Google and CME Collaborate on Cutting-Edge Facility for Cloud Trading
Google, part of Alphabet Inc., is collaborating with CME Group Inc. to develop a cloud computing system aimed at moving futures and options trading to the cloud.
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Their 10-year cooperation began in 2021 and made significant progress with a new announcement on Wednesday.
The project will expand the existing CME information center in Aurora, Illinois, alongside new cloud and colocation sites.
The location was chosen to keep trading operations within the Chicago area, avoiding the costs and disruptions of moving. Construction is set to begin later this year.
Google has invested one billion dollars in equity in CME as part of their strategic partnership.
The location was chosen to keep trading operations within the Chicago area, avoiding the costs and disruptions of moving. Construction is set to begin later this year.
This investment will allow CME to leverage Google's cloud services, including data analytics and artificial intelligence tools, aiming to minimize customer disruption and enhance efficiency.
CME has committed to giving clients an 18-month notice before migrating markets to the new platform.
While the cash markets will continue operating from current locations, the matching engine crucial for connecting buyers and sellers will move to the cloud.
This move aligns with broader industry trends where exchanges are increasingly adopting cloud technologies to reduce costs and improve efficiency.
Other examples include Cboe Global Markets Inc. and Nasdaq Inc., which have partnered with companies like Amazon.com Inc. and Snowflake Inc. to enhance their cloud capabilities.
By integrating closely with Chicago's trading ecosystem and utilizing advanced cloud technologies from Google, CME aims to boost trading efficiency and innovation with minimal disruption to its clients.