The new service gives HSBC the ability to clear positions on behalf of investors who trade derivatives on the National Stock Exchange of India (NSE). Upon offering the service, HSBC becomes a professional clearing member of the derivatives segment of the NSE. By definition, professional clearing members are clearing members who are not trading members.
Local and cross-border investors can now clear both equities and derivatives through HSBC in a market that is now ranked amongst the top 10 markets in terms of contracts traded on single stock futures, index futures and index options. It also marks a first for HSBCÆs custody and clearing business, which has never offered this clearing function in any other market.
ôIndia is the first market in our global sub-custody and clearing network to offer this service to clients, says James Hogan, global head of HSBC custody and clearing. ôWe will be introducing derivatives clearing progressively across other markets in line with client demand.ö
The announcement follows several months of preparation in which HSBC developed the right infrastructure to clear derivatives in India and will likely bolster its standing as the leading sub-custodian in the country for cross-border clients investing in India.
ôôThis new service has further strengthened HSBCÆs position as a one-stop solution provider for securities services in India and will enable us to provide an integrated offering across equities and derivatives to institutional investors,ö says Vikramaaditya, head of HSBC Securities Services India. ôClients will benefit from a single window solution, timely and comprehensive reporting of positions and enhanced flexibility in managing their funds to meet margin requirements.ö