US-based financial derivatives exchange giant CME Group has signed a 10-year digital transformation and co-innovation deal with Google Cloud.
The arrangement will see CME Group start to migrate its entire technology infrastructure to Google’s public cloud from the beginning of next year, with its data and clearing services workloads among the first to be moved off-premise.
In a statement, CME Group said the cloud migration portion of the deal will make it easier for the firm to scale its operations, while making its services accessible to a broader range of customers.
“By moving to the cloud, CME Group will be able to streamline operations, optimise its IT infrastructure, and automate non-trading operations,” the statement said.
Furthermore, it will also provide CME Group with access to Google’s portfolio of data management and analytics tools, which – in turn – will allow it to expand the range of services it can offer to customers.
The statement added: “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.”
The deal will also see the pair work together on bringing to market jointly created products, including risk mitigation tools and data analytics services, that will be made available to CME Group’s customers in due course.
Additionally, Google has made a $1bn equity investment in CME Group as part of the deal.
“CME Group has a century-long track record of helping investors access new markets and is known for innovation in financial markets,” said 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.”
Terry Duffy, chairman and CEO of CME Group, said the partnership looks set to have a transformative impact on the company and how derivative markets operate overall.
“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.”