New Issue: HSBC prices $3.5 million barrier optimization securities linked to S&P 500 via UBS

By Angela McDaniels

Tacoma, Wash., May 19 - HSBC USA Inc. priced $3.5 million of 0% barrier optimization securities with partial protection due Aug. 20, 2010 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

UBS Financial Services Inc. and HSBC USA Inc. are the agents.

If the index ever exceeds the index barrier during the life of the notes, the payout at maturity will be par of $10 plus 11% per note. The index barrier is 145% of the index's initial level.

If the index does not exceed the index barrier during the life of the notes, the payout will be par plus any index gain, par if the index declines by 15% or less or par minus 1% for every 1% that the index declines beyond 15%.

Issuer:	HSBC USA Inc.
Issue:	Barrier optimization securities with partial protection
Underlying index:	S&P 500
Amount:	$3,499,290
Maturity:	Aug. 20, 2010
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par plus 11% if index exceeds barrier level during life of notes; otherwise, par plus any index gain, par if index falls by up to 15% or par minus 1% for each 1% decline beyond 15%
Initial index level:	882.88
Index barrier:	1,280.18, 145% of initial level
Pricing date:	May 15
Settlement date:	May 20
Agents:	UBS Financial Services Inc. and HSBC USA Inc.
Fees:	1.5%

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