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Enoch Yiu

Transparency begins at home, believes Lee Porter.
For the head of US "dark pool" operator Liquidnet's Asia-Pacific office, transparency within the organisation is the first step to dispel the aura of mystery that such electronic trading platforms generate because they do not give out any information on investor identities or trade volumes.
Born in Britain, Porter did not follow his twin brother into the police force. Instead, he joined the financial industry, starting as a junior staff member in HSBC's office in Britain, followed by stints at several other financial institutions including Citibank and Mitsubishi Corp Finance.
He joined Credit Suisse in 1997 and, after working in various positions there, was appointed director of regional cash equity operations. While at Credit Suisse, he worked in London, New York, Singapore and Hong Kong.
Porter joined Liquidnet in July 2007 as head of Asia-Pacific. The company conducts dark pools in 10 markets in the region.
He tells the South China Morning Post why he thinks it is important to encourage staff to speak their minds and why he needs a team with diverse backgrounds and language skills.
You were formerly with an investment bank. Why did you choose to join a dark-pool operator?
I joined Liquidnet in 2007 as I found it very different from the investment banks I have worked with. Credit Suisse is a huge multinational organisation while Liquidnet is much smaller. I had the chance to set up Liquidnet's Asia-Pacific business. I thought that was a fantastic opportunity and challenge to learn how to grow a business in this region.
 
Now that you are heading a dark-pool operation, what do you think is the key to success for managing such an electronic trading platform?
I am a general administration manager and not an expert in technology or sales. But I can hire technology experts to take care of the platform and I can get sales experts to meet the customers. Likewise, I can hire lawyers and accountants to do their bit. I don't think anybody in the senior management can have expertise in everything, but one needs to have a huge degree of trust in the team to make it work.
You need a group of people with different gender, cultural background, age and skill sets to work as a team for a company like us that operates in different markets. In Asia-Pacific, we now operate in 10 markets, with four administrative offices in Hong Kong, Australia, Japan and Singapore. We have people who can speak the local languages to serve local clients. Their age ranges from 23 to 46. I am 41. I think it is important to have women in the team as they are increasingly getting higher education. More than 50 per cent of Hong Kong's population is female but only 10 per cent of the city's directors are women, which is not ideal.
 
What is your management style? 
I like it casual. I do not want people to wear tie and suit to work. I only wore a tie at my wedding! People trade with me not because I am wearing a suit but because of the quality of the platform relationship along the way.
We offer free lunch for our staff every Friday. All staff members can speak their minds on how to improve things. If a junior staff member comes up with something that can take the company forward, I take it seriously. I also allow the staff to travel to meet people to widen their views and experience.
 
How should companies deal with good and bad performers?
I think firing people who do it wrong is as important as hiring people who do it right. I hire right people who are good fits for their jobs. When I think I have made a mistake in hiring, I try to correct it quickly.
 
Do you think dark pools are a threat to traditional exchanges?
I don't think so. Dark pool is a facility for investors who need to make large block trades electronically. Even before dark pools, brokers would use the telephone to match large block trades, but manually.
In many markets, dark pools are running alongside the traditional exchanges. The Securities and Futures Commission is reviewing the current regulation for dark pools. I believe Hong Kong should follow the international trend and consider what is being done in Australia and Canada. We hope the regulator here will adopt an approach that, while adding transparency in the market, will also help in the development of dark pools.
 
Liquidnet is part of a US company. How much freedom do you have in managing the Asian unit?
My boss is in the United States but the people here in Asia are allowed to work in the way that fits the local culture. Each market has its own culture and the way to connect with local customers and regulators varies from market to market. This is why we use different approaches for different markets and adjust our strategy to fit in with the Asian culture. We also have programmes to help the needy in local communities.
 
What do you do to relax?
I have three children, who are nine, six and five. They take up most of my spare time.
I also like playing soccer and hiking. Hong Kong is a great place for hiking. I like to walk from my home in Wan Chai to the office in Central, and back, which is great exercise.
 
As a Westerner living in Hong Kong for eight years, how do you find the city? What do you like the most and the least here?
Hong Kong has become my home. I love the city. It's a good place to do business. You can meet people from different industries. I believe living in Asia has widened my horizons.
My wife is a British-born Chinese and her family was from Hong Kong. One of my three children was born in Singapore and the other two in Hong Kong. They now go to the local kindergarten and can all speak Cantonese. I can follow what they are saying but I'm not good at speaking the language.


Bright ideas from dark-pool operator Liquidnet

Illustration: Martin Megino

Lee Porter

Business

Companies

Liquidnet regional chief says transparency and a diverse team are the key to success for managing the electronic trading platform


For the head of US "dark pool" operator Liquidnet's Asia-Pacific office, transparency within the organisation is the first step to dispel the aura of mystery that such electronic trading platforms generate because they do not give out any information on investor identities or trade volumes.
