New Issue: HSBC sells $2.84 million semiannual review notes linked to S&P 500 index via JPMorgan

By Susanna Moon

Chicago, Dec. 23 - HSBC USA Inc. priced $2.84 million of 0% semiannual review notes due Dec. 23, 2010 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

J.P. Morgan Securities Inc. is the agent.

The notes will be automatically called at par plus an annualized return of 14.6% if the index closes at or above its call level, which is 80% of the initial index level on Dec. 28, 2009 and 100% of the initial level on June 21, 2010 and Dec. 20, 2010.

If the notes are not called, payout at maturity will be par unless the index falls by more than 20%, in which case investors will lose 1.25% for every 1% decline beyond 20%.

Issuer:	HSBC USA Inc.
Issue:	Semiannual review notes
Underlying index:	S&P 500 index
Amount:	$2.84 million
Maturity:	Dec. 23, 2010
Coupon:	0%
Price:	Par
Call:	Automatically at par plus annualized return of 14.6% if index closes at or above call level on any valuation date; call level is 80% on Dec. 28, 2009 and 100% on June 21, 2010 and Dec. 20, 2010
Payout at maturity:	Par unless index falls by more than 20%, in which case 1.25% loss for every 1% decline beyond 20%
Initial index level:	887.88
Index barrier:	710.30, or 80% of initial level
Pricing date:	Dec. 19
Settlement date:	Dec. 24
Agent:	J.P. Morgan Securities Inc.
Fees:	1.5%

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