AI subject tested: Claude Opus 4.7 (web search on)
Question (paraphrased): 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 response:
"the final rule did not adopt tiered or FCM-size-based thresholds — the percentage limits apply uniformly regardless of FCM size"
Regulator verbatim text:
"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."
Failure mode: inference_drift
Substrate document: p_03_REGULATION_17_CFR_1_25_b__3__ii____two_tier_asset_b_download.pdf
This finding documents a confirmed hallucination by Claude Opus 4.7 (web search on) on a probe of the regulation. The model's response was tested against the regulator's verbatim primary text and classified as inference_drift. Full per-finding context is available via the linked Citation ID.
Each finding has a stable Citation ID (RLB-F-… for aggregated case-study findings, RLB-H-… for raw per-model hallucinations) — like a DOI, the ID always resolves to the canonical finding even if URLs change.
RegLeg Specialist Panel (2026). "What are the updated concentration limits that apply to government money market funds and Treasury ETFs under the 2024 R — AI Labs." Citation ID: RLB-H-US-CFTC-FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024-Q001-Opus47. RegLegBrief AI Hallucination Research, published 2026-06-07. https://reglegbrief.com/regulators/j2/us/cftc/fcm-dco-customer-funds-investments-reg-1-25-2024/whitepaper/finding/US-CFTC-US-001-FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024-v1-001--opus-47-websearch/
RegLeg Specialist Panel. (2026). What are the updated concentration limits that apply to government money market funds and Treasury ETFs under the 2024 R [Hallucination finding RLB-H-US-CFTC-FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024-Q001-Opus47]. RegLegBrief AI Hallucination Research. https://reglegbrief.com/regulators/j2/us/cftc/fcm-dco-customer-funds-investments-reg-1-25-2024/whitepaper/finding/US-CFTC-US-001-FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024-v1-001--opus-47-websearch/
RegLeg Specialist Panel, What are the updated concentration limits that apply to government money market funds and Treasury ETFs under the 2024 R [RLB-H-US-CFTC-FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024-Q001-Opus47], RegLegBrief AI Hallucination Research (June 07, 2026), https://reglegbrief.com/regulators/j2/us/cftc/fcm-dco-customer-funds-investments-reg-1-25-2024/whitepaper/finding/US-CFTC-US-001-FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024-v1-001--opus-47-websearch/.
@misc{reglegbrief_RLB_H_US_CFTC_FCM_DCO_CUSTOMER_FUNDS_INVESTMENTS_REG_1_25_2024_Q001_Opus47,
author = {RegLeg Specialist Panel},
title = {What are the updated concentration limits that apply to government money market funds and Treasury ETFs under the 2024 R},
year = {2026},
publisher = {RegLegBrief AI Hallucination Research},
note = {Hallucination finding Citation ID: RLB-H-US-CFTC-FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024-Q001-Opus47},
url = {https://reglegbrief.com/regulators/j2/us/cftc/fcm-dco-customer-funds-investments-reg-1-25-2024/whitepaper/finding/US-CFTC-US-001-FCM-DCO-CUSTOMER-FUNDS-INVESTMENTS-REG-1-25-2024-v1-001--opus-47-websearch/}
}
Every finding on this page compares an AI subject's account of the rule against the regulator's verbatim text from the regulator's own portal. Both are linked. Each delta, its root causes, and impact analysis are documented and published with immutable Citation IDs.