Fanatics acquires derivatives exchange from BGC Group to expand into prediction markets

Fanatics just bought itself a derivatives exchange. The sports merchandise and betting giant agreed to acquire Water Street Labs, a Designated Contract Market, and CX Clearinghouse, a Derivatives Clearing Organization, from BGC Group. The deal gives Fanatics the regulated infrastructure it needs to run its own prediction market exchange rather than relying on third-party platforms. Financial terms weren’t disclosed. But the strategic value here is hard to overstate: Fanatics is going from intermediary to operator, gaining direct control over the listing and clearing of event-based contracts. From jerseys to derivatives Fanatics launched Fanatics Markets in December 2025, and it acquired Paragon Global Markets in July 2025 to start building its prediction market footprint. It also partnered with Crypto.com Derivatives North America (CDNA) in late 2025 to accelerate its push into event contracts covering sports, finance, and political events. This latest acquisition means Fanatics doesn’t need to rent someone else’s regulatory license anymore. It can list contracts, clear trades, and build the entire experience in-house. Fanatics also plans to collaborate with BGC Group on developing...