Google Cloud has today announced a 10-year strategic partnership with financial derivatives exchange company CME Group.
The collaboration will aim to accelerate CME Group's cloud migration, and in the process, change the way that the global derivatives market uses technology. Starting next year, the company will move its technology infrastructure to Google Cloud, with the end goal of migrating the entirety of its markets to the cloud.
In addition to the collaboration between the two companies, Google has also announced it has also made a $1 billion equity investment in a new series of non-voting convertible preferred stock of CME Group.
CME Group chairman and CEO Terry Duffy says the collaboration will change how the company interacts with technology going forward.
“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,” says 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 two companies aim to deliver benefits to all market participants by:
Expanding access
Using Google Cloud's global network, CME Group will be able to scale its infrastructure while increasing access for more market participants, optimising costs, and helping onboard new users more easily and quickly.
Creating real-time data and analytics capabilities
Google Cloud's data analytics and machine learning solutions will help CME Group provide clients with on-demand information and toolkits for developing models, algorithms, and real-time risk management.
Introducing new products and services
CME Group will co-innovate new products with Google Cloud's technology, such as risk mitigation tools, analytics services, and user-centric platforms. The two companies will also continue to explore ways to work together on go-to-market initiatives that deliver new innovations for CME Group's customers.
Increasing efficiencies
By moving to the cloud, CME Group will be able to streamline operations, optimise its IT infrastructure, and automate non-trading operations.
Driving resiliency in the financial markets ecosystem
As CME Group's trusted cloud provider, Google Cloud will deliver open source technology standards and enhanced cybersecurity protection, underpinned by a global network.
“CME Group has a century-long track record of helping investors access new markets and is known for innovation in financial markets,” says Google Cloud CEO Thomas 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.
To help facilitate the cloud migration for CME Group, Duffy has appointed Ken Vroman to a new role as Chief Transformation Officer.