Fanatics Acquires Regulated Exchange and Clearinghouse for Trading Expansion

Fanatics, a company known for its sports-focused consumer platform, has made a significant move into the world of regulated cryptocurrency and derivatives trading. The company has acquired Water Street Labs and CX Clearinghouse from BGC Group, gaining control over a Designated Contract Market and a Derivatives Clearing Organization under CFTC oversight.

This acquisition allows Fanatics Markets to directly list, execute, and clear prediction market contracts without relying on third-party infrastructure. The company will now be able to provide its customers with a fully integrated trading experience.

The partnership between BGC Group and Fanatics also aims to build a prediction markets ecosystem that connects retail traders with institutional investors. BGC will provide expertise in market infrastructure, liquidity, trading technology, and financial market data, while Fanatics contributes its consumer platform and sports-focused customer base.