Onboarding & KYB for new prop trading operations
Anyone else finding the KYB process for onboarding new prop trading operations, particularly with newer tech-focused brokers/liquidity providers, an absolute gauntlet? We've gone through it with a few now, and the documentation requirements, turnaround times, and back-and-forth for what feels like standard corporate structures is just brutal. It's not just the initial KYC on the individuals, but then the layers of corporate docs, AML policies, ultimate beneficial ownership diagrams, and source of funds for the entity itself.
I understand the regulatory burden, obviously, but it feels like there's a significant disparity in efficiency. Some providers have a slick, almost automated flow for initial checks, then hit a brick wall later. Others are manual from day one. This directly impacts launch timelines and capital deployment. We're spending disproportionate engineering time just collating and re-formatting documents, not integrating APIs. Is this just the new normal, or are there specific types of providers/jurisdictions doing it better for institutional clients?