CME Group and Google Cloud announced a 10-year strategic partnership last week, along with a $1 billion investment in CME Group by Google. Under the new agreement, CME Group is set to migrate its technology infrastructure to Google Cloud beginning next year.
The migration will begin with CME Group’s data and clearing services, before eventually moving all of the exchange operator’s markets to the cloud. According to CME Group, the newly formed partnership is focused on delivering benefits like expanded access to company-wide infrastructure, aimed at increasing efficiencies by moving to the cloud and streamlining operations, optimizing IT infrastructure and automating non-trading operations.
“Through this long-term partnership with Google Cloud, CME Group will transform derivatives markets through technology, expanding access and creating efficiencies for all market participants,” said CME Group CEO, Terry Duffy. “To ensure a smooth transition, we will work closely with clients to implement a phased approach. This partnership will enable CME Group to bring new products and services to market faster — all in a flexible and scalable environment that will create a wide range of opportunities for the marketplace.”
The deal will also serve as an opportunity for Google to prove its place in the global derivatives market, as it looks to argue its case for the importance of cloud adaptation in such markets.
As the tech giant now partners with CME Group to begin the process of migrating its data to the cloud, Duffy has since appointed a new Chief Transformation Officer for the company. Newly appointed CTO Ken Vroman is now tasked with overseeing the entire migration process, marking his latest task since joining the company in 2001.
CME Group’s interest in such an endeavor came as no surprise to Google Cloud CEO Thomas Kurian, who sees a long record of success in the company’s past.
“CME Group has a century-long track record of helping investors access new markets and is known for innovation in financial markets,” said Kurian. “Bringing together CME Group’s best-in-class financial talent with Google Cloud’s deep engineering expertise will help accelerate technological innovation in capital markets infrastructure.
Today, CME Group offers futures, options, cash and OTC market trading options for its clients. Cloud migration has proven successful in various industries in recent years, and CME Group is continuing to prepare for such a future.