Cboe’s Partnership Signals a Trend Toward Cloud-based Systems

Cboe’s announcement that it will use cloud data specialist Snowflake for its data and analytics migration, is the latest in what has been a string of announcements from major financial institutions looking to upgrade systems in partnership with technology firms. According to a story in the Tabb Forum, Cboe’s move to the cloud follows Google’s $1 billion investment in derivatives exchange CME last November, while NatWest Markets recently announced plans to transition to Google cloud. Some of the biggest names in capital markets moving away from on-premises environments signals that cloud is, undoubtedly, the future of market infrastructure. There are multiple reasons to believe that firms are shifting towards this technology as a central component of their technology stack. Cloud computing has already had a significant impact on banking and research from last year shows that the vast majority of trading in the $6.6 trillion-a-day FX markets is expected to migrate to the cloud over the next five years globally.