BGC Group Inc. agreed to sell subsidiaries Water Street Labs, LLC and CX Clearinghouse L.P. to Fanatics. The transaction provides Fanatics with a CFTC-registered exchange and clearinghouse. These licenses enable the sports platform to launch a federally regulated prediction market.
BGC and Fanatics will also partner to develop new market data products. This collaboration combines BGC’s institutional infrastructure with Fanatics' consumer reach. The partnership aims to integrate prediction market sentiment with traditional financial data.
The deal allows BGC to expand its data and analytics capabilities. It specifically targets growth within the prediction markets asset class.