The deal is valued at $3.1 billion and is set to be divided evenly between S&P Global and CME Group as each hold a 50% interest. The acquisition is subject to customary purchase price adjustments. 

KKR confirmed that its focus is on increasing OSTTRA’s investments in technology and innovation across its post-trade solutions platform. 

Deal is expected to close in H2 2025, subject to closing conditions and regulatory approval.

“We have long admired OSTTRA for its mission-critical solutions, deep customer relationships, and strong market position, which we believe provide a great foundation for future growth,” said Webster Chua, partner at KKR.

“We look forward to working with the OSTTRA team and leveraging our experience in the tech-enabled and financial services sectors to help the company further innovate and drive value for its customers.”

Read more: Fireside Friday with… CME Group’s Serge Marston

OSTTRA was established in 2021 – a joint venture between CME Group and S&P Global. The firm offers post-trade services across: interest rates, FX, credit and equity asset classes. 

Clients include banks, broker-dealers, asset managers, and other market participants.

Upon completion of the deal, current co-CEOs Guy Rowcliffe and John Stewart will remain at OSTTRA and continue to lead the company.

Terry Duffy, CME group chair and chief executive, said: “OSTTRA has generated significant growth over the past several years, and we are pleased with the role our joint venture played in driving the company forward. Looking ahead, as the post-trade marketplace continues to evolve, we are confident that KKR will further scale this business and extend the important efficiencies that OSTTRA delivers to clients.”

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Tim Brennan

The move is set to provide an enhanced, more innovative and diversified offering for clients.

Tim Brennan, head of capital markets at S&P Dow Jones Indices (DJI), highlighted the key benefits of the collaboration: “By providing the underlying view into US dividend trends through our S&P 500 Dividend Points Index (Annual), coupled with CME Group’s financial products, market participants can track and express their views on an important component of equity returns.”

The new options contracts join previous additions to the dividend futures suite at CME Group, including: S&P 500 Annual and Quarterly Dividend Index futures, Nasdaq-100 Annual Dividend Index futures, and Russell 2000 Annual Dividend Index futures.

Read more: CME Group on the evolving FX futures and options landscape

Paul Woolman, global head of equity products at CME Group, said: “Client demand for managing risk and seeking investment opportunities around dividend exposure has accelerated the growth of our listed and centrally cleared dividend futures.

“Based on the success of our S&P 500 Annual Dividend Index futures, which traded more than 900,000 contracts in 2023, we are pleased to introduce these new options contracts to provide market participants with even greater flexibility to customise their dividend-related strategies.”

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