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Practitioners — Accountants (CA/PA) · Last updated 11 Jun 2026 · Hallucination Register
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Finding#3: DWAM exclusion inverted: Treasury repos swapped in for actual carve-outs (Opus 4.7)

RLB Citation ID: RLB-F-US-CFTC-FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024-Q002
What the RLB Specialist Panel found

Finding#3: DWAM exclusion inverted: Treasury repos swapped in for actual carve-outs (Opus 4.7)

Impact for Accountants (CA/PA) in the United States advising on the Amendments to Regulation 1.25, Permissible Investments of Customer Funds by Futures Commission Merchants and Derivatives Clearing Organizations

For Accountants (CA/PA) working on FCM and DCO customer-funds investment policy work in the United States, the inverted DWAM carve-out misdirects portfolio testing toward an asset class the rule does not exclude (U.S. Treasury repos) while omitting the asset classes the rule does exclude (government money market funds, Treasury ETFs, and foreign sovereign debt). A accountants (ca/pa) who applies the model output to denominator construction or compliance testing would simultaneously over-include carved-out classes and under-include included ones.

The error surface is exactly where verification is least likely: the headline 24-month number is correct, so the carve-out clause passes a quick numeric check. Independent verification against 17 CFR 1.25(b)(3)(iv) is the only reliable safeguard.

References — raw findings (per AI model)
This finding also affects
← Previous finding Finding#2: Concentration limits: trigger elision plus fabricated tier (Sonnet 4.6) Next finding → Finding#4: DWAM no-standard answer on direct Treasuries (Sonnet 4.6)
Cite this finding

Each finding has a stable Citation ID (RLB-F-… for aggregated case-study findings, RLB-H-… for raw per-model hallucinations) — like a DOI, the ID always resolves to the canonical finding even if URLs change.

RLB Citation ID: RLB-F-US-CFTC-FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024-Q002
Plain text Download 
RegLeg Specialist Panel (2026). "Finding#3: DWAM exclusion inverted: Treasury repos swapped in for actual carve-outs (Opus 4.7) — Practitioners — Accountants (CA/PA)." Citation ID: RLB-F-US-CFTC-FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024-Q002. RegLegBrief AI Hallucination Research, published 2026-06-11. https://reglegbrief.com/regulators/j3/US/CFTC/FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024/practitioners/accountants-ca-pa/finding/US-CFTC-US-001-FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024-v1-002/
APA 7th edition Download 
RegLeg Specialist Panel. (2026). Finding#3: DWAM exclusion inverted: Treasury repos swapped in for actual carve-outs (Opus 4.7) [Hallucination finding RLB-F-US-CFTC-FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024-Q002]. RegLegBrief AI Hallucination Research. https://reglegbrief.com/regulators/j3/US/CFTC/FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024/practitioners/accountants-ca-pa/finding/US-CFTC-US-001-FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024-v1-002/
Bluebook / OSCOLA (US + UK legal) Download 
RegLeg Specialist Panel, Finding#3: DWAM exclusion inverted: Treasury repos swapped in for actual carve-outs (Opus 4.7) [RLB-F-US-CFTC-FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024-Q002], RegLegBrief AI Hallucination Research (June 11, 2026), https://reglegbrief.com/regulators/j3/US/CFTC/FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024/practitioners/accountants-ca-pa/finding/US-CFTC-US-001-FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024-v1-002/.
BibTeX Download 
@misc{reglegbrief_RLB_F_US_CFTC_FCM_DCO_CUSTOMER_FUNDS_INVESTMENTS_REG_1_25_2024_Q002,
  author    = {RegLeg Specialist Panel},
  title     = {Finding#3: DWAM exclusion inverted: Treasury repos swapped in for actual carve-outs (Opus 4.7)},
  year      = {2026},
  publisher = {RegLegBrief AI Hallucination Research},
  note      = {Hallucination finding Citation ID: RLB-F-US-CFTC-FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024-Q002},
  url       = {https://reglegbrief.com/regulators/j3/US/CFTC/FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024/practitioners/accountants-ca-pa/finding/US-CFTC-US-001-FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024-v1-002/}
}
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