trading on all 

Euronext markets on a 'post trade' basis. 

An alleged violation of the Rules by a Member of Euronext Paris is dealt with in accordance with 

Chapter 9 (Measures in case of Violation of the Rules) of Book I (Harmonised Rules) of the 

Euronext Rule Book. Please see Exhibit G–2 (3) for further details.

Each Market Services centre conducts the following functions within the framework of a 

common set of Operational Procedures:

 opening and closing the market: ensuring that the market is opened and closed in an 

orderly manner

 managing dynamic price limits: widening or removing dynamic price limits if and when 

appropriate within the policy promulgated in the Euronext Trading Procedures and

Operational Procedures

 trade invalidation: notifying the market when particular trade(s) are under 

investigation, determining whether to invalidate the trade(s) and notifying 

counterparties and the market as a whole when a trade is invalidated. The criteria for 

trade invalidation are set out in the Euronext Trading Procedures

authorising Wholesale Trades (e.g. Large-in-scale Trades and Basis Trades): after checking the 

validity of Wholesale Trades and ensuring that Large-in-scale Trades meet the relevant 

minimum volume requirement and also that a trade represents a fair value for a trade of its size 

and type)

 establishing Daily Settlement Prices: calculating Daily Settlement Prices using the within 

the framework set out in the Euronext Trading Procedures and relevant supplementary 

guidance

 terminating, and restarting, a trading session: undertaking action jointly with the other 

Market Services centre pursuant to the common Serious Incident Management 

G–2
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Procedures (Annexe C.3 refers) and involving the Executive Director, Market Services or 

his alternate

 suspending a contract/contract month: suspending a contract/contract month where 

appropriate

 suspending market access in relation to a Member/Individual Trading Mnemonic (ITM):

locking out a Member or ITM as a result of a technical problem or misuse of the 

connection or because of a Rules violation or Member default

 referring suspected violations of the Rules and Trading Procedures: making referrals on 

identifying a potential breach of the Rules and Trading Procedures.

Ensuring that applicants for membership meet the specified criteria is an important part of 

ensuring that Members have sufficient systems, controls and competence to execute business on 

the market. The admission of Members for all Euronext markets is carried out by the

Membership Department with support from Member Compliance. .

G–2 (2):

Prohibition of fraud and abuse, as well as abusive trading practices including, but not 

limited to, wash sales and trading ahead, and other market abuses.

The EU Market Abuse Regulation (MAR7) is intended to guarantee the integrity of European 

financial markets and increase investor confidence. 

In accordance with Article 54 of MiFID2, Member States must require that Regulated Markets 

establish and maintain effective arrangements and procedures for the regular monitoring of the 

compliance by their members or participants with their rules. Regulated markets must monitor 

the transactions undertaken by their members or participants under their systems in order to 

identify breaches of those rules, disorderly trading conditions or conduct that may involve 

market abuse.

Rule 8104 in Euronext’s Book I prohibits Abusive or misleading conduct:

“8104/1 In conducting business for itself or on behalf of its Clients, a Member must not 

engage in or attempt to engage in Insider Dealing or Market Manipulation and, in 

particular, must not engage in, knowingly facilitate or fail to take reasonable steps to 

prevent:

 

7 Regulation 596/2014/EU
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(i) any action or any course of conduct that has the effect, or may be 

expected to have the effect, of artificially and/or abnormally moving the 

price or value of any Admitted Financial Instrument or any instrument 

underlying an Admitted Financial Instrument or the level of any index of 

which an Admitted Financial Instrument is a component;

(ii) entering artificial orders or otherwise entering into or causing any 

artificial Transaction;

(iii) reporting a fictitious Transaction or any other false data to Euronext or

causing such data to be input into any Euronext system;

(iv) any action or any course of conduct that creates or may reasonably be

expected to create any false or misleading impression as to the market 

in, or price or value of, any Admitted Financial Instrument;

(v) any other action or any other course of conduct that may damage the 

integrity and the transparency of any of the Euronext Markets; or

(vi) agreeing or acting in concert with, or providing any assistance to, any 

Person (whether or not a member) with a view to or in connection with 

any action or course of conduct referred to in paragraphs (i) to (v) 

inclusive of this Rule 8104 or otherwise causing or contributing to a 

breach of any applicable Rule by such other Person.)”

Rule 8104 concerns abusive or misleading conduct and therefore covers wash trades. Front 

running is an offence governed by MiFID and also can be considered as insider dealing. A

suspicion of front running would be referred by the exchange to the regulator.

G–2 (3):

A trade surveillance system appropriate to the foreign board of trade and capable of 

detecting and investigating potential trade practice violations.

Euronext uses the same tools for real-time monitoring of each of its derivatives markets. The 

main tools are the Monitoring and Control (M&C) System and the Dynamic Price Limits, as 

outlined below.

