Speed read

HSBC Securities Services (excluding Issuer Services) is to be combined with HSBC Global Markets.

New unit will be named Markets and Securities Services. HSBC will expand its Prime Financing business.

A new product area, Securities Financing, will comprise Equity Prime Financing, Rates and Credit Repo activities and Collateral Treasury.

Derivatives Clearing Services will move into Securities Services.

Issuer Services will become part of HSBC Capital Markets.

In full

The following excerpt from a memo sent by Greg Guyett and Georges Elhedery, Co-Heads of HSBC Global Banking and Markets, earlier this week, explains changes that will affect the bank's securities services business from later in the spring.

HSBC Securities Services –

Effective from today (March 2) and for an interim period only, Allegra Berman and Richard Godfrey, Co-Heads of Securities Services, will report to Greg Guyett, due to the private side designation of Securities Services.

However, we are undergoing appropriate due diligence to move this business area to the public side. Following completion, expected in May, Securities Services (excluding Issuer Services) will be combined with Global Markets into a new unit named Markets and Securities Services.

This combined entity will provide a number of significant opportunities, including enhancing our institutional client relationships and expanding our prime financing business. The following changes will also come into effect at that point.

Allegra Berman and Richard Godfrey will report to Georges and take on newly expanded positions in addition to their roles as Co-Heads of Securities Services.

Allegra will become Head of Institutional Sales for Markets and Securities Services.

Richard will lead a new product area, named Securities Financing, jointly with Hossein Zaimi, Global Head of Equities. This will comprise Equity Prime Financing, Rates and Credit Repo activities and Collateral Treasury.

Derivatives Clearing Services will move under Securities Services. Najib Lamhaouar, Global Head of OTC Clearing and Exchange-Traded Derivatives, will report to Allegra and Richard, and join the Securities Services Executive Committee.

Issuer Services, which is currently part of Securities Services, will remain a private side activity and become part of Capital Markets to align with other issuer client activities. Giovanni Fenocchi, Head of Issuer Services, will report to Alexi Chan/Ray Doody, Co-Heads of Capital Markets, effective in Q2 following completion of all necessary due diligence.

The following is a note from Allegra Berman and Richard Godfrey sent to all HSS colleagues globally on the same day.

Dear colleagues,

Following recent business update announcements, you will have today seen the organisational announcement from Global Banking and Markets Co-Heads, Greg Guyett and Georges Elhedery.

We are delighted and excited to be brought together with Global Markets in the creation of the new Markets and Securities Services unit. Recognising increasing client demand for comprehensive and seamless solutions and services, this alignment of products and capabilities under one umbrella will help improve the client experience and better position us to capture increased market share and client revenue growth.

This unit will enable Global Banking and Markets to focus on supporting our institutional clients across the entire investment value chain - from research, market analysis, financing and execution to investor servicing, valuation, reporting, custody and clearing.

For clarity, Securities Services will continue to be led by our Executive Committee and we will report into this new unit led by Georges Elhedery. These changes are expected to take effect in May, following completion of all necessary due diligence.

Recent Group and Global Banking and Markets announcements have clearly emphasised the importance of increasing collaboration between Global Banking and Commercial Banking.

The Issuer Services business is ideally positioned to provide solutions for both client groups and by putting this business alongside the origination teams in Global Banking, it will only help increase client cross-product and cross-business referrals, which is the key for growing our revenues in this client sector.

This builds on the excellent early momentum we have already seen. Issuer Services, led by Giovanni Fenocchi, will join Capital Markets as part of Global Banking enabling this closer collaboration for further growth.

Gio will provide his teams with more clarity around what this change means and the next steps for the transition. Meanwhile, we wish them continued success and look forward to continuing to work together more broadly in Global Banking and Markets.

Aligning Issuer Services with Global Banking, and Securities Services with Global Markets will create clear separation between the private and public side divisions of Global Banking and Markets respectively.

