This latest agreement builds upon an existing relationship between the two organisations, reflecting a commitment to cloud adoption across LSEG’s infrastructure and services.
As part of the partnership, LSEG will continue migrating internal systems to AWS to increase operational resilience, improve data security, and enable faster development and deployment of digital solutions. This move supports LSEG’s broader cloud transformation strategy and its focus on delivering scalable and secure services to financial market participants.
The adoption of AWS technologies, including Amazon Bedrock, is expected to improve the speed and accuracy of risk analytics within LSEG’s Risk Intelligence division. This will allow institutional clients to better manage risk, improve operational agility, and strengthen overall financial resilience.
FTSE Russell, LSEG’s index and data business, will benefit from AWS infrastructure to offer customers improved access to historical and quantitative data. This cloud-enabled model aims to help users uncover complex market trends and reduce time-to-insight while optimising operational costs.
Additionally, LSEG Markets will deploy AWS Outposts to provide consistent, low-latency access to critical services, supporting real-time trading environments and expanding availability in key regions.AWS’s expertise in serving the financial services industry complements LSEG’s ambition to deliver more advanced tools for trading, risk management, and investment decision-making.
The financial services industry operates under strict regulatory mandates, particularly in the EU and UK, where frameworks such as the EBA guidelines on outsourcing and the Bank of England’s operational resilience requirements mandate clear accountability for data processing, geographic storage, and risk controls. These frameworks require financial institutions to maintain full visibility and control over their outsourced technology infrastructure, especially when critical services are hosted in the cloud. LSEG’s use of AWS Outposts addresses these concerns by enabling sensitive workloads and regulated data to remain within local data centres, reducing compliance risk while maintaining cloud flexibility.
The decision also aligns with increased scrutiny from regulatory bodies concerning concentration risk among major cloud providers. Over 65% of UK financial firms’ cloud workloads were hosted by just three hyperscalers in 2023. This growing reliance has led to calls for more robust oversight of cloud outsourcing arrangements. LSEG’s hybrid architecture, which distributes workloads across cloud and on-prem environments, helps mitigate this systemic risk by offering modularity, redundancy, and data localisation key components in meeting evolving supervisory expectations.
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