HSBC Bank Inks Strategic Alliance In Energy Trading With TOTSA

23rd Jul 2010 10:59

LONDON (Dow Jones)--HSBC Bank PLC said Friday it establishes a strategic alliance in energy trading with Total Oil Trading SA, or TOTSA, the trading arm of Total. MAIN FACTS: -The alliance will open up new segments of the markets to both partners and will enable HSBC to offer energy-specific OTC derivative products to its clients; The alliance aims to deliver strong, sustainable and worldwide solutions starting with crude oil and petroleum products. -Discussions continue regarding the development of further energy products by the alliance. -Each partner will focus on its core expertise: deal origination and credit risk management for HSBC; and oil trading for TOTSA. -HSBC will benefit from TOTSA's experience in managing exposure to energy by combining physical infrastructure and risk management capabilities to deliver energy derivatives; HSBC will retain the relationship with its clients and the associated counter-party risks. -The alliance will be placed under the joint supervision of senior executives from the two companies. -HSBC and TOTSA expect to offer the first products in the next few months. -Shares of HSBC Holdings PLC (HSBA.LN) at 0956 GMT down 9.7 pence or 1.5%, at 645.3 pence, valuing the company at GBP11.36 billion. -By Tapan Panchal, Dow Jones Newswires. Tel +44(0)207-842 9448, [email protected] (END) Dow Jones Newswires July 23, 2010 05:59 ET (09:59 GMT)