About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

CME/Google Partnership Aims to Transform Derivatives Markets

Subscribe to our newsletter

CME will migrate all of its markets and technology infrastructure to Google Cloud over the next 10 years, starting with its data and clearing services in 2022, under a 10-year strategic partnership between the two organisations. The arrangement – which CME Chairman and CEO Terry Duffy has said “will transform derivatives markets through technology” – will also see Google investing $1 billion in CME Group.

The deal is a clear indication that the financial markets sector is embracing cloud as a viable platform for core trading technology infrastructure. To date, regulated exchanges, member firms and key service providers such as market data vendors, have relied on dedicated data centres with co-location facilities to house exchange matching engines and to run trading platforms.

Could this deal mark a key turning point for all of this technology to eventually migrate to ‘big tech’ cloud providers?

Last year, AWS completed a proof of concept (POC) with the Singapore Exchange (SGX) and Aquis Exchange, which confirmed the viability of running an exchange matching engine in a cloud environment. The POC demonstrated that acceptable levels of trading latency and jitter can indeed be achieved in the cloud. Other major exchanges, including Nasdaq, are also increasingly rolling out data services in partnership with big tech cloud providers.

CME has stated that the partnership with Google will deliver significant and wide-ranging benefits, including expanded access for more market participants, increased real-time analytics capabilities through the use of Google’s machine learning solutions, more innovation in new products and services, greater efficiencies and higher resilience. To lead the cloud migration process at CME, Ken Vroman, who has been with the company in a variety of management roles since 2001, has been appointed as Chief Transformation Officer.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Re-architecting the trading platform for interoperability, resilience and profitability

Trading platforms have come a long way since the days of exchanging paper certificates and shouting across trading floors, pits and desks in the early 2000s, but there is progress still to be made as firms strive to reduce risk, increase profitability, and make their mark in digital assets trading. This webinar will review the...

BLOG

How to Make the Most of Market Data

The challenges of sourcing, managing and monitoring market data are well rehearsed, but solutions are emerging as financial institutions zero in on their requirements, and data vendors respond. Short term, cost, coverage, accuracy, user rights and compliance are key concerns. Longer term, new approaches to market data such as pay-as-you-go pricing, packaged data and software...

EVENT

ESG Data & Tech Summit London

The ESG Data & Tech Summit will explore challenges around assembling and evaluating ESG data for reporting and the impact of regulatory measures and industry collaboration on transparency and standardisation efforts. Expert speakers will address how the evolving market infrastructure is developing and the role of new technologies and alternative data in improving insight and filling data gaps.

GUIDE

Institutional Digital Assets Handbook 2023

After initial hesitancy, interest in digital assets from institutional market participants has grown over the past three to four years. Early focus inevitably centred on the market opportunities presented by bitcoin and other cryptocurrencies. But this has evolved into a broad acceptance of a potentially meaningful role for digital assets in institutional markets. It’s now...