HSBC Bank has established a strategic alliance in energy trading with Total Oil Trading (TOTSA), the trading arm of Total.
HSBC and TOTSA have agreed the terms of the alliance, are finalizing the initial product suite and operational platform, and expect to offer the first products in the next few months, subject to any necessary regulatory approvals or authorizations.
The alliance is expected to open up new segments of the markets to both partners and will enable HSBC to offer energy-specific OTC derivative products to its clients.
The alliance aims to deliver sustainable and worldwide solutions starting with crude oil and petroleum products. Discussions continue regarding the development of further energy products by the alliance, said HSBC.
Each partner will focus on its core expertise: deal origination and credit risk management for HSBC; and oil trading for TOTSA. The alliance will be placed under the joint supervision of senior executives from the two companies.
Samir Assaf, head of global markets at HSBC, said: “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. The alliance will support their risk management, investment, and financing needs.”