HSBC has launched a derivatives clearing service for institutional investors in India. The bank says both local and cross-border clients can now clear both equities and derivatives trades through HSBC.
HSBC’s Custody and Clearing business in India is now a Professional Clearing Member of the derivatives segment of the National Stock Exchange of India (NSE), enabling it to clear positions on behalf of investors who trade derivatives on the NSE.
HSC says the Indian derivatives market is among the top ten markets in the world terms of contracts traded on single stock futures, index futures and index options. With the huge surge in trading volumes in this market over the last couple of years, the demand for derivatives clearing services is increasing.
“This new service has further strengthened HSBC’s 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,” says Vikramaaditya, head of HSBC Securities Services in India. “Clients will benefit from a single window solution, timely and comprehensive reporting of positions and enhanced flexibility in managing their funds to meet margin requirements.”
James Hogan, global head of HSBC Custody and Clearing, says India is the first market in which the sub-custody network has offered such a service to clients. “We will be introducing derivatives clearing progressively across other markets in line with client demand,” he says.