Fanatics announced today it will acquire Water Street Labs and CX Clearinghouse from BGC Group.

The transaction involves Water Street Labs, a Commodity Futures Trading Commission registered Designated Contract Market, and CX Clearinghouse, a CFTC registered Derivatives Clearing Organization. The acquisition will allow Fanatics to operate a federally regulated prediction market exchange through its Fanatics Markets platform.

The companies said they will partner to connect retail-focused prediction markets with institutional marketplaces. BGC will contribute its market data and analytics capabilities to develop client data products combining prediction market sentiment with traditional financial market data.

“BGC are experts in the financial services industry and, like Fanatics, have built their business on a foundation of cutting-edge technology, innovation, and exceptional talent,” said Matt King, CEO of Fanatics Betting and Gaming.

John Abularrage, BGC Co-CEO, stated, “This represents an important strategic step for BGC to expand our data and analytics capabilities while combining our institutional expertise with Fanatics’ consumer reach.”

Fanatics Markets launched in December 2025 and operates in 23 states and four U.S. territories on iOS, Android and web platforms. The platform offers prediction market trading on sports events and outcomes.

BGC Group is a global brokerage and financial technology company servicing financial markets. The company’s clients include banks, broker-dealers, investment banks, trading firms, hedge funds, governments and corporations.