Google Invests $1 Billion in CME as Part of Cloud Move
Posted by Colin Lambert. Last updated: November 5, 2021
CME Group and Google Cloud have unveiled a 10-year strategic partnership to accelerate CME’s move to the cloud and transform how global derivatives markets operate with technology. As part of the agreement, Google has made a $1 billion investment in non-voting convertible preferred stock of CME Group.
Under the agreement, CME will migrate its technology infrastructure to Google Cloud beginning next year with data and clearing services, and eventually move all of its markets to the cloud. The partnership will focus on delivering significant benefits to all market participants by expanding access to, and scaling of, CME’s infrastructure; and the creation of real-time data and analytics capabilities using Google Cloud’s data analytics and machine learning solutions.
It will also help CME introducing new products and services, the firms say, including risk mitigation tools, analytics services, and user-centric platforms. The two companies add they will also continue to explore ways to work together on go-to-market initiatives that deliver new innovations for CME Group’s customers.
By moving to the cloud, CME says it will also be able to streamline operations, optimise its IT infrastructure, and automate non-trading operations – Google Cloud will deliver open source technology standards and enhanced cybersecurity protection, underpinned by a global network.
“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 Terry Duffy, chairman and CEO, CME Group. “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.”
Thomas Kurian, CEO, Google Cloud, adds, “CME Group has a century-long track record of helping investors access new markets and is known for innovation in financial markets. 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, 20-year CME veteran Ken Vroman has been appointed to a new role as Chief Transformation Officer.