CME and Google Launch Private Cloud Region for Markets
Posted by Colin Lambert. Last updated: June 27, 2024
CME Group and Google Cloud have unveiled the next stage of their three-year partnership by announcing plans to build a private Google Cloud region and co-location facility in Aurora, Illinois, to support CME’s markets.
The new facility will offer derivatives traders cloud-based, ultra-low-latency networking, and high-performance computing, the firm says, adding that locating the platform in the Chicago area will allow CME clients to utilise existing connectivity options and access points to other global markets. Clients can choose between self-managed infrastructure in the co-location facility or Google Cloud’s specialised infrastructure-as-a-service offering, both with equal network latency to the exchange.
The new platform will offer expanded flexibility, strengthened operational efficiencies, and increased access to cloud services, and artificial intelligence (AI) capabilities, all of which will deepen the value proposition for market users around the globe, CME says. For example, it points out that clients will be enabled to experiment, test, and deploy new strategies without impacting their production trading environments.
Market participants that migrate to the cloud can access Google Cloud’s network, AI and data capabilities, including products like BigQuery and AlloyDB, and its AI and machine learning platform, Vertex AI. CME says financial institutions will be able to experiment with new modelling techniques such as time-series forecasting and simplify access to insights with generative AI.
“This is a significant step forward in our partnership with Google Cloud that is revolutionising our industry,” says CME Group chairman and CEO Terry Duffy. “Located within close proximity to our current data centre campus, and with disaster recovery facilities in Dallas, Texas, Google Cloud’s new specialised platform will extend the benefits we can provide to our clients through next-generation cloud technology, expanded access and efficiencies, a broader range of customized connectivity options, and faster product development, with minimal disruption to their current operations.”
Thomas Kurian, CEO of Google Cloud, adds, “Our latest milestone with CME Group builds on our shared goal to accelerate CME’s move to the cloud and innovate capital markets infrastructure worldwide. Through our collaboration, we’re harnessing the best of cloud computing, data analytics, and AI, while respecting the existing custom hardware requirements of market participants to bring low latency, deterministic, and scalable trading environments to CME Group customers and the broader financial markets.”
Development of the platform is underway, the firm say, starting with capabilities available for customer testing in the Dallas Google Cloud region, which will eventually become the disaster recovery facility. Construction of the private cloud region in Aurora is scheduled to begin this year and CMNE says it expects to provide clients with at least 18 months advance notice before CME Group markets move to the new platform. CME Group cash markets will continue to operate in their current facilities as they do today.
