雅虎香港財經 Google and CME to Build New Facility to Move Trading Into Cloud
(Bloomberg) -- Alphabet Inc.’s Google will work with CME Group Inc. to build a new cloud-computing network that will enable the exchange operator to shift its futures and options trading into the cloud.
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The two firms will develop cloud and colocation facilities — space rented to clients for their own IT equipment — next to CME’s existing data center in Aurora, Illinois, executives said Wednesday. Construction will start later this year and the transition will happen in phases, they said.
CME and Google began a 10-year alliance in 2021 to migrate data, clearing services and eventually trading into the cloud. As part of the agreement, Google made a $1 billion equity investment in the derivatives exchange.
“This is a significant step forward in our partnership,” CME Chief Executive Officer Terry Duffy said in a statement.
The decision to keep the data center in the Chicago area comes after market makers and high-speed trading firms opposed a move elsewhere, according to people familiar with the matter. It highlights how difficult it would be for the exchange to move away from the region, which has seen a number of high-profile corporate departures in recent years including Ken Griffin’s Citadel, Boeing Co., and Caterpillar Inc.
Traders like to have infrastructure near or in the data center to ensure information travels faster, giving them a slim advantage over others that aren’t nearby. Building out infrastructure elsewhere would take time and result in costs for firms, said the people, who asked not to be identified because the discussions are private. Talks between the exchange and traders included a potential move to Google data centers in Virginia and Ohio, the people said.
“We decided to build the new facility in Aurora to ensure minimal disruption for our clients,” CME’s Duffy said.
“This will maximize the opportunity for market participants to leverage a combination of specialized cloud services and existing investments in the area to drive differentiation and efficiencies,” said Rohit Bhat, managing director of capital markets, exchanges and digital assets at Google Cloud.
CME said it will provide its clients with 18 months’ notice before the markets move to the new platform. The company’s cash markets will continue to operate in their current facilities, not moving to the cloud, it said.
Firms that migrate trading to the new facility will also have access to Google’s cloud services including artificial intelligence tools and data analytics, CME and Google said. The matching engine, which links buyers and sellers in a trade, will move to the cloud.
CME customers will be able to test cloud-based trading in the Dallas Google Cloud facility, which will eventually become a disaster-recovery center, the firms said.
Exchanges have long professed a goal of moving to cloud-based platforms as a way to reduce costs, but technology challenges mean the shift has been gradual. Modern trading of stocks, Treasuries, futures and other assets is incredibly fast — with the pace sometimes measured in nanoseconds, or billionths of a second — and exchanges try to ensure that all market players get price updates and other vital data at the same time.
Nasdaq Inc. partnered with Amazon.com Inc. to migrate its North American markets to the cloud from 2022, starting with one of its options exchanges and later an additional options and bond exchange. The two groups developed a cloud platform inside Nasdaq’s primary data center in Carteret, New Jersey.
Chicago-based Cboe Global Markets Inc. launched its own cloud-based market data streaming service in 2021, aiming to increase distribution of real-time information globally. It later partnered with Snowflake Inc., a cloud-based data management company, to focus on enhancing Cboe’s internal data and analytics capabilities, but not trading through the cloud.
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