HSBC to sell enhanced market participation notes linked to Financial Select Sector SPDR

By Susanna Moon

Chicago, April 17 - HSBC USA Inc. plans to price 0% enhanced market participation notes with contingent protection due June 14, 2010 linked to the Financial Select Sector SPDR fund, according to an FWP filing with the Securities and Exchange Commission.

The payout at maturity will be par plus double any gain in the fund's share price, up to a maximum return of about 50%. The exact cap will be set at pricing.

Investors will receive par if the fund falls by up to 20% and will lose 1% for each 1% decline beyond 20%.

The notes are expected to price on May 7 and settle on May 12.

HSBC Securities (USA) Inc. will be the agent.

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