CME Group Taps Google in a Bid to Develop its Derivatives Marketplace

CME Group, the parent company of the Chicago Mercantile Exchange has inked a decade-long partnership with the tech giant, Google as it looks to develop its derivatives marketplace. As announced by the trading platform, the partnership will accelerate the group’s transition into the cloud, as it taps the technological superiority of Google Cloud to enhance its broad product offerings.

The planned move to the cloud which is billed to commence in the coming year will take a phased approach in order not to disrupt the firm’s current market system.

“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.”

Tapping on the Google Cloud infrastructure, CME Group’s data, clearing services, and the entirety of its digital ecosystem will be integrated in such a way that market participants will receive significant benefits from the product offering.

Google Makes $1B Equity Contribution in CME Group 

In addition to the cloud infrastructural provisions it is set to offer, the CME Group also announced that Google invested the sum of $1 billion to take up equity in the company. With more than a decade of pioneering innovation in trading activities, the CME Group is also notably taking the lead in pushing cryptocurrency derivative products.

Following the launch of derivatives markets for the duo of Bitcoin and Ethereum, TheCoinRise reported CME Group’s flagship Micro derivatives product for these top coins in a bid to enjoin broader access to the financial product. The Google investment, as well as recent partnerships with crypto firms, represents an indirect way for the company to tap into the growing embrace of digital currency products and assets in general.

“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 infrastructure.”

In a bid to ease the adoption of Google’s Cloud infrastructure, the CME Group Chairman, Terry Duffy has appointed Ken Vroman to serve as the firm’s Chief Transformation Officer.