Fanatics acquires BGC Group assets to build its own federally regulated prediction market exchange

Fanatics just made its boldest move yet in the prediction market space. The company announced an agreement to acquire Water Street Labs, LLC and CX Clearinghouse, L.P. from BGC Group, giving it direct ownership of CFTC-registered exchange and clearinghouse infrastructure. From licensed partner to full owner Fanatics Markets launched in December 2025, offering event contracts across sports, finance, and politics. It currently operates in 23 US states and four territories. Until now, the platform relied on a partnership with Crypto.com | Derivatives North America (CDNA) for its underlying exchange infrastructure. By acquiring both Water Street Labs (the exchange entity) and CX Clearinghouse (the clearing entity), Fanatics gains direct control over two critical functions: listing contracts and clearing trades. Owning both means Fanatics can set its own rules for what contracts get listed, how they’re priced, and how counterparty risk is managed. Why BGC Group’s infrastructure matters BGC Group is a major player in institutional financial services, known for brokerage and trading technology used by banks and hedge funds. The planned joint development of market data and analytics produc...