HSBC Securities Services India launches derivatives information web platform

New platform giving near real-time information on derivatives trades labelled ‘first-of-its-kind’ by HSS India. 

By Jonathan Watkins

HSBC Securities Services (HSS) in India has launched a new web platform that will allow HSBC’s institutional investors to get access to near real-time information on their futures and options (F&O) trades. 

In what the bank has dubbed ‘the first-of-its-kind’DerivEasy is aimed at assisting investors in making time-critical investment decisions and enhancing their risk management process. 

HSS said DerivEasy intends to simplify the trade validation process, support investors in monitoring of margin requirements on existing and prospective trades, collateral utilisation, and position limits. The platform also offers setting up of customisable alerts to track critical information, amongst many other features.  

It is our constant endeavour to support clients through access to innovative platforms and tools that aid their decision making, including risk management,” said Anuj Rathi, head of HSBC Securities Services, India. “DerivEasy is one such tool. An industry first, this platform is a culmination of feedback from our clients and market participants and we truly believe it will set a new market standard in this area.” 

The platform has earned praise from market infrastructure and HSBC’s buy-side clients alike. 

Ravi Varanasi, head of business development at the National Stock Exchange said the platform is “a step in the right direction towards building market infrastructure and growth through the use of data and digital.” 

Meanwhile, Ramamoorthy Rajagopal, COO of DSP Mutual Fund India, client of HSBC India said: “DerivEasy is one such unique solution that will help institutional F&O investors manage their investments more efficiently by having access to realtime information.” 

HSBC’s investment in the platform follows a major onboarding at the start of 2020 where its Indian securities services division completed the transition of Franklin Templeton’s assets in India into its custody and fund services business. 

Franklin Templeton is one of the ten largest asset managers in India with over $18 billion of assets under management in the country. 

Many custodians have stepped up their efforts to capture both domestic and foreign demand in India. Foreign sentiment to invest in India has grown significantly over the years, as lawmakers and financial regulators continue to implement policies to ease access for foreign portfolio investors (FPIs).

These include improving India’s market infrastructures to meet international standards and provide a wider range of services, introducing interoperability with clearing houses to simplify settlement, refining KYC requirements, and making the onboarding process easier. 

With around $1.2 trillion of assets held in custody by local and agent banks, the custody market is expected to almost double within the next four to five years. Assets under custody from PFIs are projected to grow from $400-500 billion to $800-900 billion.