Fanatics, a global sports platform, and BGC Group Inc, (Nasdaq: BGC) (“BGC”), a leading global brokerage and financial technology company servicing financial markets, announced today that they have entered into an agreement for Fanatics to acquire Water Street Labs, LLC and CX Clearinghouse L.P. from BGC.  The acquisition of Water Street Labs, a Commodity Futures Trading Commission (CFTC) registered Designated Contract Market (DCM), and CX Clearinghouse, L.P., a CFTC registered Derivatives Clearing Organization (DCO), will enable Fanatics to offer its own federally regulated prediction market exchange and expand its prediction market offerings on Fanatics Markets.

By owning its own exchange and clearinghouse, Fanatics Markets will combine its proven expertise in building and scaling consumer-facing platforms with the freedom to directly list and clear prediction markets across an expanding opportunity set to Fanatics’ highly engaged customer base. By harnessing BGC’s expertise in institutional market infrastructure, liquidity, and trading, Fanatics Markets will connect retail-focused prediction markets with the institutional marketplace for the first time.

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