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CME Group (NASDAQ:CME) has partnered with Google Cloud (NASDAQ:GOOG)(NASDAQ:GOOGL) to develop a private cloud region and new platform to support a global trading market for futures and options, the companies announced Wednesday.
Located in Aurora, Ill., the specialized platform “will enable a number of benefits for CME Group’s clients, including expanded flexibility, strengthened operational efficiencies, and increased access to cloud services, and artificial intelligence capabilities, all of which will deepen the value proposition for market users around the globe,” the companies said.
The location of the facility will allow existing CME Group clients to choose between existing connectivity options or the new private cloud. Google data cloud products and Vertex AI, a machine learning platform, will enable users to experiment and tests with models and forecasts created through generative AI. Construction is expected to begin this year.
“Through our collaboration, we’re harnessing the best of cloud computing, data analytics, and AI, while respecting the existing custom hardware requirements of market participants to bring low latency, deterministic, and scalable trading environments to CME Group customers and the broader financial markets,” said Google Cloud CEO Thomas Kurian.
CME Group said it will provide clients with an 18-month notice before markets moves to the new platform, and CME Group cash markets will continue to operate in their current facilities.
The new platform will first be tested in the Dallas Google Cloud region, which will later serve as a disaster recovery facility.
