Under a partnership with Google Cloud, the company will move its technology infrastructure to the latter, starting from 2022, with the migration of data and clearing services to be carried out initially


CME Group enters into a 10-year partnership with Google Cloud. (Credit: liz_noise/Wikimedia Commons)

CME Group, a US-based derivatives marketplace, has secured an investment of $1bn from Google apart from signing a 10-year partnership with Google Cloud to speed up its transition to the cloud.

Google’s equity investment has been made through a new series of non-voting convertible preferred stock of the company.

CME Group’s partnership with Google Cloud will see the company move its technology infrastructure to the latter, starting from 2022. Initially, the company will migrate data and clearing services and will, later on, move all of its markets to the cloud.

CME Group chairman and CEO Terry Duffy said: “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 Chief Executive Officer, 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.”

By using Google Cloud’s network, the derivatives marketplace is expected to scale its infrastructure, while improving access for more market participants. Besides, the move to Google Cloud will streamline costs, and help bring in new users more easily and quickly, said CME Group.

The company further stated that by tapping Google Cloud’s data analytics and machine learning solutions, it can provide on-demand information and toolkits to clients for creating models and algorithms, as well as for real-time risk management.

Using Google Cloud’s technology, CME Group plans to co-innovate new products like risk mitigation tools, user-centric platforms, and analytics services.

The company also expects to streamline its operations and IT infrastructure, while automating its non-trading operations through the partnership.

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

“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.”

Separately, Google Cloud has announced a partnership with the US Air Force Research Laboratory (AFRL) to deploy Google Workspace among some of the latter’s scientists and engineers.