Hedge Funds × Compliance — United States · updated 2026-06-11

Finding#3 . NPRM-stage CPI-U buying-power figures invented

RLB Citation ID: RLB-F-US-CFTC-CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024-Q011

What the RLB Specialist Panel found

Finding#3 . NPRM-stage CPI-U buying-power figures invented

Citation ID: RLB-H-US-CFTC-CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024-Q011-Sonnet46
AI's failure: AI invented February-2023 buying-power figures that the NPRM does not record
Risk for the Compliance team: Operational decision-support exposure on testimony, technical notes, and economist deliverables that quote AI-supplied CPI-U figures For compliance teams at hedge funds firms working on CFTC Regulation 4.7 matters, the AI's stated answer reads as a verbatim quotation that staff would paste into a register entry, memo, or client deliverable before verification against the source. The regulator's own text records a different position. The NPRM pre-print PDF records, using CPI-U data as of February 2023, that the $2,000,000 threshold in the Securities Portfolio Test has the same buying power as approximately $4,270,000, and the $200,000 threshold in the Initial Margin and Premiums Test has the same buying power as approximately $427,000. Sonnet 4.6 reported $4,070,000 and $407,000 for the same reference month. The 5 percent gap between the AI's figures and the regulator's stated figures cannot be reconciled to any CPI-U release; the answer is invented under the appearance of a precise quotation. For the compliance teams at hedge funds firms working this question into an internal compliance, legal, operations, or risk record, the AI's stated answer would embed an error into the working record that downstream reviewers treat as verified.
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References — raw findings (per AI model)

RLB-H-US-CFTC-CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024-Q011-Sonnet46 Claude Sonnet 4.6 (web search on)

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Cite this finding

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.

RLB Citation ID: RLB-F-US-CFTC-CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024-Q011

Plain text Download

RegLeg Specialist Panel (2026). "Finding#3 . NPRM-stage CPI-U buying-power figures invented — Hedge Funds × Compliance — United States." Citation ID: RLB-F-US-CFTC-CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024-Q011. RegLegBrief AI Hallucination Research, published 2026-06-11. https://reglegbrief.com/regulators/j3/us/cftc/cpo-cta-regulation-4-7-qep-thresholds-2024/sectors/hedge_funds/compliance/finding/US-CFTC-US-001-CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024-v1-011/

APA 7th edition Download

RegLeg Specialist Panel. (2026). Finding#3 . NPRM-stage CPI-U buying-power figures invented [Hallucination finding RLB-F-US-CFTC-CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024-Q011]. RegLegBrief AI Hallucination Research. https://reglegbrief.com/regulators/j3/us/cftc/cpo-cta-regulation-4-7-qep-thresholds-2024/sectors/hedge_funds/compliance/finding/US-CFTC-US-001-CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024-v1-011/

Bluebook / OSCOLA (US + UK legal) Download

RegLeg Specialist Panel, Finding#3 . NPRM-stage CPI-U buying-power figures invented [RLB-F-US-CFTC-CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024-Q011], RegLegBrief AI Hallucination Research (June 11, 2026), https://reglegbrief.com/regulators/j3/us/cftc/cpo-cta-regulation-4-7-qep-thresholds-2024/sectors/hedge_funds/compliance/finding/US-CFTC-US-001-CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024-v1-011/.

BibTeX Download

@misc{reglegbrief_RLB_F_US_CFTC_CPO_CTA_REGULATION_4_7_QEP_THRESHOLDS_2024_Q011,
  author    = {RegLeg Specialist Panel},
  title     = {Finding#3 . NPRM-stage CPI-U buying-power figures invented},
  year      = {2026},
  publisher = {RegLegBrief AI Hallucination Research},
  note      = {Hallucination finding Citation ID: RLB-F-US-CFTC-CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024-Q011},
  url       = {https://reglegbrief.com/regulators/j3/us/cftc/cpo-cta-regulation-4-7-qep-thresholds-2024/sectors/hedge_funds/compliance/finding/US-CFTC-US-001-CPO-CTA-REGULATION-4-7-QEP-THRESHOLDS-2024-v1-011/}
}

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