New Issue: HSBC prices $11.73 million autocallable optimization securities on Market Vectors Gold ETF

By Jennifer Chiou

New York, Oct. 29 - HSBC USA Inc. priced $11.73 million of 0% autocallable optimization securities with contingent protection due Nov. 1, 2011 linked to the Market Vectors Gold Miners exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

If the fund closes above its initial share price on any of 12 monthly observation dates, the notes will be called and investors will receive par of $10 plus an annualized return of 18.25%.

The payout at maturity will be par if the fund finishes at or above 80% of the initial price. Otherwise, investors will receive par plus the share price return.

UBS Financial Services Inc. and HSBC USA Inc. are the underwriters.

Issuer:	HSBC USA Inc.
Issue:	Autocallable optimization securities with contingent protection
Underlying fund:	Market Vectors Gold Miners ETF
Amount:	$11,728,850
Maturity:	Nov. 1, 2011
Coupon:	0%
Price:	Par of $10.00
Payout at maturity:	If the fund finishes at or above trigger price, par; otherwise, par plus return
Call:	At par plus annualized call premium of 18.25% if fund closes at or above initial price on any of 12 monthly observation dates
Initial price:	$54.70
Trigger price:	$43.76, 80% of initial share price
Pricing date:	Oct. 27
Settlement date:	Oct. 29
Underwriters:	UBS Financial Services Inc. and HSBC USA Inc.
Fees:	1.25%
Cusip:	40432R476

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