Onboarding Friction for Niche Energy Instruments
Anyone else finding it increasingly difficult to get proper onboarding for certain OTC energy derivatives, especially for smaller or more specialized entities? It seems like many prime brokers and even some of the larger prop firms are streamlining for FX/equities and the due diligence for anything outside their core offering, even when the books are clean, becomes a multi-month saga. This bottleneck is significant when trying to execute strategies that require rapid access to specific market segments, and the opportunity cost really adds up. Are there any smaller, more agile firms out there demonstrating better efficiency in this area, or is it just the cost of doing business with less liquid instruments now?
Definitely noticing this too. It feels like the compliance overhead for anything that isn't plain vanilla is just too high for them to bother with smaller accounts now. Makes it tough for anyone trying to carve out a niche.