[Redacted Confidential Text]

Dynamic Price Limits are important tools for monitoring the markets and guarding against

manifest errors on order entry. They protect members and each market as a whole from keying 

errors that inevitably occur from time to time in an automated market.

The price limits operate in real-time and any orders submitted outside the limits are 

automatically rejected.
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Futures:

For futures, the price limits in the most active contract month (‘blue month’) are based on a

number of ticks either side of the last traded price (or subsequent offers below/bids above that 

price).

For all other contract months, the price limits operate on the basis of a number of ticks either 

side of the fair value for that month, with the fair value level being calculated by the system in 

real-time from outright and implied spread prices available in the market. Adjusted in line with 

the price limits for the blue month, the price limits in the other months remain up to date and do 

not interrupt normal trading.

The number of ticks, or ‘price limit spread’, is configurable by contract month and is adjusted as 

appropriate to reflect market conditions. For example, the price limit spread may be widened 

ahead of a major economic announcement. 

Options:

For options, the theoretical fair value price for each series is used to generate a spread, the 

range of which is determined from the applicable option delta value. The spread range is the 

price limit for the option series concerned.

G–2 (4):

An audit trail that captures and retains sufficient order and trade-related data to allow the 

compliance staff to detect trading and market abuses and to reconstruct all transactions 

within a reasonable period of time.

Euronext maintains an audit trail for at least five years of all messages to and from the trading 

system and all trading data.

Compliance staff, within the member compliance department are able to analyse this trading 

data using inhouse bespoke surveillance reports to detect behaviours which are suspicious and 

which may be abusive. The reports look for activity such as layering, spoofing, wash sales, 

market dominance and money passing.

[Redacted Confidential Text]

G–2 (5):

Appropriate resources to conduct real-time supervision of trading.

Please see G–2 (6) below.
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G–2 (6):

Sufficient compliance staff and resources, including those outsourced or delegated to third 

parties, to fulfill regulatory responsibilities.

The structure for monitoring and supervision of Euronext’s continental derivatives markets 

consists of:

 Market Operations: The staff in this function focus on initiating preventive and 

immediate corrective actions when the functioning of the orderly market is threatened 

and market rules are breached. Again, potential infringements of the Euronext rules are 

reported to Compliance for further investigation and, if required, enforcement action or 

referral to the competent regulator

 member compliance department. This department is responsible for:

o monitoring the trading on all Euronext markets on a 'post trade ' basis. The 

objective of this post-trade monitoring is detection of possible cases of market 

abuse (insider trading and market manipulation) and of possible infringements 

of the Euronext rules. , and

o conducting inspections of members, initiated either as part of a regular audit 

programme or by referrals from Market Operations, claims and complaints, or as 

a result of other referrals.

staffing

[Redacted Confidential Text]

G–2(7):

Rules that authorize compliance staff to obtain, from market participants, information and 

cooperation necessary to conduct effective rule enforcement and investigations.

Chapter 8 of Book I contains the rules of conduct which Members must observe in respect of the 

Euronext markets.

Rule 8103 concerns co-operation with Euronext and requires that:

“8103/1 In dealing with Euronext, its directors, officers, employees, agents and

representatives, Members shall act in an open and cooperative manner, be 

honest and truthful and not mislead or conceal any material matter.

8103/2 In particular, without limiting the generality of Rule 8103/1, a Member shall:

(i) provide full and prompt responses to all requests for information by 

Euronext in respect of business conducted on Euronext Markets or 
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business related thereto and provide access to all relevant books, 

records, audio logs and other forms of documentation, and

(ii) notify the Relevant Euronext Market Undertaking promptly of any 

matter which may reasonably be expected to be a matter of concern to 

the Euronext Market Undertaking in the context of its relationship with 

such Member, including (without limitation) any corporate action or 

other event that may cause such Member to cease to be in compliance 

with the Rules. This duty of disclosure shall arise as soon as the Member 

becomes aware, or has reasonable grounds for believing, that such a 

matter has arisen or will arise.”

Rule 2401 sets out Members’ continuing obligations, which include requiring Members to 

authorise Euronext or its duly appointed agents to carry out on-site investigations during 

normal business hours in any place of business of the Member or its Affiliate. A Member is 

required to submit as soon as possible any information or document which Euronext or such 

agents consider appropriate for the purposes of an investigation.

Chapter 9 of Book I concerns measures in case of violations of the Rules. As part of these, 

Euronext may require a Member to provide any information, copies of records and documents 

that may be relevant for the examination of an alleged violation. In addition, Euronext may 

require a Member to procure the attendance of any of its directors, employees, agents and 

representatives at a meeting to answer questions or provide explanations that may be relevant 

for the examination of an alleged violation.

G–2 (8):

Staff investigations and investigation reports demonstrating that the compliance staff 

investigates suspected rule violations and prepares reports of their finding and 

recommendations.

