Onboarding Friction for OTC FX Deals
Curious if others are still seeing significant friction onboarding new counterparties for larger OTC FX blocks. We're primarily dealing with $EURUSD and $GBPUSD, and while the rates are competitive once we're live, the initial KYB process often drags out for weeks, sometimes months, even with well-established prop firms. It feels like the industry hasn't quite standardized the due diligence for non-bank institutions dealing in size. This isn't about regulatory avoidance, but rather the sheer volume of redundant paperwork and the back-and-forth that seems disproportionate to the risk profile, especially for firms with clean audit trails. How are others navigating this to speed up deal flow, or have you found certain institutions are just inherently more streamlined in their new client intake?
We've definitely seen the same, especially with newer prop firms. The KYB process seems to be the bottleneck across the board, even for what should be straightforward setups.