Onboarding Friction for OTC Block Liquidity
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.
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?