Fanatics Takes Control with Exchange Acquisition
Fanatics, a leading provider of prediction markets, has announced a significant move to bring its infrastructure in-house. The company has agreed to acquire Water Street Labs, a federally regulated exchange and clearinghouse from BGC Group, giving Fanatics direct control over listing and clearing event contracts.
The deal includes CX Clearinghouse, a registered Derivatives Clearing Organization (DCO), and will allow Fanatics to list and clear contracts directly under its own infrastructure. This move is expected to expand the range of prediction markets available on the platform while removing dependence on an external exchange operator.
Fanatics Markets has operated as an introducing broker and futures commission merchant since its launch in December 2025, relying on regulated infrastructure provided by Crypto.com Derivatives North America. With this acquisition, Fanatics will be able to take control of its own exchange and clearing operations.