The CME Group, which operates the world’s largest futures exchange, will begin moving its trading systems to the cloud next year as part of a deal that involves a $1 billion investment by Google.
The 10-year partnership, which Chicago-based CME announced Thursday, will help the exchange streamline operations, open up access to its markets and develop new tools and services.
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“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,” Terry Duffy, CME’s chair and CEO, said in a news release. “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.”
Duffy appointed a chief transformation officer, Ken Vroman, to facilitate the cloud migration, which will start with CME’s data and clearing services. Vroman has been with CME since 2001 and has held a variety of senior leadership roles.
Google will make its $1 billion investment by purchasing nonvoting convertible preferred shares of CME Group, according to the news release.
CME announced in May that most of its trading pits would not reopen after being shuttered by the COVID-19 pandemic. The exchange said at the time that the only “open-outcry” trading that would continue would be in the Eurodollar options pit, which allows electronic trading.