About a-team Marketing Services
The leading knowledge platform for the financial technology industry
The leading 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: Deploying market infrastructure managed services

Traditionally, trading organisations have procured and managed hardware themselves or through a third-party to support data services in a hosted environment – but as large firms look for efficiencies and smaller firms seek external help so they can focus on their core business, a shift in infrastructure ownership is needed. This can be achieved by...

BLOG

Market Data in the Virtual Reality World

By Yousaf Hafeez, Head of Business Development for Financial Solutions at BT If you think that market data volumes are high today, you’ve seen nothing yet! With virtual reality (VR) tools for trading edging closer to becoming practically usable on trading floors, any larger scale uptake of such applications will mean an exponential rise in data...

EVENT

Data Management Summit USA Virtual (Redirected)

Now in its 11th year, the Data Management Summit USA Virtual explores the shift to the new world where data is redefining the operating model and firms are seeking to unlock value via data transformation projects for enterprise gain and competitive edge.

GUIDE

The Data Management Implications of Solvency II

Bombarded by a barrage of incoming regulations, data managers in Europe are looking for the ‘golden copy’ of regulatory requirements: the compliance solution that will give them most bang for the buck in meeting the demands of the rest of the regulations they are faced with. Solvency II may come close as this ‘golden regulation’:...