External Business Conduct - Metals

The links (if any) for the selected Product Type and HSBC Entity below contain market standard material terms (as supplemented by the relevant Reference Documents) for the relevant swaps referred to under "Product Type" below ("Static Terms"). The relevant Static Terms will be supplemented by transaction-specific material terms to be communicated to you prior to trading ("Transactional Terms" and together with the Static Terms, the "Terms"). The Transactional Terms may amend the Static Terms, as notified by us. The Terms are intended to relate primarily to the requirements of the Commodity Futures Trading Commission.

Commodity Swap - Static Material Economic Terms

A cash-settled forward contract typically transacted in a Metal (Gold, Silver, Platinum or Palladium), where the profit or loss at the time of settlement date is calculated by taking the difference between the fixed price and the market price at the time of settlement, for an agreed upon notional amount of Metal.

Unless otherwise specified the market price is established based on a reference price typically referred to as the "London Metal Fixing" [Gold, Silver, Platinum and Palladium].

For all other static terms to the transaction, HSBC adheres to standard market practice typically referred to as "Good Delivery" as defined by the London Platinum and Palladium Market for Platinum and the London Bullion Market Association for Gold and Silver.

Last updated: 09 December 2014