World's Largest Derivatives Exchange CME Signs $1 Billion Deal with Google Cloud

CME Exchange, Homepage

[Asia Economy Reporter Kwon Jae-hee] Google, a latecomer in the cloud market, has signed a $1 billion (approximately 1.2 trillion KRW) contract with CME Group, the world's largest futures exchange.

According to major foreign media on the 4th (local time), CME Group announced that "we have signed a strategic investment cooperation agreement with Google Cloud to integrate the global derivatives system with cloud computing technology."

Google and CME Group will work on migrating trading systems and data to the cloud computing platform over the next 10 years.

CME Group stated, "Starting next year, data and clearing services will be migrated to Google Cloud, and eventually, the entire market's technology infrastructure will be moved."

Through this, CME Group expects to expand market accessibility and efficiency, accelerate the onboarding of new customers through enhanced automation, and increase the resilience of market infrastructure.

Terry Duffy, Chairman and CEO of CME Group, said, "This will transform the derivatives market," adding, "We will communicate closely with customers and ensure a smooth transition."

Based in Chicago, USA, CME Group was formed by the merger of the Chicago Board of Trade (CBOT), the first futures exchange in the US, and its competitor, the Chicago Mercantile Exchange (CME), in 2007. Currently, it operates four exchanges including CME, CBOT, New York Mercantile Exchange (NYMEX), and Commodity Exchange (COMEX), managing large derivatives markets including interest rates, equities, and commodity price tracking. In the third quarter of this year (July to September 2021) alone, the average daily trading volume reached 17.8 million contracts, with a market capitalization of $80 billion (approximately 95 trillion KRW).

Regarding this contract, Thomas Kurian, CEO of Google Cloud, said, "Google's expertise will help accelerate technological innovation in capital market infrastructure."

Major foreign media have evaluated this contract as "a big win for Google." As of last year, Amazon holds the largest share of the global cloud market at 40.8%, Microsoft (MS) is second with 19.7%, Alibaba is third with 9.5%, and Google ranks fourth with a 6.1% market share, following Alibaba.

Meanwhile, CME Group has appointed Ken Broman, who was previously in charge of global growth operations, as the Chief Digital Officer (CDO) to oversee this project.

This content was produced with the assistance of AI translation services.