The Pan-European exchange chief executive Stephane Boujnah said that LONDON Euronext will not mimic rivals by moving critical services to outside cloud computers due to regulatory concerns.
The London Stock Exchange Group, CME and Nasdaq have announced partnerships with cloud computing giants like Alphabet, Amazon and Microsoft, with Deutsche Boerse joining them on Thursday in a strategic partnership with Google.
One of the reasons why we are cautious about the use of data centres of Microsoft, Google and Amazon for critical parts of what we do is because our core supervisors and regulators are very cautious, Boujnah told Reuters on Thursday.
He said that Euronext only uses a cloud provider for storing historical data.
Boujnah said that when it comes to strategic applications such as real-time data and operations of the market, we do not want them to be stored and operated by the data centres of companies that have decision-making centres outside the EU, and physical infrastructure outside the EU.
Euronext said earlier on Thursday it had to postpone a weekly report on positions held in its commodity derivatives until further notice, because of a ransomware attack on financial data firm ION Group outside the bloc.
Boujnah said that the dependency on certain providers was carefully examined as Euronext reported full year earnings.
A rethink is needed on how finance is becoming increasingly dependent on outside parties like cloud firms, which will be addressed in the new EU rules, according to the Bank for International Settlements earlier this week.
Euronext reported record full-year 2022 revenues and income of 1.418 billion euros $1.52 billion, up 9.3 per cent on 2021 due to the acquisition of Borsa Italiana.
The earnings per share in 2022 was down 4.8 per cent at 5.21 euros because of a higher share count, and the company proposes to pay a dividend of 2.22 euros per share.
The savings are nearly double what was promised at the deal's outset.
Boujnah said that Euronext has a successful track record in integrating acquired companies.