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AI Labs · updated 2026-06-03 · methodology v2.1

Finding on 'Q003 Probe' for Claude Opus 4.7 with web search ON

RLB Citation ID: RLB-H-US-CFTC-SWAP-DEALER-BUSINESS-CONDUCT-DOCUMENTATION-2025-Q003-Opus47
What the RLB Specialist Panel found

Finding on 'Q003 Probe' for Claude Opus 4.7 with web search ON

  • Question (paraphrased to protect IP): What trading venues does CFTC Staff Letter 25-49 specifically address for the treatment of intended-to-be-cleared swaps, and which prior no-action letter does it supersede in its entirety?
  • AI's response: "(i) swaps that the parties intend to clear contemporaneously with execution ('ITBC swaps') where the swap dealer does not know the identity of its counterparty pre-execution, and (ii) ITBC swaps initiated on a swap execution facility or designated contract market."
  • Regulator's text: CFTC Staff Letter 25-49 provides market participants certainty with respect to the treatment of ITBC Swaps (Intended-to-be-Cleared Swaps) initiated on an Eligible UK Trading Venue.
  • Why the AI went wrong: The model replaced the letter's actual geographic and venue-specific scope — Eligible UK Trading Venues — with a generic ITBC framing covering any swap execution facility or designated contract market. This substitution transforms a jurisdiction-specific no-action letter into a general statement about ITBC swap treatment, which is both factually wrong and operationally consequential: a swap dealer relying on this output to assess coverage for a UK venue transaction would not be covered by the letter the model described. The cited source is a law-firm commentary that did not contain the precise venue restriction the letter establishes.
  • Cited source(s):
  • https://www.lexology.com/library/detail.aspx?g=a14716ee-5a28-4e31-8adc-46d20e... — Pretextual
Impact for this audience

This failure points to a scope-restriction suppression pattern in how the model handles CFTC staff letters: the training corpus appears to weight the interpretive general statement (ITBC swap treatment) more heavily than the bounding clause (Eligible UK Trading Venues only), so the model reproduces the general statement as the letter's full coverage. The retrieval layer's top result — a law-firm summary — did not contain the precise venue restriction, and the model did not flag the gap between its training-derived framing and the retrieved source.

References — raw findings (per AI model)
This finding also affects
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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-H-US-CFTC-SWAP-DEALER-BUSINESS-CONDUCT-DOCUMENTATION-2025-Q003-Opus47
Plain text Download 
RegLeg Specialist Panel (2026). "Finding on 'Q003 Probe' for Claude Opus 4.7 with web search ON — AI Labs." Citation ID: RLB-H-US-CFTC-SWAP-DEALER-BUSINESS-CONDUCT-DOCUMENTATION-2025-Q003-Opus47. RegLegBrief AI Hallucination Research, published 2026-06-03. https://reglegbrief.com/regulators/j3/us/cftc/swap-dealer-business-conduct-documentation-2025/whitepaper/finding/US-CFTC-US-001-SWAP-DEALER-BUSINESS-CONDUCT-DOCUMENTATION-2025-v1-003--opus-47-websearch/
APA 7th edition Download 
RegLeg Specialist Panel. (2026). Finding on 'Q003 Probe' for Claude Opus 4.7 with web search ON [Hallucination finding RLB-H-US-CFTC-SWAP-DEALER-BUSINESS-CONDUCT-DOCUMENTATION-2025-Q003-Opus47]. RegLegBrief AI Hallucination Research. https://reglegbrief.com/regulators/j3/us/cftc/swap-dealer-business-conduct-documentation-2025/whitepaper/finding/US-CFTC-US-001-SWAP-DEALER-BUSINESS-CONDUCT-DOCUMENTATION-2025-v1-003--opus-47-websearch/
Bluebook / OSCOLA (US + UK legal) Download 
RegLeg Specialist Panel, Finding on 'Q003 Probe' for Claude Opus 4.7 with web search ON [RLB-H-US-CFTC-SWAP-DEALER-BUSINESS-CONDUCT-DOCUMENTATION-2025-Q003-Opus47], RegLegBrief AI Hallucination Research (June 03, 2026), https://reglegbrief.com/regulators/j3/us/cftc/swap-dealer-business-conduct-documentation-2025/whitepaper/finding/US-CFTC-US-001-SWAP-DEALER-BUSINESS-CONDUCT-DOCUMENTATION-2025-v1-003--opus-47-websearch/.
BibTeX Download 
@misc{reglegbrief_RLB_H_US_CFTC_SWAP_DEALER_BUSINESS_CONDUCT_DOCUMENTATION_2025_Q003_Opus47,
  author    = {RegLeg Specialist Panel},
  title     = {Finding on 'Q003 Probe' for Claude Opus 4.7 with web search ON},
  year      = {2026},
  publisher = {RegLegBrief AI Hallucination Research},
  note      = {Hallucination finding Citation ID: RLB-H-US-CFTC-SWAP-DEALER-BUSINESS-CONDUCT-DOCUMENTATION-2025-Q003-Opus47},
  url       = {https://reglegbrief.com/regulators/j3/us/cftc/swap-dealer-business-conduct-documentation-2025/whitepaper/finding/US-CFTC-US-001-SWAP-DEALER-BUSINESS-CONDUCT-DOCUMENTATION-2025-v1-003--opus-47-websearch/}
}
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