HSBC Securities Services provides a comprehensive suite of securities services products to asset managers including the following services:

Investment Operations

HSBC Securities Services’ core services in investment operations offers our clients solutions for trade processing, derivatives processing, asset servicing and reconciliations. Trade processing covers the lifecycle of the transaction process including trade capture, trade matching, settlement instruction generation and settlement management, through to reconciliation of resultant stock and cash movements.

Our service offering for investment operations is based on a number of key principles:

• A global operating model that is capable of supporting our clients on a consistent basis irrespective of the geographic location(s) from which they may choose to manage and execute trades;
• A common operating model across multiple products including both traditional and alternative fund ranges;
• A component-based technology architecture that allows clients to select from a menu of available services;
• Provided on a 24 hour basis using ‘follow the sun’ / ‘pass the book’ principles;
• An operating model which, where the jurisdiction allows, utilises the same records for investment accounting and fund accounting. Data provided for the ‘investment book of records’ (IBOR) is produced by the same records as the accounting records ensuring consistency;
• Operating model supports an extensive range of instruments including all securities, funds, FX and money market, including support for derivatives.

The benefit of our investment operations modular approach is that managers can choose certain functions within the service that they would like to outsource, while keeping certain functions in house. It also allows for clients to outsource middle office activity for managed accounts while using multiple administrators and custodians.

Our offering allows the client to outsource the full end-to-end lifecycle of investment operations to an organisation committed to delivering the highest service standards with a comprehensive, consistent yet flexible solution. Our commitment to these services supports clients in managing the deluge of change, both regulatory and market.

Treasury & Cash Management

A prerequisite of effective cash management is efficient cash administration i.e. ensuring that monies are ‘in the right place, at the right time and reported to the client in an effective timely manner’. As such a custodian bank provider has to have the systems, personnel and access to local and global payments systems to support the client’s payment and liquidity needs. Our services include;

• Interest Bearing Cash Accounts
• Cash Forecasting and Yield Enhancement Alternatives
• Currency Sweeps
• Automated sweeps to internal Institutional Money Market Funds
• Notional Pooling

Our Liquidity Investment Solution (LIS) is a fully automated, non-discretionary subscription and redemption cash sweep into money market funds. Clients can chose the fund of their choice from a number of providers and currencies. Clients establish a direct relationship with the fund provider and set the investment parameters in line with their cash management and investment requirements.

Fund Accounting & Administration

HSBC’s portfolio accounting, valuation and pricing service is delivered through our comprehensive technology infrastructure which is robust, responsive, scalable and above all, a proven solution to support our clients and markets.

Our operating model leverages our global reach to benefit our customers. In this context, our approach involves delegating time-sensitive processes relating to portfolio accounting and fund administration to our offices in the most appropriate time zone, allowing for early availability of daily net asset valuations. We currently service funds domiciled across 30 jurisdictions,

Securities Lending

Our securities lending product offers our clients flexible programmes on either an HSBC custody or third-party custody basis with HSBC’s comprehensive borrower default indemnity being provided as standard. HSBC Securities Services is a well-recognised and active player in the securities market globally and offers a bespoke product to meet each individual client’s needs. All securities lending activity is fully integrated with HSBC Securities Services’ operations, leveraging the settlements, risk, corporate action, tax, compliance, audit, IT, product development and other core infrastructure of HSBC globally.

Foreign Exchange

We pride ourselves in providing access to all currency markets, with a global presence via our network of regional offices. For further details of our Foreign Exchange solution, in addition to other solutions offered by HSBC Global Markets, please go to http://www.gbm.hsbc.com/solutions/markets

Global Custody

Our global custody service proposition provides an end-to-end solution within a highly-automated environment, providing safekeeping, settlement and asset servicing capabilities. The service is provided by HSBC’s global custody network, which currently spans 85 countries and 88 markets, 36 of which are serviced by HSBC’s own proprietary network.

We are able to safekeep the majority of asset classes and provide full asset servicing for those assets that can be held in a recognised depositary or transfer agent.

Global Distribution & Transfer Agency (GDTA)

HSBC provides an extensive and comprehensive Global Distribution Support and Transfer Agency (GDTA) product suite, underpinned by an established global operating model, servicing over 885,000 investors in 152 countries. The service covers full registrar and distributor support models as well as local client servicing and is targeted towards investment managers, distributors and investors globally with support across different time zones. 

Our GDTA system is able to maintain and accommodate most structures including but not limited to Irish and Luxembourg cross border UCITS, OEICS, Unit Trusts, Money Market Funds, ETFs, Hedge Funds, RQFII and QFII products, and Tax Transparent Fund structures such as the UK ACS and Irish CCF. Flexible fund structures can be created within our system to support clients who manage multiple funds including multiple share classes and multiple currencies.

Trustee & Depositary Services (TDS)

HSBC Securities Services provide fiduciary services in a total of 16 jurisdictions globally, including the UK, Ireland, Luxembourg, Germany, Guernsey, Cayman Islands, Bermuda, Hong Kong, Singapore, South Korea and Malaysia for over 3,000 funds with assets in excess of USD680 billion (of which we service USD136 billion in the UK). Through this market exposure, HSBC as Trustee and Depositary has experience of funds investing in both local and global markets, with a mixture of asset classes.

Our oversight duties as Depositary include

• Cash flow monitoring;
• Assets monitoring and ownership verification;
• Investment Compliance Monitoring;
• Reviewing aged un-settled and failed transactions (on both portfolio and register trading activities);
• Reviewing fund income accrued / received, and distributions;
• Reviewing the NAV calculation control environment;
• Subscription and redemption monitoring;
• Client Monitoring and Due Diligence;
• Questionnaires and testing conducted by Client Monitoring team.