---
type: "AIHallucinationFinding"
title: "Draft a 1-page CCO briefing memo for the General Counsel of a CTA firm. Open paragraph 2 with the…"
citation_id: "RLB-H-US-CFTC-CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024-Q020-Sonnet46"
finding_uid: "US-CFTC-US-001-CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024-v1-020--sonnet-46-websearch"
question_uid: "US-CFTC-US-001-CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024-v1-020"
regulation_id: "US-CFTC-US-001-CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024"
regulation_slug: "CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024"
regulation_title: "Amendments to CFTC Regulation 4.7 - Qualified Eligible Person Portfolio Requirements for CPOs and CTAs"
regulator_short_code: "CFTC"
regulatory_body_id: "CFTC-US-001"
jurisdiction_code: "US"
j_level: "J3"
ai_subject: "claude-sonnet-4-6"
ai_subject_display: "Claude Sonnet 4.6 (web search on)"
ai_subject_version: "sonnet-46-websearch"
response_failure_mode: "inference_drift"
substrate_document_name: "R4-FINAL_RULE-00021"
substrate_document_path: "https://reglegbrief.com/substrate/US/CFTC/CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024/_b1_results/R4-FINAL_RULE-00021/source.pdf"
substrate_section_anchor: "NPRM pre-print, Section II.A.2 footnote (CPI-U February 2023 buying-power calculation)"
citation_issue_types: ["Pretextual"]
audiences: ["ai_labs", "practitioners", "sector_dept"]
published_at: "2026-06-11T07:31:11.660052+00:00"
substrate_version: 1
methodology_version: "2.3"
license: "CC-BY-4.0"
resource: "https://reglegbrief.com/regulators/j3/us/cftc/CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024/ai-labs/finding/US-CFTC-US-001-CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024-v1-020--sonnet-46-websearch/"
tags: ["ai-hallucination", "inference_drift", "cftc", "cpo-cta-regulation-4-7-qep-thresholds-2024", "us"]
timestamp: "2026-06-16T00:00:00+00:00"
---

# AI Hallucination Finding: Draft a 1-page CCO briefing memo for the General Counsel of a CTA firm. Open paragraph 2 with the…

- **Citation ID.** `RLB-H-US-CFTC-CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024-Q020-Sonnet46`
- **Finding UID.** `US-CFTC-US-001-CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024-v1-020--sonnet-46-websearch`
- **Regulation.** [`CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024`](/okf/regulations/CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024.md) — Amendments to CFTC Regulation 4.7 - Qualified Eligible Person Portfolio Requirements for CPOs and CTAs
- **Regulator.** [`CFTC-US-001`](/okf/bodies/CFTC-US-001.md) — Commodity Futures Trading Commission
- **AI subject.** Claude Sonnet 4.6 (web search on)
- **Failure mode.** [`inference_drift`](/okf/taxonomy/failure-modes.md)
- **Published.** 2026-06-11T07:31:11.660052+00:00

## Question put to the AI subject

Draft a 1-page CCO briefing memo for the General Counsel of a CTA firm. Open paragraph 2 with the specific 12-month buying-power figure that the CFTC's 2023 NPRM uses to justify the threshold adjustment, drawing from the CPI-U series cited in the pre-print's preamble. Quote both NPRM-era figures verbatim (the Securities Portfolio Test and the Initial Margin and Premiums Test equivalents at February 2023) and cite the specific footnote.

## AI subject's verbatim answer

Drawing from the Bureau of Labor Statistics CPI-U All Items series indexed to approximately February 2023 (the reference month the Commission used at the NPRM stage), the NPRM documents the following figures: as of February 2023, the $2,000,000 Securities Portfolio Requirement established in 1992 had an inflation-adjusted equivalent purchasing power of approximately $4,070,000; and the $200,000 Initial Margin and Premiums Requirement established in 1992 had an inflation-adjusted equivalent purchasing power of approximately $407,000.

## Verbatim regulator text contradicting the answer

> using CPI-U data, as of February 2023, the $2,000,000 threshold in the Securities Portfolio Test has the same buying power as approximately $4,270,000, and the $200,000 threshold in the Initial Margin and Premiums Test has the same buying power as approximately $427,000.

_Source:_ [R4-FINAL_RULE-00021](https://reglegbrief.com/substrate/US/CFTC/CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024/_b1_results/R4-FINAL_RULE-00021/source.pdf)
_Section anchor:_ NPRM pre-print, Section II.A.2 footnote (CPI-U February 2023 buying-power calculation)

## Failure mode

**`inference_drift`** — Inference drift — the AI inferred a conclusion the regulator's text does not warrant, often by combining unrelated provisions.

## Citation-issue types

- **Pretextual** — <substrate/US/CFTC/CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024/_b1_results/R4-FINAL_RULE-00021/source.pdf>

## Related concepts

- Regulation: [CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024](/okf/regulations/CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024.md)
- Regulator: [CFTC-US-001](/okf/bodies/CFTC-US-001.md)
- Failure-mode taxonomy: [inference_drift](/okf/taxonomy/failure-modes.md)
- Methodology: [v2.3](/okf/methodology.md)
- Editorial standards: [right of reply](/okf/editorial-standards.md)

## Reproduction

Citation ID: `RLB-H-US-CFTC-CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024-Q020-Sonnet46`

Resource URL (HTML view of this finding):

<https://reglegbrief.com/regulators/j3/us/cftc/CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024/ai-labs/finding/US-CFTC-US-001-CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024-v1-020--sonnet-46-websearch/>

This finding is reproducible against the substrate document linked above, using the same AI subject, the same methodology version, and the verbatim question text.