Strategic Acquisition and Regulatory Infrastructure
Global sports platform Fanatics has entered into an agreement to acquire Water Street Labs, LLC and CX Clearinghouse, L.P. from BGC Group Inc. Announced on July 27, 2026, in New York, the transaction includes Water Street Labs, a Commodity Futures Trading Commission (CFTC) registered Designated Contract Market (DCM), and CX Clearinghouse, a CFTC registered Derivatives Clearing Organization (DCO).
By securing its own exchange and clearinghouse infrastructure, Fanatics Markets will be empowered to directly list and clear prediction markets for its customer base. The move bridges retail-focused prediction markets with BGC’s institutional marketplace expertise, trading technology, and liquidity. Furthermore, the partners will collaborate on new market data products, combining prediction market sentiment with traditional financial market analytics.
Executive Perspectives and Platform Reach
Matt King, CEO of Fanatics Betting and Gaming, stated:
“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. Their expertise in building and operating regulated exchanges, clearinghouses, trading technology, and institutional market infrastructure makes them an ideal partner.”
John Abularrage, BGC Co-CEO, added:
“This represents an important strategic step for BGC to expand our data and analytics capabilities while combining our institutional expertise with Fanatics’ consumer reach. No one knows the sports fan better than Fanatics, and we believe the acquisition of BGC’s DCM and DCO will supercharge Fanatics Markets.”
Launched in December 2025, Fanatics Markets is available across 23 states and four U.S. territories, offering customer features such as FanCash, Fanatics ONE rewards, Combos, FanViz, and integrated risk management tools.
