New Issue: HSBC prices $2.1 million autocallable optimization securities linked to S&P 500

By Susanna Moon

Chicago, Feb. 17 - HSBC USA Inc. priced $2.1 million of 0% autocallable optimization securities with contingent protection due Aug. 18, 2010 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be automatically called if the index closes at or above its initial level on any of six quarterly observation dates. Investors will receive par of $10 plus an annualized return of 27.3% to the settlement date.

If the notes are not called, the payout at maturity will be par unless the index finishes below the trigger level - 80% of the initial level - in which case investors will be fully exposed to the index decline.

UBS Financial Services Inc. is the underwriter.

Issuer:	HSBC USA Inc.
Issue:	Autocallable optimization securities with contingent protection
Underlying index:	S&P 500 index
Amount:	$2,102,550
Maturity:	Aug. 18, 2010
Coupon:	0%
Price:	Par of $10.00
Payout at maturity:	If the index finishes below the trigger level, par minus the index decline; otherwise, par
Call:	Automatically if index closes at or above the initial level on an observation date; for each $10.00 note, payout will be $10.68 if called on May 12, $11.37 if called on Aug. 12, 2009, $12.05 if called on Nov. 12, 2009, $12.73 if called on Feb. 12, 2010, $13.41 if called on May 12, 2010 and $14.10 if called on Aug. 12, 2010
Initial index level:	835.19
Trigger level:	668.15, or 80% of initial level
Pricing date:	Feb. 12
Settlement date:	Feb. 18
Underwriter:	UBS Financial Services Inc.
Fees:	1.5%

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