It will help simplify how we work together with due consideration to compliance and conduct. A simplified structure, increased collaboration, and the alignment of business and support functions will ensure a more seamless client experience and will give us a better platform to enhance and grow relationships with our clients.

We are also delighted to welcome the Derivatives Clearing business into Securities Services. Their agency products are a natural fit with our existing product suite and they serve the same institutional client base.

This team is led by Najib Lamhaouar, current Global Head of OTC Clearing and Exchange-Traded Derivatives, who will report to us and will join the Securities Services Executive Committee.

As part of this transition, we will both be taking on additional responsibilities within Markets and Securities Services. Allegra will become Head of Institutional Sales for Markets and Securities Services, with Richard leading a new product area, Securities Financing, jointly with Hossein Zaimi, Global Head of Equities. We will remain Co-Heads of Securities Services.

These changes will not take effect until May as we still have to complete all necessary due diligence and work through a number of details. We appreciate this may be unsettling, but are committed to keeping you updated as we progress. We ask that you remain focussed on supporting our clients and each other during this time as we have much to do.

We will be inviting you to join us for a global webcast this week to provide further clarity and begin answering your questions. If you have any questions or concerns in the meantime please do not hesitate to speak to a member of our Executive Committee.

We are extremely proud of all that you have achieved over the last 18 months since becoming Co-Heads of Securities Services.

The strategy we shared with you at the last Global Conversation is the right one and is fully endorsed and supported by our key stakeholders across the Group, so our focus, plans and initiatives remain unchanged.

We will continue to play an important part in strengthening Global Banking and Markets's position as a top three global transaction bank and financing house, and HSBC's goal of being the world's leading international bank.

Being structured in this new way will bring significant opportunities for both our business and our people, and we are excited to be leading Securities Services through this change. This is an exciting new chapter for all of us.

Thank you all for your continued hard work, commitment and patience as our business evolves over the coming months.

Thanks,

Richard & Allegra

Richard Godfrey and Allegra Berman

Co-Heads of Securities Services

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Speed read

HSBC Securities Services (excluding Issuer Services) is to be combined with HSBC Global Markets.

New unit will be named Markets and Securities Services. HSBC will expand its Prime Financing business.

A new product area, Securities Financing, will comprise Equity Prime Financing, Rates and Credit Repo activities and Collateral Treasury.

Derivatives Clearing Services will move into Securities Services.

Issuer Services will become part of HSBC Capital Markets.

In full

The following excerpt from a memo sent by Greg Guyett and Georges Elhedery, Co-Heads of HSBC Global Banking and Markets, earlier this week, explains changes that will affect the bank's securities services business from later in the spring.

HSBC Securities Services –

Effective from today (March 2) and for an interim period only, Allegra Berman and Richard Godfrey, Co-Heads of Securities Services, will report to Greg Guyett, due to the private side designation of Securities Services.

However, we are undergoing appropriate due diligence to move this business area to the public side. Following completion, expected in May, Securities Services (excluding Issuer Services) will be combined with Global Markets into a new unit named Markets and Securities Services.

This combined entity will provide a number of significant opportunities, including enhancing our institutional client relationships and expanding our prime financing business. The following changes will also come into effect at that point.

Allegra Berman and Richard Godfrey will report to Georges and take on newly expanded positions in addition to their roles as Co-Heads of Securities Services.

Allegra will become Head of Institutional Sales for Markets and Securities Services.

Richard will lead a new product area, named Securities Financing, jointly with Hossein Zaimi, Global Head of Equities. This will comprise Equity Prime Financing, Rates and Credit Repo activities and Collateral Treasury.

Derivatives Clearing Services will move under Securities Services. Najib Lamhaouar, Global Head of OTC Clearing and Exchange-Traded Derivatives, will report to Allegra and Richard, and join the Securities Services Executive Committee.

