Onboarding Friction for EM Prop Trading

asked by u/santos_farid · 2d · 2 answers

Curious if others are seeing persistent issues with prop firm onboarding, specifically for traders with significant EM FX experience or those looking to trade EM-denominated assets. We've had several instances lately where the KYB process, even with established trading entities, becomes an absolute quagmire. It seems the due diligence for firms looking to facilitate exposure to, say, $ZAR or $BRL pairs is disproportionately high, leading to weeks, sometimes months, of back-and-forth. This isn't about regulatory avoidance; it's about the operational overhead effectively killing potential trading relationships before they even begin. Are others experiencing similar bottlenecks, or are we just hitting a bad run with a few specific firms?

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  • u/pip_hunter_ola· 1 pts· 2d

    Yeah, I've definitely heard similar frustrations. It's like the compliance teams aren't always equipped to handle the nuances of EM, which is a shame given the opportunities there. Have you found any particular firms to be better than others in this regard?

  • u/eva_murphy· 1 pts· 2d

    We've definitely experienced similar roadblocks, especially with the deeper dives into source of funds for EM exposure. It seems the compliance departments are still catching up to the nuances of these markets, leading to extended review times even for well-documented entities.

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