Intra-day, or ‘real-time', monitoring of the markets is aimed at:

 initiating preventive and immediate corrective actions when the functioning of the 

orderly market is threatened and market rules are breached

 monitoring compliance with rules relating to trading activity, including the provisions of 

Chapter 8 (Abusive and Misleading Conduct) of Book I on a real-time basis.

Alleged infringements of the Euronext rules are formally investigated by Member Compliance 

pursuant to Chapter 9 of the Euronext Rules. In every such case a report is prepared. Where the 

conclusion of the investigation is that a Rule or Procedure has been violated, then the applicable 

sanction is dictated by Market Notice N9-01.
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Cases of potential market abuse are reported by Member Compliance to the competent 

regulator.

G–2 (9):

Rules determining access requirements with respect to the persons that may trade on the 

foreign board of trade, and the means by which they connect to it.

The criteria for eligibility for membership are set out in Rule 2201.

An applicant must be:

 an Investment Firm or a Credit Institution that is:

o authorised in its home Member State to conduct business on the market, and

o where relevant, has notified any relevant competent authority that it wishes to 

exercise its EEA Right in that authority’s jurisdiction

 or, in the case of a Non-MIFID Firm:

o authorised or otherwise permitted by the relevant regulatory authority to conduct 

business on the market, or

o (in the absence of a requirement for authorisation or other permission), fit and 

proper with a business standing suitable for admission to membership.

Any applicant must:

 have suitably qualified and experienced staff

 demonstrate that its relevant personnel are fluent in English or the language of the relevant 

market

 have adequate internal procedures and controls in relation to its intended business on the 

market

 have sufficient resources for its intended business on the market

 enter into any necessary Agreement as contemplated under the Rules

 satisfy the relevant technical requirements, and

 satisfy any other criteria published by Notice.
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Only applications from jurisdictions with satisfactory regulatory arrangements will be 

considered; such regulatory arrangements must encompass supervision of investment activity 

and information-sharing and supervisory co-operation.

Technical access to Euronext is via a network infrastructure managed by an Application Service 

Provider (ASP) or an Extranet Service Provider (ESP). While ESPs only provide connectivity 

from a SFTI® Point of Presence (PoP) to a customer’s premises, ASPs usually provide additional 

services (e.g. market data, order submission, order routing). Euronext has a wide range of 

Application Service Providers.

[Redacted Confidential Text]

G–2 (10):

The requirement that market participants submit to the foreign board of trade's

jurisdiction as a condition of access to the market.

Access to the markets is through the contractual relationship established through membership.

Rule 2101/2 of Book I states that “The trading privileges and obligations of a Member shall be 

set forth in this Rule Book, the Admission Agreement and in other specific agreements 

contemplated by this Rule Book.”

Members' continuing obligations are stipulated in Rule 2401, as follows:

“A Member shall on a continuing basis:

(i) abide by the Rules, as from time to time in force, and take all appropriate 

actions prescribed by the Rules;

(ii) fulfil his obligations under the Admission Agreement and, where relevant, any 

other agreement(s) to which the Relevant Euronext Market Undertaking and 

the Member are party; 

(iii) pay the fees and charges prescribed by Euronext according to the conditions 

established by Euronext and communicated to Members;

(iv) authorise Euronext or its duly appointed agents to carry out on-site 

investigations, during normal business hours, in any place of business of the 

Member or its Affiliate, and submit as soon as possible any information or 

document which Euronext or such agents consider appropriate for purposes of 

such investigations;

(v) comply with the technical requirements of the relevant Euronext Trading 

Platform(s) and of any other information technology system or network 

operated by Euronext, as set out in the relevant agreement(s); 
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(vi) notify the Relevant Euronext Market Undertaking as soon as possible and in 

writing of any material changes to the information submitted during the course 

of the Membership application, including in particular (without limitation) 

those in respect of the Member's authorisation, license or permission to 

conduct Investment Services; 

(vii) give prior written notice to the Relevant Euronext Market Undertaking of any 

facts or circumstances which may affect the legal form or organisation of the 

Member or its trading activities on the Euronext Markets, including (without 

limitation) any consolidation, reorganisation, merger, change of name, change 

of control or similar event to which the Member is or will become a party and 

provide such additional information as the Relevant Euronext Market 

Undertaking may reasonably require; 

(viii) notify immediately the Relevant Euronext Market Undertaking of the 

commencement or anticipation of any bankruptcy, insolvency, winding up, 

administration or equivalent event (including amicable settlement) in any 

relevant jurisdiction the Member is subject to or to which the Member is a 

party; 

(ix) provide the Relevant Euronext Market Undertaking with such contact details of 

representatives of the Member as may be determined by the Relevant Euronext 

Market Undertaking and notify the Relevant Euronext Market Undertaking of 

any changes to such details (including changes to the address of the Member) 

in a timely manner;

(x) ensure that any description of his Membership or the services that he is able to 

provide, in the form and context in which it appears or is used, does not 

misrepresent the scope of the capacity which he enjoys under the Rules in 

relation to the Relevant Euronext Market Undertaking; 

(xi) notify immediately the Relevant Euronext Market Undertaking of the 

suspension or termination of a Clearing Agreement to which it is a party; 

(xii) notify immediately the Relevant Euronext Market Undertaking of its failure to 

comply with Rule 2501/2; and

(xiii) implement and maintain adequate internal procedures and controls in relation 

to its business on the market.”

