Liquidity routing for the unfunded broker
If you are pre-launch and don't yet have prime credit, your routing options are tighter than the marketing decks suggest. Here is how we sequence LP onboarding for new brokers.
Administrator
Pre-launch brokers ask the same question every quarter: which LPs should we onboard first? The honest answer is shaped less by features and more by your credit position, your expected first-month volume, and your regulator's view of LP concentration.
Step 1: Map your real flow
Estimate first-month flow conservatively. We have seen pitch decks promise 2bn notional in month 1; six weeks later we are reconciling 2m. Plan for the smaller number.
Step 2: Pick LPs that fit your credit, not your marketing
If you can't post the credit, you can't trade the size. Pick LPs that work at your credit profile and stair-step from there.
Step 3: Build redundancy from day one
Two LPs minimum. Three is better. Document fallback rules. Test them before go-live.
Step 4: Document concentration
Regulators read concentration. So do acquirers. A clear concentration policy beats a clever one.
We walk every new broker through a 4-week LP onboarding plan that lines up with the licensing and platform timelines.
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