Principles for Financial Market Infrastructures (PFMI)
Bank for International Settlements — Committee on Payments and Market Infrastructures (CPMI) (BIS-CPMI)
Research Complete
Hallucination findings published
AI Labs white paper available
Rich-narrative analysis of how AI models fail on this regulation, written for
AI model providers. Includes per-finding context and remediation framing.
RegLeg tested two frontier AI models against the Principles for Financial Market Infrastructures (PFMI), the global standard for payment systems, central counterparties, and securities settlement systems published jointly by CPMI and IOSCO. The models tested were Claude Opus...
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AI Failures: Hallucination and Blind Spots Shape
(2 Response Hallucination + 3 Citation Hallucination + 10 Blind Spots = 15 Failure Mode Findings)
Citation Hallucination Modes (3 failures)
Fabricated
0
Pretextual
1
Contradictory
2
AI Blind Spots (10 failures)
Web Retrieval
10
Training Knowledge
0
Hallucination findings
2 findings across
2 AI Models.
Each finding pairs an AI answer against the authenticated regulator-text excerpt that contradicts it.
What does PFMI Annex F say about oversight of critical service providers, and what is the relationship between the 2014 CPMI-IOSCO assessment methodology document and Annex F?
Claude Opus 4.7 (web search on) answered
d123 (December 2014) is 'Cyber resilience in financial market infrastructures' — preliminary CPMI work on cyber, distinct from Annex F (the canonical cyber guidance is d146, June 2016, not d123).
Regulator text says
[Not accessible — PDF binary]
What specific governance requirements does PFMI Principle 2 impose on FMI boards, and is the establishment of a risk committee a conditional recommendation or a mandatory requirement?
Claude Sonnet 4.6 (web search on) answered
KC 2.5 states that 'the board should consider establishing dedicated audit, risk, and remuneration committees' — this is conditional ('should consider'), not a hard mandate.
Regulator text says
[Not accessible — PDF binary. P2 governance requirements for FMI boards — recall only]
AI Blind Spots
10 AI Blind Spots on this regulation
Questions where AI models refused to answer — but the answer is publicly available and can be found with a simple Google search.
What are the specific contents, thresholds, and cross-references in the CPMI-IOSCO consultative report on CCP resilience and recovery (August 2016)?
What Claude Opus 4.7 (web search on) said
I do not have reliable verbatim recall of the body text of d149. I cannot, however, quote verbatim text, specific paragraph numbers, exact thresholds, or named entities from inside the d149 PDF without fabricating, so I will not.
What the regulator's publication actually contains
Document not accessible to Panel (L3 zone — neither WebFetch nor Wayback rescue succeeded). User-product blind spot: AI could not deliver content the user requested.
Authoritative source (Panel verification)
What specific findings does the CPMI-IOSCO Level 3 assessment on general business risks (November 2025) contain about FMI compliance with the six-month liquid net assets standard?
What Claude Opus 4.7 (web search on) said
I do not have verbatim access to the d228 PDF. External sources confirm: d228 is 'Implementation monitoring of the PFMI: Level 3 assessment on general business risks,' published November 2025…I therefore decline to assert the quoted snippet as verbatim from d228.
What the regulator's publication actually contains
Document not accessible to Panel (L3 zone — neither WebFetch nor Wayback rescue succeeded). User-product blind spot: AI could not deliver verbatim content from d228.
Authoritative source (Panel verification)
What specific text does the BIS press release of 13 July 2022 on the CPMI-IOSCO stablecoin guidance publication contain?
What Claude Opus 4.7 (web search on) said
I do not have verbatim recall of the p220713 press release text. From external metadata I can confirm: p220713 is the BIS press release dated 13 July 2022…I do not provide verbatim quotation since I cannot guarantee accuracy without re-reading the page directly.
What the regulator's publication actually contains
Document not accessible to Panel (L3 zone — Panel did not retrieve verbatim press release text). User-product blind spot: AI could not deliver verbatim content from the press release.
Authoritative source (Panel verification)
What specific verbatim text, thresholds, or cross-references appear in the IOSCO co-published version of the Principles for Financial Market Infrastructures?
What Claude Opus 4.7 (web search on) said
I do not have verbatim access to the IOSCOPD377-PFMI PDF binary. The document is IOSCO's co-published version of the CPSS-IOSCO Principles for Financial Market Infrastructures (April 2012)…I will not produce verbatim paragraphs from the IOSCO PDF without risking fabrication.
What the regulator's publication actually contains
Document not accessible to Panel (L3 zone — binary PDF; WebFetch did not retrieve verbatim text). User-product blind spot: AI could not deliver verbatim content from the IOSCO PFMI publication.
