Onboarding Friction for Mid-Sized Quant Shops
Running into a persistent issue lately with onboarding new brokers and payment service providers. It seems that many of the Tier 1 institutions, while offering competitive spreads and robust infrastructure once you're in, have incredibly protracted Know Your Business (KYB) processes. I'm not talking about basic due diligence; I'm referring to a seemingly endless loop of document requests, internal compliance reviews, and often, a lack of clear communication on timelines.
For a lean quant firm trying to diversify liquidity or access new markets, this delay translates directly into opportunity cost. We've had instances where it's taken 3-4 months to get an account fully operational, even with all required documentation submitted promptly. It feels like the process is optimized for larger, established funds with dedicated legal and compliance teams, but leaves mid-sized operators in a lurch. Wondering if others in the 'Deal Flow' room have encountered similar bottlenecks or found particular strategies to streamline these onboarding cycles, especially when trying to connect to multiple venues for different asset classes ($FX, $FI, $CRYPTO)? Any insights on which providers might offer a more agile, yet still secure, onboarding experience without sacrificing core infrastructure quality would be appreciated.