Knight Capital’s Kee-Meng Tan demystifies HFT
“Demystifying High Frequency Trading” was the theme of the day when Kee-Meng Tan of Knight Capital offered listeners an inspirational presentation at a crowded Cinnober Keynote event.
Cinnober new series of Keynote Speakers presents initiated actors with roots in the financial world. The idea is to disseminate industry knowledge and news combined with personal reflections, in an easy and informal way, primarily to company personnel.
Kee-Meng Tan, Managing Director for Knight Capital Europe Limited, is the head of Knight’s market-making business in Europe, commanding extensive experience in HFT.
“We who work with HFT are often confronted with myths that flourish in the financial industry,” says Kee-Meng Tan. “It’s generally acknowledged that HFT contributes greatly to market liquidity and price efficiencies, as well as reducing spreads. But it is absolutely incorrect that it increases market volatility, diminishes the returns of other investors, or is highly leveraged.
“We have now had two extremely interesting and instructive Keynote speakers in as many weeks,” says Javier Tordable, CEO of Cinnober. “Last week Diana Chan spoke about clearing and now we have gained a little different and positive perspective on high-frequency trading, where we have a tailor made product on TRADEXpress Ultra. The Keynotes have been very well received internally, and our next opportunity for inspiration will likely come in the early fall. They give Cinnober staff a chance to engage in dialogue with speakers personally and directly.”
Highly experienced in managing equity execution businesses in Europe and Asia, Kee-Meng Tan joined Knight in March 2008 to lead the European expansion of Knight’s Electronic Trading Group (ETG). As an integral part of Knight’s market-making business, ETG incorporates Knight’s retail and institutional electronic market-making as well as Knight Link, the firm’s highly successful off-exchange liquidity source. Kee-Meng Tan is also responsible for Knight’s cash market-making desk that focuses on small- and mid-cap European equities and for Knight’s relationship with Equiduct, a leading destination for retail best execution in Europe.
Prior to joining Knight, Kee-Meng Tan was a derivatives trader at CQS, a London-based multi-strategy hedge fund and the European Head of Global Execution Services at JP Morgan in London. Previous to that, he was the Head of Delta One Trading at ABN Amro Bank NV in Hong Kong as well as Head of Asian Portfolio Trading at Goldman Sachs, Deutsche Securities and Morgan Stanley.
Kee-Meng is currently on the boards of Easdaq, Equiduct’s parent company and Knight Capital Europe. He holds a BA from Vassar College and an MBA from New York University.