CME moves core data to the cloud, readies new data products, analytics
The exchange group has migrated its core data to the cloud as part of its 10-year partnership with Google Cloud, and is now looking ahead to further migrations and leveraging the cloud to power new data products.
CME Group has completed the migration of its core data to the cloud, as part of its partnership with search and cloud giant Google, with further migrations and new product launches enabled by the new cloud capabilities planned for this year, officials said during the exchange’s fourth quarter and full-year financial results.
The exchange also anticipates substantial progress this year in migrating its clearing, business information systems, and market regulatory systems to Google’s cloud platform.
Overall, CME spent $56 million on cloud migration in 2023, slightly less than the $60 million projected during the Q2 earnings call. The exchange expects that expenses will increase by $60 million year-over-year with $15 million of that sum allocated to increasing migration expenses, said Lynne Fitzpatrick, chief financial officer at CME.
Total technology spend was $218.7 million for the year, up from $188.6 million in the previous year.
The exchange’s data business and its clearing arm were the first divisions to migrate to Google’s cloud, under a 10-year partnership, announced in 2021, to shift CME’s infrastructure to the cloud. Among the key aims of the migration are that Google Cloud’s data analytics and machine-learning solutions help CME Group provide its clients with information and toolkits for developing models, algorithms, and real-time risk management, and collaborating on new products, such as risk mitigation tools, analytics, services and user-centric platforms.
One new product that CME plans to roll out later this year is trade execution analytics, which CME chief commercial officer Julie Winkler said is “something very unique in term of our ability to use proprietary data and benchmarking.”
“We’ve been really focused on where we can advance our data services business,” Winkler said.
Cloud cover
Progress in exchange-cloud provider partnerships was plentiful in 2023. Nasdaq completed the migration of its Nasdaq Bond Exchange to Amazon Web Services’ cloud, marking the second Nasdaq marketplace to move a matching engine to the cloud. Nasdaq and AWS announced in 2021 that the exchange operator would migrate its markets, market data, and back-office and clearing operations to the cloud over a 10-year period. The migration started with the MRX options market in December 2022, and the next was the GemX options market (the former ISE Gemini exchange platform) in late 2023.
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