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FX & Commodities
These notices set out some of the key aspects of the relationship between HSBC and its clients when dealing with HSBC in foreign exchange and commodities products. These notices are intended to supplement other disclosures concerning the terms and conditions of FX & Commodities transactions with HSBC, and by continuing to trade with HSBC, you do so on the basis of the information described below:
- FX & Metals products (PDF, 448KB): Where HSBC transacts FX & Metals products as a principal dealer and market maker. Relevant disclosures are also set out in the following disclosure cover sheet (PDF, 871KB).
Fixed Income
This notice sets out some of the key aspects of the relationship between HSBC (us) and its clients, including customers and counterparties (you), when dealing in Fixed Income (FI) products, where we transact in the FI markets as a dealer and market maker. It is intended to supplement other disclosures concerning the terms and conditions of FI transactions with us and by continuing to trade FI with us, clients do so on the basis of the information described here (PDF, 162KB). This notice is subject to our regulatory duties to our clients and any written agreement we have with you or written terms of business or written disclosure we have provided to you.
Equities
This notice sets out some of the key aspects of the relationship between HSBC (us) and its clients, including customers and counterparties (you), when dealing in Equities (EQ) products. It is intended to supplement other disclosures concerning the terms and conditions of EQ transactions with us and by continuing to trade EQ with us, clients do so on the basis of the information described here (PDF, 104KB). This notice is subject to our regulatory duties to our clients and any written agreement we have with you or written terms of business or written disclosure we have provided to you.
Equity Swaps
This notice highlights key aspects of HSBC (us/our) Synthetic Fill Engine for Equity Swaps, which facilitates customers' and counterparties' (you/your) unwind of long swap positions using our trading book to take-up/unwind in part or in whole the hedge positions in the facilitation process. The Synthetic Fill Engine operates during standard exchange hours and may partially or fully price your swap unwinds off-exchange. We monitor execution quality to ensure competitive pricing and adherence to optimal execution expectations. Orders interacting with the Synthetic Fill Engine are visible real time internally on a need-to-know basis for operational, risk monitoring and compliance purposes. We could suspend the engine's operation if there is a technical or other matter that affects the engine's functional operation without notice.
Exchange Traded Derivatives
This notice sets out some of the key aspects of the relationship between HSBC (us) and its clients, including customers and counterparties (you), when dealing in Exchange Traded Derivatives products. It is intended to supplement other disclosures concerning the terms and conditions of Exchange Traded Derivatives transactions with us and by continuing to trade Exchange Traded Derivatives with us, clients do so on the basis of the information described here (PDF, 194KB). This notice is subject to our regulatory duties to our clients and any written agreement we have with you or written terms of business or written disclosure we have provided to you.
Post-execution client services information
To facilitate HSBC's post-execution Client Services within Global Banking and Markets Operations, please view the PE Client Services Information document here (PDF, 82KB) and provide all requested SSI and contact information.
Please be advised that settlement instructions (SSIs/SDIs) communicated to HSBC via unauthenticated methods such as e-mail, fax or post require validation as a control prior to updating the SSIs/SDIs within HSBC systems. Our validation process involves call back verification where an HSBC employee will call and authenticate the SSI details with the end client. As per HSBC policy and control requirement the call will be recorded and details confirmed over the call will be logged.
UK Ring-Fencing legislation
The global economic crisis which began in 2007, led to a host of regulatory reforms across the financial services industry designed to protect the taxpayer and the wider economy in the event of another crisis.
In 2013, legislation was passed in the UK requiring that certain universal banks in the UK such as HSBC, which offer personal, commercial and investment banking services, must separate, or ring-fence, their UK retail and commercial operations from any wholesale or any wholesale or investment banking activity. As a consequence, the HSBC Group was required to make certain structural changes in the UK.
Most of our Global Banking and Markets (GBM) clients and Commercial customers that are designated as non-bank Financial Institutions (including RFIs) are staying with HSBC Bank plc, known as the non-ring-fenced bank (NRFB), subject to meeting certain qualifying criteria.
Further information can be found here (PDF, 156KB).
ANNOUNCEMENT RELATED TO THE AMENDMENT OF EXECUTIVE ORDER 13959 BY EXECUTIVE ORDER 14032 OF 3 JUNE 2021
Executive Order (E.O.) 13959 of 12 November 2020, as amended by E.O. 14032, “Addressing the Threat From Securities Investments That Finance Certain Companies of the People's Republic of China” (the "amended E.O."), prohibits US Persons (as defined below) from engaging in certain transactions in publicly traded securities, or any publicly traded securities that are a derivative of, or are designed to provide investment exposure to such securities, of any entity determined by the US Department of Treasury to be a so-called Chinese military-industrial complex company (collectively the "Targeted Securities").
The amended E.O. defines US Persons as any “United States citizen, lawful permanent resident, entity organized under the laws of the United States or any jurisdiction within the United States (including non-US branches), or any person in the United States”.
The prohibitions under the amended E.O. take effect from 2 August 2021.
HSBC clients that are US Persons must not use HSBC products or services in undertaking any prohibited transactions.
With respect to custody services, HSBC expects to be able to continue delivering custody related services in relation to the Targeted Securities held outside of the United States.
With respect to any Targeted Securities listed or issued in the United States, HSBC will continue to hold these securities in custody to the extent permitted under the amended E.O., but may not process settlement of certain trades for US Persons from 2 August 2021.
Clients may wish to visit the US Department of Treasury website for additional information and to seek legal advice regarding compliance with the amended E.O.
