Fanatics agreed to acquire BGC Group's designated contract market and derivatives clearing organization on July 27, 2026 [1].

This move allows the global sports platform to establish its own federally regulated prediction-market exchange within the U.S. By controlling the underlying infrastructure, Fanatics can scale its trading operations and reduce reliance on third-party providers.

Under the terms of the deal, Fanatics will acquire Water Street Labs and CX Clearinghouse [2]. These assets provide the necessary regulatory framework and technical capabilities to operate a legal derivatives market. The acquisition is designed to support both retail and institutional investors, creating a broader ecosystem for prediction-based trading [3].

The company intends to use this infrastructure to expand its prediction-market business [4]. By integrating a clearinghouse and exchange, Fanatics gains direct control over the execution and settlement of trades. This vertical integration is a significant step for a company that has previously focused on sports merchandise and betting interfaces.

BGC Group Inc. is the seller of these specific assets [2]. The deal marks a transition for the BGC entities as they move under the Fanatics umbrella to serve the growing demand for regulated prediction markets. The transaction was officially announced on July 27, 2026 [1].

“Fanatics will acquire Water Street Labs and CX Clearinghouse”

By acquiring a federally regulated exchange and clearinghouse, Fanatics is moving beyond being a service provider to becoming a primary market operator. This shift allows the company to capture more value from the transaction chain and provides the institutional legitimacy required to attract high-net-worth traders to its prediction markets.