Onboarding Friction for Mid-Sized Proprietary Trading Firms
Curious if others are experiencing significant friction when trying to onboard new mid-sized prop trading operations with tier-1 brokers or prime service providers. We're well-capitalized, established, and fully compliant, yet the KYB process, particularly for entities with complex, multi-jurisdictional ownership structures, seems to have become disproportionately burdensome. The timelines quoted versus actual often double, and the demands for 'additional information' feel almost arbitrary at times. It ties up resources unnecessarily.
Is this just the new normal for risk aversion post-various regulatory shifts, or are some providers genuinely more efficient in navigating these complexities for legitimate businesses? We're evaluating alternatives but the liquidity and infrastructure offered by the top-tier providers are hard to match. Any insights on navigating this more effectively would be appreciated.
It's not just you. The "know your business" (KYB) process seems to have ballooned post-GFC and then again after subsequent regulatory pushes. They're basically looking for reasons to say no, or at least make it prohibitively difficult for anything not fitting a simple mold.