Google to invest $1 billion in CME Group, agrees cloud computing deal

Google Cloud

Google has invested $1 billion in CME Group and has struck a separate deal to move the futures exchange operator’s trading systems to the cloud, the companies have said.

Under the terms of the 10-year partnership between Google and CME, the Chicago-based exchange operator will begin moving its technology infrastructure to Google Cloud next year.

The deal with CME marks a big win for Google’s cloud business, which competes against Inc and Microsoft for large, lucrative contracts from blue-chip Fortune 500 companies.

The deal also gives Google a foothold in the financial services sector, which is starting to invest big money on cloud computing services.

Google’s $1 billion equity investment was in the form of non-voting convertible preferred stock of CME, the companies added.

The partnership with Google would help CME provide easy access for more market participants, optimize costs and streamline IT infrastructure and other operations, the companies said.

Last year, Amazon and two stock exchanges – Singapore Exchange SGX and London-based Aquis Exchange – undertook a pilot program which they said showed moving share trading to cloud computing from costly physical servers could save money and reduce the potential for outages.

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The team at Platform Executive hope you have enjoyed the ‘Google to invest $1 billion in CME Group, agrees cloud computing deal‘ article. Automatic translation from English to a growing list of languages via Google AI Cloud Translation. Initial reporting via our official content partners at Thomson Reuters. Reporting by Manya Saini in Bengaluru. Additional reporting by Niket Nishant. Editing by Krishna Chandra Eluri.

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