Press Release

HSBC Subsidiary Moves to Self Clearing

12 September 2003

HSBC Brokerage (USA) Inc., a subsidiary of HSBC Bank USA, today announced that it will move to self-clearing of trades, which the organization anticipates will result in faster, more efficient service for clients as well as additional transaction capabilities. Under this arrangement, HSBC Brokerage will assume direct responsibility for the execution and settlement of securities transactions, custody of securities and cash balances, and the extension of credit on margin transactions.

"Our move to self-clearing demonstrates the tremendous commitment HSBC has made to building our brokerage business," said Greg Webster, President, HSBC Brokerage (USA) Inc. "Self-clearing will gives us better control over our business and will help to keep transaction costs as low as possible." Webster noted that additional customer benefits will include an ability to conduct trades in multiple currencies and obtain margin-lending privileges directly through the firm.

As part of this move, Automatic Data Processing, a global processing solution service bureau, has been selected to handle processing of trades. HSBC Brokerage will also begin utilizing a technology platform, including the Online Trading Web site, developed by HSBCs North America Retail Securities IT group. This will result in a number of new features that clients can customize to track stocks, mutual funds, and currencies. Clients will also have access to their full account history through the site and have enhanced trading capabilities.