New Issue: HSBC sells $10.3 million return optimization securities linked to iShares MSCI EM

By Marisa Wong

Madison, Wis., Dec. 27 - HSBC USA Inc. priced $10.3 million of return optimization securities with contingent protection due Dec. 31, 2012 linked to the iShares MSCI Emerging Markets index fund, according to a 424B2 with the Securities and Exchange Commission.

The payout at maturity will be par of $10.00 plus 1.5 times any index fund gain, subject to a maximum return of 30.15%. Investors will receive par if the fund finishes at or above 75% of the initial level and will be exposed to any decline if the fund breaches the trigger price.

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

Issuer:	HSBC USA Inc.
Issue:	Return optimization securities with contingent protection
Underlying ETF:	iShares MSCI Emerging Markets index fund
Amount:	$10,298,760
Maturity:	Dec. 31, 2012
Coupon:	0%
Price:	Par of $10.00
Payout at maturity:	Par plus 1.5 times any fund gain, capped at 30.15%; par if fund falls by 25% or less; par plus fund return if fund falls by more than 25%
Initial share price:	$46.67
Trigger price:	$35.00
Pricing date:	Dec. 22
Settlement date:	Dec. 28
Agent:	UBS Financial Services Inc. and HSBC USA Inc.
Fees:	2%
Cusip:	40432R351

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