Issuer Services, which is currently part of Securities Services, will remain a private side activity and become part of Capital Markets to align with other issuer client activities. Giovanni Fenocchi, Head of Issuer Services, will report to Alexi Chan/Ray Doody, Co-Heads of Capital Markets, effective in Q2 following completion of all necessary due diligence.

The following is a note from Allegra Berman and Richard Godfrey sent to all HSS colleagues globally on the same day.

Dear colleagues,

Following recent business update announcements, you will have today seen the organisational announcement from Global Banking and Markets Co-Heads, Greg Guyett and Georges Elhedery.

We are delighted and excited to be brought together with Global Markets in the creation of the new Markets and Securities Services unit. Recognising increasing client demand for comprehensive and seamless solutions and services, this alignment of products and capabilities under one umbrella will help improve the client experience and better position us to capture increased market share and client revenue growth.

This unit will enable Global Banking and Markets to focus on supporting our institutional clients across the entire investment value chain - from research, market analysis, financing and execution to investor servicing, valuation, reporting, custody and clearing.

For clarity, Securities Services will continue to be led by our Executive Committee and we will report into this new unit led by Georges Elhedery. These changes are expected to take effect in May, following completion of all necessary due diligence.

Recent Group and Global Banking and Markets announcements have clearly emphasised the importance of increasing collaboration between Global Banking and Commercial Banking.

The Issuer Services business is ideally positioned to provide solutions for both client groups and by putting this business alongside the origination teams in Global Banking, it will only help increase client cross-product and cross-business referrals, which is the key for growing our revenues in this client sector.

This builds on the excellent early momentum we have already seen. Issuer Services, led by Giovanni Fenocchi, will join Capital Markets as part of Global Banking enabling this closer collaboration for further growth.

Gio will provide his teams with more clarity around what this change means and the next steps for the transition. Meanwhile, we wish them continued success and look forward to continuing to work together more broadly in Global Banking and Markets.

Aligning Issuer Services with Global Banking, and Securities Services with Global Markets will create clear separation between the private and public side divisions of Global Banking and Markets respectively.

It will help simplify how we work together with due consideration to compliance and conduct. A simplified structure, increased collaboration, and the alignment of business and support functions will ensure a more seamless client experience and will give us a better platform to enhance and grow relationships with our clients.

We are also delighted to welcome the Derivatives Clearing business into Securities Services. Their agency products are a natural fit with our existing product suite and they serve the same institutional client base.

This team is led by Najib Lamhaouar, current Global Head of OTC Clearing and Exchange-Traded Derivatives, who will report to us and will join the Securities Services Executive Committee.

As part of this transition, we will both be taking on additional responsibilities within Markets and Securities Services. Allegra will become Head of Institutional Sales for Markets and Securities Services, with Richard leading a new product area, Securities Financing, jointly with Hossein Zaimi, Global Head of Equities. We will remain Co-Heads of Securities Services.

These changes will not take effect until May as we still have to complete all necessary due diligence and work through a number of details. We appreciate this may be unsettling, but are committed to keeping you updated as we progress. We ask that you remain focussed on supporting our clients and each other during this time as we have much to do.

We will be inviting you to join us for a global webcast this week to provide further clarity and begin answering your questions. If you have any questions or concerns in the meantime please do not hesitate to speak to a member of our Executive Committee.

We are extremely proud of all that you have achieved over the last 18 months since becoming Co-Heads of Securities Services.

The strategy we shared with you at the last Global Conversation is the right one and is fully endorsed and supported by our key stakeholders across the Group, so our focus, plans and initiatives remain unchanged.

We will continue to play an important part in strengthening Global Banking and Markets's position as a top three global transaction bank and financing house, and HSBC's goal of being the world's leading international bank.

Being structured in this new way will bring significant opportunities for both our business and our people, and we are excited to be leading Securities Services through this change. This is an exciting new chapter for all of us.

Thank you all for your continued hard work, commitment and patience as our business evolves over the coming months.

Thanks,

Richard & Allegra

Richard Godfrey and Allegra Berman

Co-Heads of Securities Services