(xiv) provide Euronext with all data required pursuant to Union Law including, 

without limitation, requirements imposed by:

 delegated regulation (EU) 2017/580;

 delegated regulation (EU) 2017/590;

 National Regulations implementing Article 57 of MIFID II,
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and comply with all associated technical requirements, such data and technical 

requirements being specified by Notice; and

(xv) certify that the algorithms they deploy and use as algorithmic trading on 

Euronext Trading Platforms have been tested to avoid contributing to or 

creating disorderly market conditions.”

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EXHIBIT G: THE RULES OF THE FBOT AND ENFORCEMENT THEREOF

G–3:

A description of the foreign board of trade's disciplinary rules, including but not limited 

to rules that address the following –

(1) Disciplinary authority and procedures that empower staff to recommend and 

prosecute disciplinary actions for suspected rule violations and that provide the 

authority to fine, suspend, or expel any market participant pursuant to fair and clear 

standards.

-----------------------

G–3(1):

Disciplinary authority and procedures that empower staff to recommend and prosecute 

disciplinary actions for suspected rule violations and that provide the authority to fine, 

suspend, or expel any market participant pursuant to fair and clear standards.

In respect of the Euronext markets in Amsterdam or Paris, an alleged violation of the Rules by a 

Member is dealt with in accordance with Chapter 9 (Measures in case of Violation of the Rules) 

of Book I (Harmonised Rules) of the Euronext Rule Book.

It should be noted that action pursuant to Chapter 9 is without prejudice to:

 any action and/or measures that may be taken by Euronext based on any procedure laid 

down in another part of the Rules

 Euronext’s right to carry out on-site inspections, during normal business hours, in respect 

of a member’s activities on the Euronext Markets, or

 Any provision of National Regulation concerning enforcement by Competent Authorities.

Rule 9103 of Book I empowers Euronext, if a violation of the Rules by a member constitutes a 

threat to the integrity or the safety of the markets, or on instruction of the Competent Authority, 

to take immediate measures to protect the market, including suspension of all or some of a 

member’s trading rights.

Rule 9203 of Book I (Harmonised Rules) states that when there is an alleged violation of one or 

more Rules, Euronext shall make a written Report of its findings, with specific reference to the 

Rule(s) allegedly breached by the relevant member.
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The relevant member is sent a copy of the Report and, under Rule 9203/4, should present its 

response in writing within two weeks, unless otherwise specified, after receiving the report.

Any comments made by the member are then attached to the Report.

At either party’s request, Euronext will then organise a meeting to give both parties the 

opportunity to ask further questions and to respond to the alleged violation. Both parties may 

procure the attendance of any representative, expert or other person at the meeting. However, a 

party may deny the attendance of the other party’s experts or other persons if they are able to 

prove that the persons are affected by conflicts of interest. No more than eight people shall 

attend a meeting for either party, unless agreed otherwise between Euronext and the member.

Rule 9.2 contains the procedure for examination of an alleged violation. Euronext may:

 require a member to provide any information, copies of records and documents that 

may be relevant for the examination of an alleged violation

 send a representative to a member’s offices during normal business hours. The 

representative may require immediate access to information, records and documents

relevant to examination of the alleged violation, and/or

 require a representative of any member to attend a meeting to answer questions or

provide explanations that may be relevant to examination of the alleged violation.

G–3(2):

The issuance of warning letters and/or summary fines for specified rule violations.

Further to the investigation of a potential breach of the Rules, Euronext may issue a Warning 

Letter which informs the Member that a further offence may lead to disciplinary action being 

taken. A fine may be imposed as described in Exhibit G–3(6) below.

G–3(3):

The review of investigation reports by a disciplinary panel or other authority for issuance 

of charges or instructions to investigate further, or findings that an insufficient basis exists 

to issue charges.

Rule 9203 of Book I (Harmonised Rules) states that when there is an alleged violation of one or 

more Rules, Euronext shall make a written Report of its findings, with specific reference to the 

Rule(s) allegedly breached by the relevant member.
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The relevant member is sent a copy of the Report and, under Rule 9203/4, should present its 

response in writing within two weeks, unless otherwise specified, after receiving the report.

Any comments made by the member are then attached to the Report.

