Federal financial regulators issued a joint proposal that would subject payment stablecoin issuers to anti-money-laundering and sanctions-compliance standards under the Bank Secrecy Act and the GENIUS Act. The proposal would establish a supervision and enforcement framework for the AML and countering the financing of terrorism programs implemented by issuers supervised by the Office of the Comptroller of the Currency. A 60-day period for public comment on the proposal is underway.

Charles Schwab is preparing to offer Cboe binary options tied to the S&P 500, giving customers yes-or-no contracts that pay a fixed amount or nothing based on index outcomes. The move brings Schwab into prediction-style trading as mainstream brokerages respond to demand for event-based products, though the firm plans to focus on verifiable financial benchmarks rather than sports or entertainment.

Federal Reserve Vice Chair of Supervision Michelle Bowman delivered remarks at a private, invitation-only dinner held by Bank of America on Wednesday shortly after the Fed issued its latest interest-rate decision, sources said. The event took place within the Fed's communications "blackout" period, in which Fed officials are prohibited from making public comments about monetary policy or economic developments in the direct aftermath of a Federal Open Market Committee meeting. Bowman said, "I have consistently complied with all applicable FOMC and ethics rules and remain firmly committed to doing so."

Prediction markets have seen a surge in activity during the World Cup, with more than $5 billion traded on platforms such as Polymarket and Kalshi. The event has created millionaires and significant losses, exemplified by a nearly $9 million loss on a single bet. DraftKings has reported a 200% increase in customers during the tournament.

"Bust-out" fraud exploiting the typical 30-day gap before banks report new loans to credit bureaus has surged in recent years, and it could be behind as much as 10% of auto loan defaults, according to tech company Point Predictive and payroll processor iSolved. The loophole has allowed opportunities for individual borrowers to secure multiple auto loans within a short time frame. Fraudsters' use of AI to produce false documents and identities is making such schemes more challenging to detect.

Citadel has transformed its commodities arm from a peripheral trading desk into a central pillar of its operations. This expansion has been marked by aggressive acquisitions, the integration of cutting-edge data analytics, and a willingness to enter physical commodity markets traditionally dominated by specialized merchants. The business spans natural gas, power, weather derivatives, and oil products, with its systematic, quantitative approach fueling both significant profits in strong years and exposure to the sector's inherent volatility.

Experts and regulators at the International Derivatives Expo called on financial market participants to enhance cross-market surveillance to combat market abuse. Andrew Adams of RBC notes that existing systems are fragmented, making it difficult to track activities across instruments and venues. The UK Financial Conduct Authority's Robert Mangham says some firms have made progress but more effort is needed industrywide. Artificial intelligence could help, but human oversight remains crucial.

One of the biggest challenges of 24/7 trading is securing weekend staffing, said exchange and clearing officials at an industry event. "Getting people comfortable with working over the weekends is not an easy task by any means," says Kate Hughes, executive director for risk management at CME Group. "I don't have people running over saying, 'I'd love to work weekends,'" says Gemma Lloyd, chief operating officer for Europe, the Middle East and Africa at StoneX. "A day off in lieu of flexibility really isn't going to cut it."