New Issue: HSBC prices $411,000 autocallable notes tied to Market Vectors Gold Miners ETF

By Jennifer Chiou

New York, June 28 - HSBC USA Inc. priced $411,000 of 0% autocallable notes due June 30, 2011 linked to the Market Vectors Gold Miners exchange-traded fund, according to a 424B2 with the Securities and Exchange Commission.

If the ETF's shares close at or above the initial share price of any of the quarterly observation dates, the notes will be automatically called and investors will receive par plus an annualized call premium of 14%.

The observation dates are Sept. 24, 2010, Dec. 27, 2010, March 28, 2011 and June 27, 2011.

If the notes are not called and the share price remains at or above 70% of the initial price during the life of the notes, the payout at maturity will be par. If the share price is ever less than 70% of the initial price, a trigger event will have occurred and the payout will be par for losses up to 10%, with investors sharing in losses beyond the buffer.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Autocallable notes
Underlying fund:	Market Vectors Gold Miners ETF
Amount:	$411,000
Maturity:	June 30, 2011
Coupon:	0%
Price:	Par
Payout at maturity:	Par if final fund level is at least 70% of initial level; otherwise, par for losses up to 10% and investors share in losses beyond the buffer
Call:	At par plus 14% per year if fund closes at or above initial level on Sept. 24, 2010, Dec. 27, 2010, March 28, 2011 and June 27, 2011
Initial fund level:	$52.18
Pricing date:	June 24
Settlement date:	June 29
Agent:	HSBC Securities (USA) Inc.
Fees:	2.07%
Cusip:	4042K02X2

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