--- type: "AILabsWhitepaper" title: "Hallucination findings: Amendments to Regulation 1.25, Permissible Investments of Customer Funds by Futures Commission Merchants and Derivatives Clearing Organizations" slug: "FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024-general-v1" audience: "general" regulation_slug: "FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024" regulation_id: "1836" body_id: "CFTC-US-001" jurisdiction_code: "US" j_level: "J3" regulator_short_code: "CFTC" methodology_version: "2.0" substrate_version: 1 generated_at: "2026-06-07T07:59:01.012109+00:00" published_at: "2026-06-07T07:59:01.012109+00:00" license: "CC-BY-4.0" resource: "https://reglegbrief.com/regulators/j3/us/cftc/FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024/ai-labs/" timestamp: "2026-06-16T00:00:00+00:00" --- # Hallucination findings: Amendments to Regulation 1.25, Permissible Investments of Customer Funds by Futures Commission Merchants and Derivatives Clearing Organizations - **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) - **Audience.** general - **Methodology.** 2.0 - **Generated.** 2026-06-07T07:59:01.012109+00:00 ## Full whitepaper # Hallucination findings, Amendments to Regulation 1.25, Permissible Investments of Customer Funds by Futures Commission Merchants and Derivatives Clearing Organizations _Jurisdiction: US ; Body: CFTC-US-001 ; Regulation: FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024_ This page lists each instance in which a tested AI assistant produced an answer that the regulator's own published text contradicts. Each row links the assistant's claim, the contradicting regulator text, and the status of any source the assistant cited. **Citation status legend**: - _Fabricated_, the URL the assistant cited does not exist as a public document. - _Inaccessible_, the URL exists but its content is not available for public verification. - _Accessible-but-contradicts-claim_, the URL is reachable and its content does not support the assistant's claim. **Question text below is paraphrased to protect IP** in the underlying question bank. --- | # | Subject | Question (paraphrased) | Assistant claim | Regulator says | Cited source(s) | |---|---|---|---|---|---| | 1 | opus-47-websearch | What dollar-weighted average maturity limit applies to an FCM's overall portfolio of customer segregated fund investments under the 2024 Regulation 1.25 amendments, and which asset classes are excluded from that portfolio-level calculation? | with U.S. Treasuries held under repurchase agreements excluded from the calculation | The dollar-weighted average of the time-to-maturity of the portfolio may not exceed 24 months. This limit excludes government money market funds, Treasury ETFs, and foreign sovereign debt from the calculation. | Contradictory; Contradictory; Contradictory; Contradictory | | 2 | opus-47-websearch | What process did the CFTC use to approve the 2024 Regulation 1.25 amendments, and were any dissenting or concurring commissioner views recorded alongside the final rule? | The rule was approved at the December 3, 2024 open Commission meeting (Chairman Behnam presiding) and a voting copy was issued on December 6, 2024. | Rule approved via seriatim process on December 3 2024, no public open meeting, individual vote records not published in any accessible source reviewed. | Contradictory; Contradictory; Contradictory; Contradictory; Contradictory; Contradictory | | 3 | sonnet-46-websearch | What tiered or size-based concentration limits apply under the 2024 Regulation 1.25 amendments to government money market funds and qualified Treasury ETFs held in FCM customer segregated accounts? | Tier 1, Large Funds: If the individual fund has assets under management of $1 billion or more AND its management company manages $25 billion or more...the FCM may invest up to 50% of total assets held in segregation...Tier 2, Smaller Funds:...no more than 10%...Family-Level Cap:...may not exceed 2 |, | Contradictory; Contradictory; Contradictory; Contradictory; Contradictory; Contradictory | | 4 | sonnet-46-websearch | Does a portfolio maturity constraint apply to direct US Treasury securities held in an FCM's customer segregated account under Regulation 1.25, and if so, what is the dollar-weighted average maturity limit? | The 2024 amendments do not impose a new dollar-weighted average maturity (DWAM) standard or a maximum remaining-maturity cap specifically on direct U.S. Treasury obligations...No DWAM standard or individual-maturity cap found in the 2024 amendments applies to that category. | The dollar-weighted average of the time-to-maturity of the portfolio may not exceed 24 months. This limit excludes government money market funds, Treasury ETFs, and foreign sovereign debt from the calculation. | Contradictory; Contradictory; Contradictory; Contradictory; Contradictory | | 5 | sonnet-46-websearch | A board briefing preparer asked for a summary of the 2024 Regulation 1.25 customer fund investment amendments covering key changes adopted, the Commission's vote, individual commissioner views, and political context for assessing whether the rule is likely to be revisited under a new administration. | The precise final vote count (e.g., 3-2, 4-1, or unanimous) is not definitively established in publicly available secondary sources reviewed here; the CFTC press release (PR 9024-24) and official voting record would need to be consulted for the exact tally and individual commissioner statements on t | Rule approved via seriatim process on December 3 2024, no public open meeting, individual vote records not published in any accessible source reviewed. No commissioner statements specific to the final rule (as opposed to the NPRM) were found via search. | Contradictory; Contradictory; Contradictory; Contradictory; Contradictory; Contradictory | --- _Published: 2026-06-07T07:59:00.896758+00:00_ ## 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) - Methodology: [v2.3](/okf/methodology.md)