Dodd Frank Act – External Business Conduct

Global Regulation

It is important to us that you understand everything you need to know about a swap transaction before entering into an agreement with us.

The following documentation and links contain important information that you should read and understand about swap products which HSBC Bank plc or HSBC Bank USA, NA ("HSBC") may make available to you and which align with industry standards.

HSBC is obliged to provide you this information as a result of its ongoing commitment to work with international regulators to create safer swap markets.

By viewing the information on this website, you agree to be bound by the following obligations and limitations.

Where this refers to "we" or "HSBC" it refers to the relevant HSBC entity with which you are transacting (HSBC Bank USA, NA or HSBC Bank plc as applicable) and where this refers to "you" it refers to you or your organisation.

Before transacting with a HSBC Swap Dealer entity, counterparties should adhere to the ISDA Dodd-Frank Protocols or adhere via a bilateral agreement. For counterparties that do not adhere to the ISDA Dodd-Frank Protocols or do not have a bilateral agreement in place, the required representations should be provided within the relationship documentation during the counterparty onboarding process.

By entering into a swap with HSBC you acknowledge that we have provided, on a pre-trade basis, the required disclosures pursuant to CFTC Regulations. The following disclosures are required, but not limited to;

(i) the material risks of the swap, including market, credit, liquidity, foreign currency, legal, operational and other applicable risks;
(ii) the material characteristics of the swap, including all material economic terms, operational terms, and the rights and obligations of the parties during the term of the swap, and;
(iii) the material incentives and conflicts of interest that may apply with respect to the swap.

Further information is available on the Material Risk Disclosures page.

With respect to Scenario Analysis, we hereby notify you that prior to entering into a swap transaction you have the right to request scenario analysis. Scenario analysis may help you assess potential exposure in connection with the swap transaction. If you wish to receive scenario analysis, please contact your relevant Sales person. Note: Scenario Analysis is unavailable when trading on a designated contract market or swap execution facility.

HSBC is not responsible for providing you with legal, tax or other specialist advice and you should make your own arrangements in respect of this accordingly.


Last updated: 18 January 2019