--- type: "AIHallucinationFinding" title: "Which categories of swap instruments were actually subject to the pre-trade mid-market mark…" citation_id: "RLB-H-US-CFTC-SWAP-DEALER-BUSINESS-CONDUCT-DOCUMENTATION-2025-Q004-Opus47" finding_uid: "US-CFTC-US-001-SWAP-DEALER-BUSINESS-CONDUCT-DOCUMENTATION-2025-v1-004--opus-47-websearch" question_uid: "US-CFTC-US-001-SWAP-DEALER-BUSINESS-CONDUCT-DOCUMENTATION-2025-v1-004" regulation_id: "US-CFTC-US-001-SWAP-DEALER-BUSINESS-CONDUCT-DOCUMENTATION-2025" regulation_slug: "SWAP-DEALER-BUSINESS-CONDUCT-DOCUMENTATION-2025" regulation_title: "Revisions to Business Conduct and Swap Documentation Requirements for Swap Dealers and Major Swap Participants" 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: "cftc-final-rule-2025-23953-fr-90fr61226.pdf" substrate_document_path: "https://reglegbrief.com/substrate/US/CFTC/SWAP-DEALER-BUSINESS-CONDUCT-DOCUMENTATION-2025/_raw_manual_substrate/cftc-final-rule-2025-23953-fr-90fr61226.pdf" substrate_section_anchor: "Federal Register Vol. 90 No. 246 at 61231 (PTMMM elimination scope) and 17 CFR § 23.431(c)" citation_issue_types: ["Contradictory"] audiences: ["ai_labs"] published_at: "2026-06-03T21:50:35.680035+00:00" substrate_version: 1 methodology_version: "2.3" license: "CC-BY-4.0" resource: "https://reglegbrief.com/regulators/j3/us/cftc/SWAP-DEALER-BUSINESS-CONDUCT-DOCUMENTATION-2025/ai-labs/finding/US-CFTC-US-001-SWAP-DEALER-BUSINESS-CONDUCT-DOCUMENTATION-2025-v1-004--opus-47-websearch/" tags: ["ai-hallucination", "inference_drift", "cftc", "swap-dealer-business-conduct-documentation-2025", "us"] timestamp: "2026-06-16T00:00:00+00:00" --- # AI Hallucination Finding: Which categories of swap instruments were actually subject to the pre-trade mid-market mark… - **Citation ID.** `RLB-H-US-CFTC-SWAP-DEALER-BUSINESS-CONDUCT-DOCUMENTATION-2025-Q004-Opus47` - **Finding UID.** `US-CFTC-US-001-SWAP-DEALER-BUSINESS-CONDUCT-DOCUMENTATION-2025-v1-004--opus-47-websearch` - **Regulation.** [`SWAP-DEALER-BUSINESS-CONDUCT-DOCUMENTATION-2025`](/okf/regulations/SWAP-DEALER-BUSINESS-CONDUCT-DOCUMENTATION-2025.md) — Revisions to Business Conduct and Swap Documentation Requirements for Swap Dealers and Major Swap Participants - **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.** 2026-06-03T21:50:35.680035+00:00 ## Question put to the AI subject Which categories of swap instruments were actually subject to the pre-trade mid-market mark disclosure requirement under §23.431(a)(3) prior to its elimination by the December 2025 CFTC final rule, and does 'eliminated in its entirety' mean the requirement was removed for all swap types? ## AI subject's verbatim answer PTMMM disclosure is no longer required for any swap subject to § 23.431, including:...Cleared credit default swaps (index and single-name)...The exemption is product-agnostic across the desk's covered swap book. ## Verbatim regulator text contradicting the answer > the Commission is eliminating the PTMMM Requirement in its entirety as proposed by deleting paragraphs (i) and (ii) of § 23.431(a)(3) and moving the price disclosure requirement currently in such paragraph (i) and the compensation disclosure requirement currently in such paragraph (ii) into paragraphs (2) and (3) of § 23.431(a), respectively. [Combined with 23.431(c) exceptions: "Paragraph (a) of this section shall not apply with respect to a transaction that is: (1) Initiated on a designated contract market; (2) Initiated with a counterparty whose identity is not known to the swap entity prior to execution on a swap execution facility..."] _Source:_ [cftc-final-rule-2025-23953-fr-90fr61226.pdf](https://reglegbrief.com/substrate/US/CFTC/SWAP-DEALER-BUSINESS-CONDUCT-DOCUMENTATION-2025/_raw_manual_substrate/cftc-final-rule-2025-23953-fr-90fr61226.pdf) _Section anchor:_ Federal Register Vol. 90 No. 246 at 61231 (PTMMM elimination scope) and 17 CFR § 23.431(c) ## 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** — - **Contradictory** — - **Contradictory** — - **Contradictory** — - **Contradictory** — - **Contradictory** — ## Related concepts - Regulation: [SWAP-DEALER-BUSINESS-CONDUCT-DOCUMENTATION-2025](/okf/regulations/SWAP-DEALER-BUSINESS-CONDUCT-DOCUMENTATION-2025.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-SWAP-DEALER-BUSINESS-CONDUCT-DOCUMENTATION-2025-Q004-Opus47` Resource URL (HTML view of this finding): This finding is reproducible against the substrate document linked above, using the same AI subject, the same methodology version, and the verbatim question text.