New Issue: HSBC prices $2.3 million enhanced market participation notes tied to Financial Select Sector

By Angela McDaniels

Tacoma, Wash., May 14 - HSBC USA Inc. priced $2.3 million of 0% enhanced market participation notes with contingent protection due Sept. 3, 2010 linked to the Financial Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par plus double any gain in the fund's share price, subject to a maximum return of 50%. Investors will receive par if the fund declines by 40% or less and will receive par plus the fund return if it declines by more than 40%.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Enhanced market participation notes with contingent protection
Underlying fund:	Financial Select Sector SPDR fund
Amount:	$2,301,000
Maturity:	Sept. 3, 2010
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus double any share price gain, up to maximum return of 50%; par if fund declines by 40% or less; par plus fund return if fund declines by more than 40%
Initial share price:	$12.00
Pricing date:	May 12
Settlement date:	May 15
Agent:	HSBC Securities (USA) Inc.
Fees:	1.1%

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