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Barrett founder and chief executive of Adaptive Financial Consulting .
In 2020 , the Singapore Exchange ( SGX ) completed a proof of concept with Amazon to build a cloud-native exchange , whilst Deutsche Bank signed an innovation partnership with Google Cloud the same year . Following this , Google and CME Group struck a 10-year deal in November 2021 to partner and move the exchange ’ s trading systems to the cloud ( with Google at the same time , separately , investing a billion dollars in the business ) and in the same month Amazon ( AWS ) and Nasdaq signed a multiyear agreement aimed at jointly fostering a new cloudbased market infrastructure and migrating every exchange to the cloud by 2028 .
More recently , Microsoft and the London Stock Exchange launched a 10-year strategic partnership back in December 2022 also focused on developing cloud infrastructure solutions , whilst in February last year , Google Cloud officially became Deutsche Börse Groups ’ preferred cloud partner for the next decade .
But we must ask ourselves – why ? Why are these cloud providers – hugely profitable in their own right – injecting money into exchanges and seemingly competing for market share across the capital markets landscape in order to assist the trading ecosystem with their shift ?
“ It ' s difficult to find a major exchange that hasn ' t had a formal partnership or a significant investment from one of the major cloud service providers in the last couple of years .”
MATT BARRETT , FOUNDER AND CHIEF EXECUTIVE OF ADAPTIVE FINANCIAL CONSULTING
64 // TheTRADE // Q1 2024