HSBC’s securities services operation in Asia is a powerful force: it has consistently ensured it has a comprehensive product suite, a diverse client base and top-notch execution capabilities. That combination only strengthened in 2024, making HSBC Euromoney’s best bank for securities services in Asia.
The bank’s focus has been on leveraging its position in Asia, the Middle East and North Africa, offering end-to-end client-centric solutions from execution to post-trade settlement, and digitising at scale. Within securities services, these are emphasised across its direct custody and clearing operations; global custody, agency lending and liquidity service; and funds and depositary services.
“Securities services at HSBC sits with the markets business, so it gives us access to a wide array of products to serve clients, making us a one-stop shop,” says Suvir Loomba, HSBC’s Asia head of securities services.
He adds that the fact HSBC has two homes, in Hong Kong and the UK, gives it an edge, allowing it to attract both western clients investing into Asia and Asian clients looking to invest within Asia, or in the Middle East and Europe.
This means its client base is vast. HSBC services asset owners, asset managers, banks, broker dealers and private banks across markets.
A few things stood out last year. HSBC brandished its technology credentials by deploying artificial intelligence solutions to its markets business and for post-trade dealing. Its proprietary HSBC Orion digital assets platform was also used by the Hong Kong government for its HK$6 billion ($764 million) equivalent digital green bonds in February 2024 – hailed as the world’s first multi-currency digital bonds and the city’s first digitally native bond.
The results are clear. HSBC is among the largest providers of direct custody and clearing services in many of the Asian markets
Another highlight was the work HSBC did to help clients navigate a shortening of settlement cycles across numerous jurisdictions, as well as adapt to changes in the regulatory environment.
On the custody front, HSBC strives to offer the best services for its customers – and holds a market-leading position in custodian services in markets where it operates.
“This makes us strongly committed to the regulatory change agenda, supporting not only market development but also some of the technology change agenda that the market is following,” says Loomba.
The results are clear. HSBC is among the largest providers of direct custody and clearing services in many of the Asian markets, while its fund administration services too have gained significant clout over the years.
Another key ingredient to HSBC’s success is being selective. Loomba says the securities services team works with major international clients as well as multi-jurisdictional and regional clients. The bank also helps single-market domestic clients scale and offers multiple products like foreign exchange, collateral management or custodian services.
On products, HSBC is selective on digital assets: it is open to tokenisation and digital bonds as these are supported by regulatory enablement, but less comfortable dealing with riskier products like crypto, says Loomba. It’s this fine balance that has put HSBC at the top.
