HSBC: Forms Energy Trading Alliance With Total Oil Trading

23rd Jul 2010 11:15

LONDON (Dow Jones)--HSBC Bank PLC (HBC) Friday said it had formed a partnership in energy trading with Total Oil Trading SA, or Totsa, the trading arm of French oil major Total SA (TOT). The partnership will enable HSBC to offer over-the-counter energy derivatives to its clients, HSBC said. Under the agreement, HSBC will focus on deal origination and credit risk management, while Totsa will focus on oil trading. "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 said in a statement. "HSBC will retain the relationship with its clients and the associated counterparty risks." "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," said Samir Assaf, head of global markets at HSBC. The alliance will be jointly supervised by senior executives from both companies. The first products from the alliance are expected to be offered in several months. -By Lananh Nguyen, Dow Jones Newswires; +44 (0)20-7842-9479; [email protected] (Andrea Hotter in London contributed to this report.) (END) Dow Jones Newswires July 23, 2010 06:15 ET (10:15 GMT)