At either party’s request, Euronext will then organise a meeting to give both parties the 

opportunity to ask further questions and to respond to the alleged violation. Both parties may 

procure the attendance of any representative, expert or other person at the meeting. However, a 

party may deny the attendance of the other party’s experts or other persons if they are able to 

prove that the persons are affected by conflicts of interest. No more than eight people shall 

attend a meeting for either party, unless agreed otherwise between Euronext and the member.

G–3(4):

Disciplinary committees of the foreign board of trade that take disciplinary action via 

formal disciplinary processes.

If an offence is perceived to be market abuse, the case is referred to the Competent Authority for 

action.

For other cases, disciplinary action is taken by Euronext itself, in accordance with the procedure 

specified in detail in the Rules.

G–3(5):

Whether and how the foreign board of trade articulates its rationale for disciplinary 

decisions.

Disciplinary decisions are reported to the relevant regulator in accordance with Rule 9401 of 

Book I which states that:

“Euronext shall:

(i) report on the monitoring of Rule Book compliance and violations of the Rules

to the Competent Authority on the basis of arrangements between Euronext

and the Competent Authority;

(ii) immediately notify the Competent Authority of a decision to suspend or to

terminate a member’s trading or membership rights under Chapter 9;

(iii) prepare and publish a general report on the application of Chapter 9 from time

to time but at least once a year. If necessary to protect the integrity or the

safety of the markets such report may disclose the identities of the members

involved.”
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G–3(6):

The sanctions for particular violations and a discussion of the adequacy of sanctions with 

respect to the violations committed and their effectiveness as a deterrent to future 

violations.

Further to the investigation of a potential breach of the Rules, Euronext may issue a Warning 

Letter (as above) or may apply one of the sanctions set out in Rule 9301/1, which are to:

 require a member to fulfill its obligations under the Rules or require rectification 

towards Euronext of the violation

 either:

(a) require from the member liquidated damages of between EUR 500 and EUR 

250,000 according to a scale published in a Notice (the Penalty Notice), or

(b) claim compensation for actual damage caused to Euronext’s interest as a 

commercial operation and as a Regulated Market or to the integrity or safety of 

its markets, if the damage is higher than the fixed amount under (a) above

 suspend some of the member’s trading or membership rights for not more than six 

months, and/or

 suspend the member’s Euronext membership for not more than six months

 terminate the member’s Euronext membership.

The sanctions which can be imposed are an effective deterrent for Members.

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EXHIBIT G: THE RULES OF THE FBOT AND ENFORCEMENT THEREOF 

G–4:

A description of the market surveillance program (and any related rules), addressing

the followingThe dedicated market surveillance department or the delegation or outsourcing of that

function, including a general description of the staff; the data collected on traders'

market activity; data collected to determine whether prices are responding to supply and 

demand; data on the size and ownership of deliverable supplies; a description of the 

manner in which the foreign board of trade detects and deters market manipulation; for 

cash-settled contracts, methods of monitoring the settlement price or value; and any 

foreign board of trade position limit, position management, large trader or other position 

reporting system.

--------------------------------

The dedicated market surveillance department or the delegation or outsourcing of that

function, including a general description of the staff

Front-line operations and real-time surveillance tools as well as post trade surveillance tools

are described in Exhibit G–2, which also provides a description of the staff/departments 

involved. 

The data collected on traders' market activity; data collected to determine whether prices 

are responding to supply and demand

[Redacted Confidential Text]

Data on the size and ownership of deliverable supplies

Commodities contracts listed by Euronext Amsterdam have not given rise to physical deliveries 

so far.

A description of the manner in which the foreign board of trade detects and deters market 

manipulation

G–4
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Please see Exhibits E–6 and G–2.

For cash-settled contracts, methods of monitoring the settlement price or value 

This is achieved through a combination of the following:

 data from the as described in Exhibit D–1, which receives underlying price feeds and 

uses a theoretical options pricing model to generate indicative prices for all Euronext

options and futures contracts

 establishment of the Exchange Delivery Settlement Price (‘EDSP’)

 real-time market monitoring, as described in Exhibit G–2.

Any foreign board of trade position limit, position management, large trader or other

position reporting system.

Since MIFID2 entry into force, there are two types of limits superposed.

1/ The CCP own delivery limits

LCH SA sets position limits for commodity contracts. These limits are set pursuant to Article 

4.1.0.5 of LCH SA’s Clearing Rule Book (which is included at Appendix 8).

In accordance with LCH SA’s Instruction IV.1-1 “Positions limits applicable on commodities 

futures”:

 the Open Position limit is the maximum number of buying or selling contracts that a 

Clearing Member is authorised to keep for delivery after the expiry, per contract and per 

expiry;

 the Open Position limit is determined by LCH SA for each expiry;

 the Open Position limit is published in a Notice;

 no later than the 12th business day before the D day of expiry (i.e. D-12), Clearing 

Members are authorised to maintain an Open Position representing maximum 200% of 

the Open Position limit. This authorisation is reduced by 10% each business day until D2 when the set Open Position limit effectively applies;

 LCH SA can trigger measures to have those limits complied with. This can lead, after 

formal notice, to the automatic liquidation of surplus Open Positions;
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 on request, LCH SA can grant a derogation from the provisions of the Instruction. Any 

such derogation is published without revealing the identity of the requesting Member;

and

 to assess the Open Positions of one or several Clearing Members or a request for 

derogation, LCH SA may consider the aggregate of Transactions from the same financial 

group or persons acting in concert.

