Google Cloud has announced to invest $1 billion in CME Group, the world’s leading derivatives marketplace, as part of a 10-year strategic partnership between the two companies.
The move will help accelerate CME Group’s move to the cloud and transform how global derivatives markets operate with technology, the company said in a statement late on Thursday.
“CME Group has a century-long track record of helping investors access new markets and is known for innovation in financial markets,” said Thomas Kurian, CEO, Google Cloud.
“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 infrastru”ture,” he added.
Under the agreement, CME Group will migrate its technology infrastructure to Google Cloud beginning next year with data and clearing services, and eventually moving all of its markets to the Cloud.
CME Group will be able to scale its infrastructure, while increasing access for more market participants, optimising costs, and helping onboard new users more easily and quickly.
“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 CEO, CME Group.
With Google Cloud’s technology, CME Group will also co-innovate new products, such as risk mitigation tools, analytics services, and user-centric platforms.
Google’s $1 billion equity investment will be in a new series of non-voting convertible preferred stock of CME Group.
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(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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