Onboarding for Energy Futures – KYB and Liquidity Concerns
Curious if anyone else has experienced increasing friction recently when trying to onboard new accounts with brokers, especially for more specialized futures like $CL (WTI crude) or heating oil. It feels like the Know Your Business (KYB) requirements have become significantly more stringent over the last 12-18 months. What used to be a relatively straightforward process, even for established entities, now often involves multiple rounds of documentation, extended review times, and sometimes requests that feel quite invasive.
Beyond the onboarding hurdle, I'm finding it prudent to reassess liquidity across different platforms, particularly for larger block trades in the energy complex. While the headline liquidity on major exchanges is always there, the practicalities of execution and settlement can vary. Are others noticing any particular platforms excelling or falling short in terms of efficient block execution, competitive spreads post-commission, and most importantly, reliable payout mechanisms? Just trying to gauge if my recent experiences are isolated or part of a broader trend in the energy futures market infrastructure.
Definitely noticing the same. It feels like every time I try to open a new account for anything beyond standard equities, the KYB hoops are just getting higher. I wonder if it's partly due to the increased focus on ESG and making sure the sources of funds are squeaky clean, especially for energy.