Positions limits are also applicable on financial derivatives in accordance with LCH SA’s 

Instruction IV.1-2 “Positions limits applicable on MONEP ”.

The following link exhibits is a summary of the applicable CCP open position limits on the 

Amsterdam commodities futures contracts with effect from 21 September 2017:

(https://www.lch.com/media/1357)

2/ MIFID2 regulatory position limits 

Under MIFID2 regime, the national supervisor, namely the AFM for Euronext Amsterdam, has set out 

in consultation with ESMA a range of position limits applicable respectively to the spot month and to 

the (all) other months of commodity contracts, to be respected by any market participant. For each 

of these two maturity ranges, position limits apply intra-day and are computed by integrating the 

futures equivalent (delta) of options on futures. Exemptions for hedge are possible for non-financial 

entities.

To ensure enforcement of such limits, Euronext members have to provide Euronext Amsterdam with 

a daily report of all their positions going down to the ultimate order giver and this consolidated 

report is in turn transmitted by Euronext Amsterdam to the AFM. In parallel, each week Euronext 

Amsterdam may determine to produce a compiled report aggregating open positions per type of 

market participant, akin to the Commitments of Traders report produced by US commodity 

exchanges (this remains optional for the time being as Euronext Amsterdam commodity contracts 

are under the open interest thresholds for mandatory publication defined by ESMA).

As a matter of fact, as all Euronext Amsterdam commodity contracts are illiquid according to MIFID2 

standards, the spot month and the other months’ limits are set by default to 2,500 contracts 

pursuant to EU delegated regulation 2017/591.

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EXHIBIT H: INFORMATION SHARING AGREEMENTS AMONG THE COMMISSION, THE 

FOREIGN BOARD OF TRADE, THE CLEARING ORGANIZATION, AND RELEVANT 

REGULATORY AUTHORITIES

H:

(1) A description of the arrangements among the Commission, the foreign board of trade, 

the clearing organization, and the relevant foreign regulatory authorities that govern the 

sharing of information regarding the transactions that will be executed pursuant to the 

foreign board of trade’s registration with the Commission and the clearing and 

settlement of those transactions. This description should address or identify whether 

and how the foreign board of trade, clearing organization, and the regulatory authorities 

governing the activities of the foreign board of trade and clearing organization agree to 

provide directly to the Commission information and documentation requested by 

Commission staff that Commission staff determines is needed:

(i) To evaluate the continued eligibility of the foreign board of trade for registration. 

(ii) To enforce compliance with the specified conditions of the registration.

(iii) To enable the CFTC to carry out its duties under the Act and Commission regulations 

and to provide adequate protection to the public or registered entities.

(iv) To respond to potential market abuse associated with trading by direct access on the 

registered foreign board of trade.

(v) To enable Commission staff to effectively accomplish its surveillance responsibilities 

with respect to a registered entity where Commission staff, in its discretion, determines 

that a contract traded on a registered foreign board of trade may affect such ability.

(2) A statement as to whether and how the foreign board of trade has executed the 

International Information Sharing Memorandum of Understanding and Agreement.

(3) A statement as to whether the regulatory authorities governing the activities of the 

foreign board of trade and clearing organization are signatories to the International 

Organization of Securities Commissions Multilateral Memorandum of Understanding. If 

not, describe any substitute information sharing arrangements that are in place.

(4) A statement as to whether the regulatory authorities governing the activities of the 

foreign board of trade and clearing organization are signatories to the Declaration on 

Cooperation and Supervision of International Futures Exchanges and Clearing 

Organizations. If not, a statement as to whether and how they have committed to share 

the types of information contemplated by the International Information Sharing 

Memorandum of Understanding and Agreement with the Commission, whether pursuant 

to an existing memorandum of understanding or some other arrangement.

---------------------------

H
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H(1):

A description of the arrangements among the Commission, the foreign board of trade, the 

clearing organization, and the relevant foreign regulatory authorities that govern the 

sharing of information regarding the transactions that will be executed pursuant to the 

foreign board of trade’s registration with the Commission and the clearing and settlement 

of those transactions. This description should address or identify whether and how the 

foreign board of trade, clearing organization, and the regulatory authorities governing the 

activities of the foreign board of trade and clearing organization agree to provide directly 

to the Commission information and documentation requested by Commission staff that 

Commission staff determines is needed:

(i) To evaluate the continued eligibility of the foreign board of trade for registration. 

