Fanatics Secures Its Own Prediction Market Infrastructure With Regulated Exchange Purchase
TL;DR:
- Fanatics agreed to acquire Water Street Labs and CX Clearinghouse, two CFTC-regulated entities owned by BGC Group.
- The transaction grants the company direct control over the listing and clearing of its event contracts.
- The Fanatics Markets platform, launched in December 2025, operates in 23 states and four U.S. territories as of July 2026.
At the start of the week, it was announced that U.S. company Fanatics agreed to acquire a regulated exchange and clearinghouse to strengthen prediction markets within its commercial ecosystem.
On Monday, Fanatics formalized the purchase of Water Street Labs and CX Clearinghouse, until now subsidiaries of the financial conglomerate BGC Group. Water Street Labs holds an active registration as a Designated Contract Market (DCM), while CX Clearinghouse operates as a Derivatives Clearing Organization (DCO). Both entities function under the direct supervision of the U.S. Commodity Futures Trading Commission (CFTC).
Financial details were not disclosed in the official corporate statement. With this operation, the company aims to internally manage the structuring and settlement of its instruments. According to market reports, the acquisition grants the firm operational sovereignty over its technological architecture in a segment seeing growing activity across sports, finance, and digital assets.
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