This is the consolidated view of findings. Click the Citation IDs or 'see details →' on any item for the full details for each finding.
A client alert or regulatory memo that correctly notes the January 2026 correction occurred but omits the identity of the restored appendix — Appendix A to Subpart H, titled 'Guidance on the Application of §§23.434 and 23.440 for Swap Dealers That Make Recommendations to Counterparties or Special Entities' — fails to give clients what they need to verify that their own compliance documentation references the right guidance. For swap dealer clients with active special entity relationships, the gap between 'a correction was issued' and 'the guidance governing your recommendation obligations was momentarily removed and then restored' is material.
If the omission travels into a client's compliance review and is later identified by CFTC examination staff, the law firm's advice is in the audit record.
AI tools tested on Staff Letter 25-49 described its scope as covering ITBC swaps on US SEFs and DCMs — directly contradicting the letter, which specifically addresses swaps initiated on Eligible UK Trading Venues (UK MTFs and OTFs authorized by the FCA). A law firm advising a US swap dealer client on cross-border execution arrangements that relies on this characterization would produce advice that is structurally wrong at its geographic premise.
If the client structures its documentation or pre-trade processes for UK venue execution based on that advice, the mismatch between the AI's answer and the letter's actual scope may not surface until a CFTC or FCA review — at which point the law firm is the author of the underlying analysis.
The December 2025 final rule eliminated the PTMMM provision in its entirety — but that provision had always applied only to uncleared swaps, FX forwards, and FX swaps. AI tools tested on this question extended 'eliminated in its entirety' to mean PTMMM no longer applies to cleared credit default swaps and other product types that were never within the provision's scope.
A memo stating that cleared swaps are now exempt from PTMMM — rather than accurately noting they were always outside scope — misconstrues the regulatory baseline and could cause a client to reach incorrect conclusions about what its documentation obligations were both before and after the rule change.