BLOOMBERG: Sports Apparel Company Fanatics Inks BGC Deal for Prediction Markets Expansion

Fanatics struck a deal to buy a federally regulated derivatives exchange and clearinghouse from BGC Group Inc., as the sports-apparel company and broker-dealer seek to partner on prediction markets for retail and institutional investors.

The deal gives Fanatics Markets, the prediction market app operated by the sports company, the ability to list and clear its own contracts in a rapidly growing sector of finance. For brokerage firm BGC, the partnership will give it a foothold in a new asset class. Terms of the transaction weren’t disclosed.