HSBC and Total in energy trading alliance

23rd Jul 2010 12:13

HSBC has teamed up with French oil heavyweight Total to create new energy-specific over-the-counter (OTC) derivative products for its wealthy clients. Total Oil Trading (TOTSA), the trading arm of Total, will provide the expertise on dealing, while HSBC provides the client base and credit risk management know-how."HSBC will benefit from TOTSA's experience in managing exposure to energy by combining physical infrastructure and risk management capabilities to deliver energy derivatives," the bank explained.The pair are finalising the initial product suite and operational platform and expect to offer the first products in the next few months. Talks about further energy products are ongoing."The suite of products stemming from this alliance will represent a very important component of the overall product offering to our clients, many of whom are based in emerging markets where commodities play a crucial role in economic development," Samir Assaf, Head of Global Markets at HSBC, said."The alliance will support their risk management, investment, and financing needs."