(ii) To enforce compliance with the specified conditions of the registration.

(iii) To enable the CFTC to carry out its duties under the Act and Commission regulations 

and to provide adequate protection to the public or registered entities.

(iv) To respond to potential market abuse associated with trading by direct access on the 

registered foreign board of trade.

(v) To enable Commission staff to effectively accomplish its surveillance responsibilities 

with respect to a registered entity where Commission staff, in its discretion, determines 

that a contract traded on a registered foreign board of trade may affect such ability.

Subject to national laws and regulations, Euronext Amsterdam confirms agreement to provide 

directly to the Commission information and documentation requested by Commission staff that 

Commission staff determines is needed to:

 evaluate the continued eligibility of the foreign board of trade for registration

 enforce compliance with the specified conditions of the registration

 enable the CFTC to carry out its duties under the Act and Commission regulations and to 

provide adequate protection to the public or registered entities

 respond to potential market abuse associated with trading by direct access on the 

registered foreign board of trade, and

 enable Commission staff to effectively accomplish its surveillance responsibilities with 

respect to a registered entity where Commission staff, in its discretion, determines that 

a contract traded on a registered foreign board of trade may affect such ability.

The Government of the United States of America and the government of the Kingdom of the 

Netherlands have signed an agreement (1993) on mutual administrative assistance in the 

exchange of information in futures matters. Article 2 of this agreement states that 1) each 

Competent Authority –which is defined for the Government of the United States of America as 

the United States Commodity Futures Trading Comission or the Comission’s designee and other 
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authorities designated by the United States Government, and for the Government of the 

Kingdom of the Netherlands, the Minister of Finance or the Minister’s designee– undertakes, in 

accordance with the provisions the particular agreement, to provide the Competent Authority of 

the other Contracting Party with the greatest possible measure of mutual administrative 

assistance in obtaining and exchanging information relating to the administration and 

enforcement of the other’s futures and options laws and regulations. 2) The assistance available 

under the particular Agreement includes but is not limited to: a. obtaining and providing 

information and documents by the Competent Authority of the Requested State; b. taking 

statements of persons by the Competent Authority of the Requested State; and c. conducting 

compliance inspections or examinations of futures businesses by the Competent Authority of 

the Requested State. 3) In particular, each Competent Authority shall give assistance to the 

other Competent Authority in obtaining and exchanging information that is relevant to the laws 

and regulations of the Requesting competent Authority concerning: a. the granting of licenses, 

waivers or exemptions for the conduct of futures business; b. the observance of the laws and 

regulations applicable to futures business; c. the observance of the laws and regulations 

applicable to futures exchanges; d. the observance of the regulations of futures exchanges by 

their members; and e. the prevention and detection of futures and option fraud and other 

irregularities in connection with the offer, purchase or sale of any futures or option contract. 

Like the CFTC, the AFM is a signatory of the IOSCO Memorandum of Understanding. Following 

section 6(a) of the IOSCO Multilateral Memorandum of Understanding, this MoU sets forth the 

Authorities’ intent with regard to mutual assistance and the exchange of information for the 

purpose of enforcing and securing compliance with the respective Laws and Regulations of the 

jurisdictions of the Authorities. The provisions of this Memorandum of Understanding are not 

intended to create legally binding obligations or supersede

domestic laws.

H(2):

A statement as to whether and how the foreign board of trade has executed the 

International Information Sharing Memorandum of Understanding and Agreement.

Euronext Amsterdam is a signatory to the International Information Sharing Memorandum of 

Understanding and Agreement signed on 15 March 1996 at Boca Raton.

H(3):

A statement as to whether the regulatory authorities governing the activities of the foreign 

board of trade and clearing organization are signatories to the International Organization 

of Securities Commissions Multilateral Memorandum of Understanding. If not, describe any 

substitute information sharing arrangements that are in place.
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Like the CFTC, the AFM is a signatory of the IOSCO Memorandum of Understanding. The AFM 

views the IOSCO MoU as primary basis for exchange of information with other regulators.

H(4):

A statement as to whether the regulatory authorities governing the activities of the foreign 

board of trade and clearing organization are signatories to the Declaration on Cooperation 

and Supervision of International Futures Exchanges and Clearing Organizations. If not, a 

statement as to whether and how they have committed to share the types of information 

contemplated by the International Information Sharing Memorandum of Understanding 

and Agreement with the Commission, whether pursuant to an existing memorandum of 

understanding or some other arrangement.

The AFM, under its previous name of STE (abbreviation for Stichting Toezicht Effectenverkeer), 

signed the Declaration on Cooperation and Supervision of International Futures Exchanges and 

Clearing Organizations in March 1996 and the European Options Exchange (subsequently subsumed 

into what is now Euronext Amsterdam) signed the corresponding International Information Sharing 

Memorandum of Understanding and Agreement.

