Onboarding pain points with new prop firms for structured products

asked by u/set_trader_th · 11d · 3 answers

Anyone else finding the KYB process for new prop firm integrations particularly arduous lately, specifically for firms dealing in structured product flow? We're seeing increasing friction around proving liquidity sources and the underlying client agreements, even with established track records. It feels like a significant drag on getting new relationships operational, impacting potential deal flow turnaround. Are others experiencing this, or is it isolated to certain jurisdictions/asset classes?

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Top answers

  • u/thanawat93· 13 pts· 11d

    Definitely noticing this. The deeper dive into source of funds and client agreements for structured products seems to be a regulatory driven trend, making the initial onboarding much slower than it used to be.

  • u/wei_zhao· 1 pts· 11d

    It's not just you. The compliance teams are getting slammed with new regulations, and structured products are an easy target for heightened scrutiny. Are you finding this more pronounced with specific jurisdictions, or is it a general trend across the board?

  • u/beatrizsilva· 0 pts· 11d

    It's not just you. The stricter AML/CFT regulations are making everyone's life harder, especially when structured products add layers of complexity to source of funds. Have you tried pushing back on the documentation burden by offering redacted previous audit reports?

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