“An important signal for the financial services industry”
In a major coup for Microsoft, it has closed a deal with German stock exchange group Deutsche Börse AG that will see the operator of the Frankfurt Stock Exchange – and a host of other prominent trading platforms – begin to shift services to Azure.
The contract is an industry milestone and a significant indicator that European regulators are overcoming their historical distrust of the cloud, given the centrality of the €23 billion (by market cap) Deutsche Börse to a range of European markets.
The contract takes “regulated workload” into the cloud. This includes services that are typically provided by financial institutions like Deutsche Börse themselves and are considered essential for their critical core business.
Operating these workloads in a cloud environment requires adherence to a raft of strict EU regulations.
Sabine Bendiek, Managing Director of Microsoft Germany said: “This step is an important signal for cloud adoption in the entire financial industry and other industries with regulated workloads. With our joint approach, Deutsche Börse and Microsoft enable all companies in the European financial market to make full use of cloud services.”
Regulators Require “Unrestricted Audit Rights”
Joint approach? As the two explained in a post this week, they have been collaborating for some time to develop a collaborative cloud audit group.
Deutsche Börse said: “EU financial institutions are required to ensure unrestricted audit rights and capability to perform audits in case they outsource material workloads to cloud service providers. As a result, Deutsche Börse initiated a collaborative cloud audit group (CCAG) in 2017 in order to comply with these regulatory requirements.”
The company added that these audits are performed collectively, “significantly reducing the effort for both financial institutions and cloud service providers. This industry-wide initiative includes large EU financial institutions and insurance companies. The CCAG and Microsoft will perform regular pooled audits on an annual basis.”
Deutsche Börse Migration Starts with SAP
Accelerated cloud migration will start this year, with the development and testing of business applications and parts of the Deutsche Börse SAP environment in Azure.
The first material regulated workload, such as core services to disseminate data “will follow subsequently in close alignment with the relevant regulatory authorities”, the company said, suggesting regulators will be watching closely.
The contract also includes deployment of Microsoft 365.