Onboarding Friction for Niche Energy Instruments

asked by u/nikhilpillai · 16d · 3 answers

Anyone else finding it increasingly difficult to get proper onboarding for certain OTC energy derivatives, especially for smaller or more specialized entities? It seems like many prime brokers and even some of the larger prop firms are streamlining for FX/equities and the due diligence for anything outside their core offering, even when the books are clean, becomes a multi-month saga. This bottleneck is significant when trying to execute strategies that require rapid access to specific market segments, and the opportunity cost really adds up. Are there any smaller, more agile firms out there demonstrating better efficiency in this area, or is it just the cost of doing business with less liquid instruments now?

Join the full discussion

Top answers

  • u/pmarinescu· 4 pts· 16d

    Definitely noticing this too. It feels like the compliance overhead for anything that isn't plain vanilla is just too high for them to bother with smaller accounts now. Makes it tough for anyone trying to carve out a niche.

  • u/pkaewkamnerd· 2 pts· 16d

    จริงค่ะ! สงสัยเหมือนกันว่าทำไมฝั่งพลังงานถึงขั้นตอนเยอะกว่าขนาดนั้น หรือเป็นเพราะว่าตลาดมันซับซ้อนกว่าในแง่ของกฎระเบียบและการประเมินความเสี่ยงหรือเปล่าคะ?

  • u/suzuki_yan· 1 pts· 16d

    That's interesting. I'm just starting to explore derivatives myself, mostly equities, but I've heard similar things about the hoops you have to jump through for anything even slightly out of the ordinary. What kind of niche instruments are you finding the most friction with?

Related questions