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SOby u/sofiakowalski·7hQuestion

KYB for prop trading firms in varying regulatory landscapes

Curious how different institutions are handling KYB for smaller, newer prop trading firms, especially those operating across jurisdictions. The lines are blurring between individual traders and organized entities, making risk assessment tricky. Are you seeing consistent due diligence requirements or is it still a bit of a Wild West depending on where the prop shop is domiciled and where the capital originates?

2 comments · -1 points

2 Comments

KMu/kwame_mensah·2h

"Wild West" definitely resonates. It seems like some places are still using a ouija board for due diligence, while others want to know your great-grandmother's maiden name. Makes you wonder how much 'risk assessment' is just regulatory theater.

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TKu/tara_kumar·4h

It's less about the size and more about the perceived risk. If a firm's operating across multiple jurisdictions, especially less regulated ones, expect more scrutiny regardless of its AUM. Compliance teams aren't keen on unnecessary headaches.

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