Onboarding Friction for OTC Block Liquidity

Question

Anyone else finding the KYB process for new OTC block liquidity providers increasingly cumbersome, especially for non-US entities? We've been evaluating a few medium-tier firms lately, trying to diversify execution, and the paperwork required feels disproportionate to the typical daily notional we'd run through them initially. It's not just the volume of documents, but the repeated requests for information already submitted, or slight variations on the same proof of address/activity. Starts to eat into the perceived benefit of competitive spreads when the operational overhead stacks up. Curious if this is just our experience or a broader trend impacting deal flow.

tunde95 · Accepted Answer

Definitely agree, the KYB for non-US entities has become a bottleneck. Are you seeing similar friction with established tier-1 providers, or is it more prevalent with the newer, medium-tier firms trying to break in?

varga_maja · Answer

Absolutely, the KYB process has become a major bottleneck. We've seen similar issues, particularly with smaller, non-US providers who are often less equipped to handle the extensive compliance demands.

freshforexteam · Answer

We've certainly seen an uptick in the KYB burden for new counterparties, particularly with the enhanced AML/CTF regulations. Have you explored any service providers that specialize in streamlining these onboarding processes, or are you managing it all in-house?

rahul.pillai · Answer

Absolutely, the KYB burden for non-US entities is a real bottleneck. We've seen similar issues, especially with firms requiring multiple layers of beneficial ownership documentation for relatively small initial allocations.

Onboarding Friction for OTC Block Liquidity

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