Been seeing more chatter around KYC/AML requirements tightening up for entities dealing in physical and derivative energy products. Curious if anyone's had to adjust their operational flows significantly to accommodate these changes, especially with cross-border transactions involving, say, crude oil futures like $WTI.
It's definitely affecting deal flow, particularly smaller players who don't have the compliance infrastructure. We've seen a noticeable slowdown in new cross-border counterparties coming online for derivatives.
Yeah, it's definitely a growing concern, especially with smaller players who might not have dedicated compliance teams. The operational overhead for cross-border deals is getting pretty intense, making some feel it's just not worth the hassle for certain markets.
Definitely. We've seen a noticeable increase in compliance checks and due diligence requests, particularly for new counterparties. The documentation burden has certainly increased for our cross-border deals.