The Press Release headline says:
CME Group Signs 10-Year Partnership with Google Cloud to Transform Global Derivatives Markets Through Cloud Adoption
The sub headline says:
Google also makes $1B equity investment in CME Group
CME is a behemoth in derivatives, ranked 10 by market cap in Fintech50Index, but legacy finance does not have a good narrative. As Terry Duffy, Chairman and Chief Executive Officer, CME Group, puts it in the PR “Through this long-term partnership with Google Cloud, CME Group will transform derivatives markets through technology”.
Legacy Finance needs some help, but so does Big Tech. There is a big battle among the Big Tech cloud vendors such as Google, Microsoft and Amazon over who wins the cloud market share battle. By making a $1B equity investment, Google also wins a client as the PR says “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.
Expect more news like this in coming weeks. One big question is who will partner with CBOE, ranked 29 by market cap in Fintech50Index, well below their traditional rival at 10, CME?
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