Microsoft’s New Investments
It’s Microsoft’s turn. Co-founded by Bill Gates, big tech announced this Monday (12/12), the acquisition of a 4% stake in the London Stock Exchange Group, the Londrina stock exchange.
Estimated at US$ 2 billion, the negotiation already foresees the transfer of LSEG’s data to Azure, Microsoft’s cloud platform, including a new data infrastructure and analysis and modeling response for the London exchange in its strategic partnership .
The partnership between Microsoft and LSEG began its planning about a year ago, with a forecast to last ten years. This agreement was made with a guarantee that the technology company would obtain a seat on the board of the London Stock Exchange.
In the statement surrounding the transaction, Microsoft President and CEO Satya Nadella says that financial institutions will be transformed in terms of searching, interacting and transacting across asset classes, thanks to technological advances and sintético intelligence.
In the note related to the agreement, David Scwimmer, CEO of the English exchange, defined the partnership as an important milestone in LSEG’s journey, in order to become the world’s main infrastructure in relation to financial markets and data business.
LSEG is recognized as one of the largest providers of financial data and infrastructure. It has a market cap of approximately $52.2 billion, the institution behind it, like the Italian stock exchange.
As usual with cloud infrastructure contracts, LSEG has undertaken to spend, during the term of the agreement, a minimum of US$2.8 billion during the current partnership with Microsoft.
Microsoft’s proximity to LSEG is also an example of mobility in which the global giants of cloud computing services have been approaching ties with companies in the financial sector – something seen as apprehension by regulatory agencies.
In November, the European Union strengthened rules regarding the use of cloud services by financial institutions. The United Kingdom will follow the same line. The fear is the overconfidence of stock exchanges, banks and insurance companies in the few providers of cloud computing.
In cases of failure in some services, the impact will be great, reverberating in financial systems around the world. Last month, Google made a $1 billion investment in US CME Group, the world’s largest derivatives exchange. Amazon and Nasdaq also signed a partnership in the same month.