Earlier this summer, CME Group and Google Cloud announced plans to create a new, ultra-low latency private Google Cloud region and co-location facility in Aurora, Illinois, marking a major step forward in their strategic partnership, originally announced in November 2021. With these plans now taking shape, the CME has published “CME Globex on Google Cloud,” a detailed roadmap and overview of how the exchange’s listed derivatives platform, Globex, will be migrated to the new Google Cloud region.
The migration will introduce new co-location and connectivity options, including self-managed infrastructure and Google’s specialised infrastructure-as-a-service, both offering equal network latency to the markets. Clients will be able choose from various co-location offerings, from traditional setups to advanced, on-demand cloud technology, or a hybrid combination of both.
The private Google Cloud Chicago region will host a specialised platform designed to support the global trading of CME Group’s futures and options markets, offering ultra-low-latency networking and high-performance computing. The platform aims to enhance client flexibility, operational efficiency, and access to Google Cloud services, allowing clients to experiment, test, and deploy strategies without impacting their production environments.
The design, jointly developed by Google Cloud and CME Group, merges the scalability and flexibility of cloud operations with the low latency and determinism expected by financial institutions. Additionally, before the migration begins, clients can continue accessing on-premise listed derivative markets via the Google Cloud Network and Point of Presence (PoP) solutions, utilising current systems like the iLink Convenience Gateways and Drop Copy for risk management, along with new market data solutions on Google Cloud’s Premium Network Tier.
CME Group has committed to provide at least 18 months’ notice before making any market moves to the new platform. To prepare for the transition however, the exchange has advised its Globex clients to begin evaluating their cloud strategies, internal skills, partner/vendor readiness, and onboarding processes.
Although no dates have yet been given, CME’s proposed roadmap for the migration is as follows:
1. Education and Planning
CME Group will engage with clients interested in new co-location services or Google Cloud offerings to discuss design and migration strategies. Clients will need to establish foundational cloud processes tailored to their specific needs, assess their current expertise in Google Cloud, and begin upskilling their teams or aligning with suitable vendors and partners.
2. CME Globex Preview Client Validation
Clients participating in the Preview phase will access a CME Globex Preview and DR environment within private zones in the Google Cloud Dallas region. This phase includes designing applications and network architectures to validate the performance of CME Globex on Ultra Low Latency Google Compute Engine (ULL GCE) instances and deploying these applications for testing.
3. CME Globex Production Client Validation
Clients opting for new co-location offerings in the production environment will deploy their applications to validate ULL GCE instances or set up client hardware in the Custom Hardware Co-location (CHC) facility.
4. CME Globex Markets Migration
The migration will begin with phased client access to CME Globex listed derivative markets in the private Google Cloud Chicago region, with a detailed schedule to be announced beforehand. Once the migration is complete, clients will have full access to all CME Globex listed derivatives markets in the new private Google Cloud Chicago region.
Clients will be able to access migrated markets – including the new CHC, ULL GCE instances, and any other Google Cloud regions or network PoPs – using their existing connectivity solutions.
Once the migration of all CME Globex futures and options markets is complete, CME Globex will operate entirely within the private Google Cloud Chicago region.
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