Google Cloud’s Rohit Bhat Discusses the Future of Data, AI, and the Cloud in Financial Markets

Mar 27, 2024

John Lothian

John Lothian

Executive Chairman and CEO

Data is the next gold rush, says Google Cloud’s Rohit Bhat. Bhat was interviewed at FIA’s International Futures Conference in Boca Raton, FL by John Lothian News for the JLN Industry Leader series sponsored by Wedbush. Bhat spoke about the critical role of data, artificial intelligence (AI), and cloud technology in driving innovation and differentiation. 

“Data is going to be the next great gold rush, if you will; institutions that understand how to extract value quicker and build differentiation as a result of that are the ones that are going to have a differentiated position in the market moving forward,” he said. 

Bhat said there has been a step function change for cloud technologies over the last 24 to 36 months, driven by increased trading volumes, analysis activity and risk management volumes and by the variety of information being brought to light. He said new financial instruments and asset classes and traditional finance have had a “step function change,” suddenly shifting to a new level. Bhat said the next steps for the cloud are trade execution and trade flow. 

Google Cloud takes a nuanced approach to markets depending on their needs, Bhat said when discussing how the company works with firms in the capital markets and digital asset space. He said resilience and scalability must be present, while maintaining cost-effectiveness. The strategy involves understanding various market structures and leveraging assets like infrastructure, data analytics, and machine learning to enable participants to operate efficiently and differentiate themselves. This involves tuning the entire environment, from infrastructure to advanced AI capabilities, to serve the diverse needs of market constituents, Bhat said.

Bhat also discussed Google Cloud’s partnership with CME Group and milestones achieved in enhancing post-trade processing efficiency. “Out of the estate of 400 plus applications that are at the CME, we’ve moved a non-trivial amount of those applications already to the cloud and are running a production scale,” he said. Bhat pointed to the CME’s announcement about FedRAMP, a new service that leverages Google Cloud’s distribution and analytic capabilities to bring new services to the market and its clients.

Google Cloud is going to talk more about the principles of low latency, deterministic networking and fair and equal access capabilities at scale, he said.  

Bhat said efficiencies and knowledge scaling seem to be the sweet spot for AI technology. He also spoke about how Google Cloud is helping financial institutions adapt to AI technology safely and responsibly. He said that is a core principle for Google Cloud. He emphasized the importance of an open environment, secure platforms, and collaboration between technology providers and financial firms to drive innovation and meet evolving client expectations.

As financial services continue to evolve, Bhat emphasized the pivotal role of technology in delivering customized experiences, improving operational efficiency, and fostering collaboration across the industry. He said the cloud could play an interesting role in tokenization in enhancing settlement processes and simplifying complex markets, going from experimentation very quickly to production in blockchain as a service.

 

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