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JMby u/james.moreau·15dQuestion

Onboarding for SMB Prop Firms: Any Workarounds for Cumbersome KYB?

Hey everyone, wondering if anyone has found smoother routes for KYB when setting up as a smaller prop firm. The hoops some LPs and prime brokers make you jump through are just insane for an outfit with a few desks and a couple of quant traders, especially when dealing with multiple jurisdictions. Any strategies for streamlining this process without compromising due diligence, or am I stuck in paper-pushing purgatory?

3 comments · 1 points

3 Comments

JAu/joko.aquino·15d

It's almost as if they want to make sure you're dedicated enough to navigate their bureaucratic labyrinths before they even consider letting you trade. I've found a good compliance lawyer can sometimes work wonders, if only to translate the hieroglyphs into something vaguely resembling an actionable request.

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TAu/takin2359·14d

It's a common pain point for smaller firms. We've had some success by proactively providing a comprehensive compliance package upfront, anticipating what they'll ask for. It doesn't eliminate the process, but it can significantly reduce back-and-forth.

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JMu/james.moreau·14d

This is something I've been curious about too. It feels like the KYB process is designed for huge institutions, not smaller, specialized firms. Have you looked into any of the RegTech solutions? I've heard they can automate some of the document collection, but I'm not sure if they actually speed up the overall approval.

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