Authoritative source (Panel verification)
What specific verbatim text, thresholds, or cross-references appear in the IOSCO version of the PFMI disclosure framework and assessment methodology?
What Claude Opus 4.7 (web search on) said
I do not have verbatim access to IOSCOPD396. By external metadata it is the IOSCO-numbered companion to BIS d106…I will not produce verbatim text or paragraph references from the PDF as I cannot confirm them without re-reading the binary directly.
What the regulator's publication actually contains
Document not accessible to Panel (L3 zone — binary PDF; WebFetch did not retrieve verbatim text). User-product blind spot: AI could not deliver verbatim content from the IOSCO PFMI disclosure framework publication.
Authoritative source (Panel verification)
What specific text, thresholds, or paragraph cross-references appear in the August 2016 CPMI-IOSCO consultative report on CCP resilience and recovery — the document that preceded the final 2017 guidance?
What Claude Sonnet 4.6 (web search on) said
I do not have verbatim access to d149. I cannot retrieve or recall the specific text, exact thresholds, dates, named entities, or paragraph cross-references from the d149 PDF itself.
What the regulator's publication actually contains
Document not accessible to Panel (L3 zone — neither WebFetch nor Wayback rescue succeeded). User-product blind spot: AI could not deliver verbatim content from the August 2016 CPMI-IOSCO consultative report on CCP resilience and recovery (d149) that the user requested.
Authoritative source (Panel verification)
What specific findings, including verbatim text, does the CPMI-IOSCO Level 3 monitoring assessment on general business risks contain regarding FMI compliance with the 6-month LNAFE standard?
What Claude Sonnet 4.6 (web search on) said
I do not have verbatim access to d228. I cannot retrieve or reproduce specific verbatim text, exact paragraph references, or precise quotations from the d228 PDF itself.
What the regulator's publication actually contains
Document not accessible to Panel (L3 zone — neither WebFetch nor Wayback rescue succeeded). User-product blind spot: AI could not deliver verbatim content from the November 2025 CPMI-IOSCO Level 3 assessment on general business risks (d228) that the user requested.
Authoritative source (Panel verification)
What specific content, key announcements, and named entities does the July 2022 BIS press release on the CPMI-IOSCO guidance for stablecoin arrangements contain?
What Claude Sonnet 4.6 (web search on) said
I do not have verbatim access to the specific BIS press release page at https://www.bis.org/press/p220713.htm… I cannot provide verbatim text, exact quotes, named entities referenced, or specific paragraph cross-references from the press release page itself.
What the regulator's publication actually contains
Document not accessible to Panel (L3 zone — neither WebFetch nor Wayback rescue succeeded). User-product blind spot: AI could not deliver verbatim content from the July 2022 BIS press release (p220713) announcing the stablecoin arrangements guidance that the user requested.
Authoritative source (Panel verification)
What specific text, thresholds, or cross-references are contained in the IOSCO co-published version of the Principles for Financial Market Infrastructures?
What Claude Sonnet 4.6 (web search on) said
I do not have verbatim access to the PDF at https://www.iosco.org/library/pubdocs/pdf/IOSCOPD377-PFMI.pdf… I cannot provide specific verbatim text, exact thresholds, dates, named entities, or paragraph cross-references from IOSCOPD377-PFMI itself.
What the regulator's publication actually contains
Document not accessible to Panel (L3 zone — neither WebFetch nor Wayback rescue succeeded). User-product blind spot: AI could not deliver verbatim content from the IOSCO co-published PFMI (IOSCOPD377) that the user requested.
Authoritative source (Panel verification)
What specific text, assessment ratings terminology, or paragraph cross-references appear in the IOSCO co-published version of the CPMI-IOSCO disclosure framework and assessment methodology for financial market infrastructures?
What Claude Sonnet 4.6 (web search on) said
I do not have verbatim access to the PDF at https://www.iosco.org/library/pubdocs/pdf/IOSCOPD396.pdf… I cannot provide specific verbatim text, exact thresholds, paragraph numbers, or precise named entities from the IOSCOPD396 PDF itself.
What the regulator's publication actually contains
Document not accessible to Panel (L3 zone — neither WebFetch nor Wayback rescue succeeded). User-product blind spot: AI could not deliver verbatim content from the IOSCO co-published disclosure framework and assessment methodology (IOSCOPD396) that the user requested.
Authoritative source (Panel verification)
Affected audiences
These findings affect the following audiences. Click through for the case studies that aggregate findings across all regulations in this jurisdiction.
Practitioners
Sectors × Departments