As an IOSCO member in good standing, the AFM is a signatory to the International Organization of 

Securities Commissions Multilateral Memorandum of Understanding and confirms that they can 

share the type of information contemplated by the agreement with the CFTC. 

A statement from the AFM confirming this is included in Appendix 9.

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EXHIBIT I: ADDITIONAL INFORMATION AND DOCUMENTATION

I:

Any additional information or documentation necessary to demonstrate that the 

requirements for registration applicable to the foreign board of trade set forth in 

Commission regulation 48.7 are satisfied.

A copy of the annual report of Euronext for 2017 and the semi annual report of Euronext for 

2017 can be found at https://www.euronext.com/en/investors/regulated-information/annualfinancial-reports. 

---------------------------

I
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SECTION 4: FORM FBOT
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COMMODITY FUTURES TRADING COMMISSION

FORM FBOT

FOREIGN BOARD OF TRADE APPLICATION FOR REGISTRATION (IN

ORDER TO PERMIT DIRECT ACCESS TO MEMBERS AND OTHER

PARTICPANTS)

Euronext Amsterdam N.V.

Name of applicant as specified in organizational documents

Beursplein 5, 1012JW, Amsterdam, The Netherlands

Address of principal executive office

 If this Form FBOT is a new application for registration, complete in full and check

 here.

 If this Form FBOT is an amendment to a pending application or to a final application

that resulted in the issuance of an Order of Registration, list and/or describe all items

that are amended or otherwise updated and check here.

When appropriate, please attach additional pagers) containing a list and explanatory

statement of amendment(s) or update(s).

GENERAL INFORMATION

1. Name under which the business of the foreign board of trade will be conducted, if

different than name specified above: N/A

X
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2. List of principal office(s) where foreign board of trade activities are/will be conducted:

Office (name and/or location): Euronext Amsterdam N.V.

Address: Beursplein 5, P.O. Box 19163, 1000GD Amsterdam, The 

Netherlands

Phone Number: +31207211000

Fax Number: -

Website Address: www.euronext.com

3. Contact Information.

3a. Primary Contact for Form FBOT (i.e., the person authorized to receive Commission

correspondence in connection with this Form FBOT and to whom questions regarding the

submission should be directed):

Name: Nick Weinreb

Title: Group Head of Regulation

Email Address: nweinreb@euronext.com

Mailing Address: 10th floor

110 Cannon StreetLondon EC4N 6EU

Phone Number: +44 20 7076 0929

Fax Number: -
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3b. If different than above, primary contact at the foreign board of trade that is

authorized to receive all forms of Commission correspondence:

Name:

Title:

Email Address:

Mailing Address:

Phone Number:

Fax Number:

BUSINESS ORGANIZATION

Describe organizational history, including date and, if applicable, location of filing of original 

organizational documentation, and describe all substantial amendments or changes thereto. 

Euronext Amsterdam N.V. is a public limited liability company, incorporated on 4 August 2000 

and has its statutory seat in Amsterdam. The articles of association have most recently been 

amended on 16 December 2015.
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SIGNATURES

By signing and submitting this Form FBOT, the applicant agrees to and consents that the

notice of any proceeding before the Commission in connection with the foreign board of

trade's application for registration or registration with the Commission may be given by

sending such notice by certified mail or similar secured correspondence to the persons

specified in sections 3a and 3b above.

Euronext Amsterdam has duly caused this Form FBOT to be signed on its behalf by the 

undersigned, hereunto duly authorized, this 13th day of July, 2018.

Euronext Amsterdam and the undersigned represent that all information and representations 

contained herein are true, current, and complete. It is understood that all information, 

documentation, and exhibits are considered integral parts of this Form FBOT. The submission of 

any amendment to Form FBOT represents that all items and exhibits not so amended remain 

true, current, and complete as previously filed.

Signatures of Chief Executive Officer (Maurice van Tilburg) and 

Managing board member (René van Vlerken), 

on behalf of the Foreign Board of Trade

Euronext Amsterdam N.V. 

Name of Foreign Board of Trade
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SECTION 5: APPENDICES 

Appendix Content

1 Hierarchy Structure Chart for the Group

2 Articles of association of Euronext Amsterdam 

3 3.1

3.2

Euronext Membership Application Form

Membership Information Form

4 Contract Specifications, prospectuses or Technical Specifications (as the case may 

be) for the contracts specified in Exhibit E–1

5 5.1

5.2

5.3

Dutch Act on Financial Supervision Act (AFS)

MiFID2

MIFIR

6 6.1

6.2

6.3

Book I (Harmonised Rules)

Book II (Specific rules applicable to the Amsterdam regulated markets)

Euronext Trading Procedures

7 Guidance on documented procedures

8 LCH SA’s Clearing Rule Book

9 Statement from the AFM regarding information sharing agreements

_________________________________