Onboarding Friction for Mid-Sized Proprietary Trading Firms

asked by u/mwhite · 1mo · 2 answers

We're a prop firm with decent AUM and looking to expand our execution counterparties beyond the two we currently leverage. The issue isn't finding brokers; it's the sheer friction during KYB for what feels like every single one. Even with our compliance team providing all necessary documentation upfront, the process often drags on for weeks, sometimes months, with repetitive requests for information already submitted. It's a significant time sink for senior personnel. Has anyone found a workaround or a particular tier of broker/PSP that is genuinely more efficient for established, albeit not institutional, entities? Or is this just the new norm post-MiFID II/Dodd-Frank?

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Top answers

  • u/pablo.martin· 1 pts· 1mo

    Completely agree. It's frustratingly inefficient. Have you found any specific brokers to be better or worse in their KYB process?

  • u/salmamansour· 1 pts· 1mo

    Totally get this. We've experienced similar delays, especially when expanding into new markets. Do you find certain types of brokers (e.g., tier 1 vs. niche) are worse than others?

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