CME Group, Google announce $1 billion cloud computing venture
The Chicago futures market CME Group and Google announced an agreement Thursday to move financial trading technology to cloud computing systems, a deal backed by a $1 billion investment.
The 10-year partnership, to be implemented in phases, includes Google's commitment to buy $1 billion in nonvoting preferred stock in CME. The stock can be converted into common equity shares in CME. The current market value of CME is about $80 billion.
The partnership "will transform derivatives markets through technology, expanding access and creating efficiencies for all market participants," CME Chairman Terry Duffy said in a news release. "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."
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