CME Group and Google Cloud Partnering to ‘Transform’ Derivatives Markets

CHICAGO and SUNNYVALE, Calif. — CME Group and Google Cloud are teaming up to accelerate CME’s move to the cloud and “transform” how global derivatives markets operate with technology.

CME Group singed a 10-year strategic partnership with Google Cloud, according to Google Cloud last week.

Under the agreement, CME Group will migrate its technology infrastructure to Google Cloud, beginning next year with data and clearing services and ultimately move all of its markets to the cloud.

“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 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.”

Focus of cloud partnership in derivatives markets

• Expanding access: CME Group will be able to scale its infrastructure, while increasing access for more market participants, optimizing costs, and helping onboard new users more easily and quickly.
• Creating real-time data and analytics capabilities: data analytics and machine learning (ML) 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, 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, optimize its IT infrastructure, and automate non-trading operations.
• Driving resiliency in the financial markets ecosystem: Google Cloud will deliver open source technology standards and enhanced cybersecurity protection, underpinned by a global network.

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“CME Group has a century-long track record of helping investors access new markets and is known for innovation in financial markets,” said Thomas Kurian, CEO, Google Cloud. 

“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 appointed Ken Vroman to a new role as chief transformation officer.

Google also made a $1 billion equity investment in a new series of non-voting convertible preferred stock of CME Group.

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