Founded in: 1836
Headquarters in: London, United Kingdom
The HongKong and Shanghai Banking Corporation (HSBC) Bank PLC holds a reputation of being one of the largest banks/financial services providers in the world. The bank has an international network that spans over 80 countries in all continents of the world, with a total of 7,500 offices. It is truly a global bank.
HSBC is also one of the leading global Foreign Exchange (FX) liquidity providers, providing institutional level market maker services to brokerages and institutional investors. The liquidity provider services of HSBC supports transactional, hedging or investment strategy executions.
HSBC provides a host of solutions that allow it to provide liquidity from a purely transactional standpoint. Each solution is highly customized. HSBC provides the following solutions:
- Transactional FX,
- Algorithmic Execution
- FX indices
- FX Overlay
HSBC also offers FX Prime Services which allow clients to select and customize solutions to fit their individual needs. HSBC’s liquidity provision service not only provides pricing for FX assets, but also allows the customer to analyze FX risk using the innovative research tools put at their disposal.
HSBC’s FX division operates from three main zones: London, Hong Kong and New York, providing all round coverage of the forex market. HSBC provides a deep pool of liquidity across several FX assets using electronic, (third party and bilateral) as well as voice channels for all FX derivative and cash-based solutions. Whether the product is spot forex, forex forwards, NDF, forex swaps or vanilla/exotic FX options, HSBC can provide bespoke solutions with advice provided by a team of in-house derivatives specialists.
HSBC’s Liquidity Offering
HSBC has a vast network of liquidity. Operating as a pivotal FX market maker, HSBC provides its clients access to liquidity through the length and breadth of most FX markets. These FX markets include a host of the major/minor G10 currency pairs as well as several key emerging market currency pairs.
HSBC also provides its clients with FX algorithmic solutions. By using the latest in analytics technology and coupling it with the massive liquidity of the HSBC global network, clients can be guaranteed seamless and smarter FX execution across the G10 and emerging market currencies. All these serve to ensure that the client’s FX execution is made more efficient.
HSBC’s Transactional FX Solutions
HSBC has developed a Transactional Foreign Exchange (Transactional FX) suite of solutions to ease payment challenges of its clients, and also allow for better control of risks, unlock sales opportunities and maximize the efficiency of the product offering to the target market.
HSBC’s Transactional FX solutions include the following products:
- A Dynamic Currency Converter for brokers, which displays their client’s currency position at the time of payment.
- Multi-Currency Pricing.
- HSBC Global Disbursements, which permits the brokers to make cross-border payments in 65 local currencies, all from one operational account.
- HSBCnet Get Rate, which permits the broker to instantly book and view FX rates for Priority Payments and inter-account transfers.
- Liquidity Seeking strategy, for clients who wish to match order flows across a range of venues and achieve proportional execution.
- Transaction Cost Analysis strategy, which displays order details of trade deals that have been performed using the FX Algo service of HSBC.
- Time Weighted Average Price (TWAP) strategy, which aids the broker’s clients trade evenly over a specified time period, as well as choose the best avenues for trade executions.
- Implementation Shortfall strategy, which cuts off any chances of slippage at the start time of the order.