---
type: "AIHallucinationFinding"
title: "What are the updated concentration limits that apply to government money market funds and Treasury…"
citation_id: "RLB-H-US-CFTC-FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024-Q001-Opus47"
finding_uid: "US-CFTC-US-001-FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024-v1-001--opus-47-websearch"
question_uid: "US-CFTC-US-001-FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024-v1-001"
regulation_id: "US-CFTC-US-001-FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024"
regulation_slug: "FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024"
regulation_title: "Amendments to Regulation 1.25 — Permissible Investments of Customer Funds by Futures Commission Merchants and Derivatives Clearing Organizations"
regulator_short_code: "CFTC"
regulatory_body_id: "CFTC-US-001"
jurisdiction_code: "US"
j_level: "J3"
ai_subject: "claude-opus-4-7"
ai_subject_display: "Claude Opus 4.7 (web search on)"
ai_subject_version: "opus-47-websearch"
response_failure_mode: "inference_drift"
substrate_document_name: "p_03_REGULATION_17_CFR_1_25_b__3__ii____two_tier_asset_b_download.pdf"
substrate_document_path: "https://reglegbrief.com/substrate/US/CFTC/FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024/_raw_manual_substrate/p_03_REGULATION_17_CFR_1_25_b__3__ii____two_tier_asset_b_download.pdf"
substrate_section_anchor: "17 CFR 1.25(b)(3)(ii) — two-tier asset-based concentration limits for government MMFs and Treasury ETFs"
citation_issue_types: ["Contradictory"]
audiences: ["ai_labs"]
published_at: "2026-06-04T10:04:59.396361+00:00"
substrate_version: 1
methodology_version: "2.3"
license: "CC-BY-4.0"
resource: "https://reglegbrief.com/regulators/j3/us/cftc/FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024/ai-labs/finding/US-CFTC-US-001-FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024-v1-001--opus-47-websearch/"
tags: ["ai-hallucination", "inference_drift", "cftc", "fcm-dco-customer-funds-investments-reg-1-25-2024", "us"]
timestamp: "2026-06-16T00:00:00+00:00"
---

# AI Hallucination Finding: What are the updated concentration limits that apply to government money market funds and Treasury…

- **Citation ID.** `RLB-H-US-CFTC-FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024-Q001-Opus47`
- **Finding UID.** `US-CFTC-US-001-FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024-v1-001--opus-47-websearch`
- **Regulation.** [`FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024`](/okf/regulations/FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024.md) — Amendments to Regulation 1.25 — Permissible Investments of Customer Funds by Futures Commission Merchants and Derivatives Clearing Organizations
- **Regulator.** [`CFTC-US-001`](/okf/bodies/CFTC-US-001.md) — Commodity Futures Trading Commission
- **AI subject.** Claude Opus 4.7 (web search on)
- **Failure mode.** [`inference_drift`](/okf/taxonomy/failure-modes.md)
- **Published.** 2026-06-04T10:04:59.396361+00:00

## Question put to the AI subject

What are the updated concentration limits that apply to government money market funds and Treasury ETFs under the 2024 Regulation 1.25 amendments, including any tiered or size-based thresholds based on fund and management company asset sizes?

## AI subject's verbatim answer

the final rule did not adopt tiered or FCM-size-based thresholds — the percentage limits apply uniformly regardless of FCM size

## Verbatim regulator text contradicting the answer

> Investments in government money market funds or qualified ETFs whose assets are ≥$1B and whose management company manages ≥$25B: may not exceed 50% of total segregated assets.

_Source:_ [p_03_REGULATION_17_CFR_1_25_b__3__ii____two_tier_asset_b_download.pdf](https://reglegbrief.com/substrate/US/CFTC/FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024/_raw_manual_substrate/p_03_REGULATION_17_CFR_1_25_b__3__ii____two_tier_asset_b_download.pdf)
_Section anchor:_ 17 CFR 1.25(b)(3)(ii) — two-tier asset-based concentration limits for government MMFs and Treasury ETFs

## 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

- **Contradictory** — <https://www.cftc.gov/PressRoom/PressReleases/9024-24>
- **Contradictory** — <https://www.federalregister.gov/documents/2025/01/22/2024-30927/investment-of-customer-funds-by-futures-commission-merchants-and-derivatives-clearing-organizations>
- **Contradictory** — <https://www.cftc.gov/media/11516/Regulation_1_25_FactSheetandQA121724/download>
- **Contradictory** — <https://www.morganlewis.com/pubs/2025/01/cftc-adopts-amendments-to-permissible-customer-funds-investments-by-fcms-and-dcos>
- **Contradictory** — <https://katten.com/the-cftc-approves-a-final-rule-regarding-investment-of-customer-funds>

## Related concepts

- Regulation: [FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024](/okf/regulations/FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024.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-FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024-Q001-Opus47`

Resource URL (HTML view of this finding):

<https://reglegbrief.com/regulators/j3/us/cftc/FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024/ai-labs/finding/US-CFTC-US-001-FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024-v1-001--opus-47-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.