New Issue: HSBC sells $8.14 million knock-out buffer notes linked to S&P 500 via JPMorgan

By Jennifer Chiou

New York, Feb. 17 - HSBC USA Inc. priced $8.14 million of 0% knock-out buffer notes due Aug. 25, 2011 linked to the S&P 500 index, according to a 424B2 with the Securities and Exchange Commission.

A knock-out event occurs if the index falls by more than the buffer amount of 15% during the life of the notes.

If a knock-out event occurs, the payout at maturity will be par plus the index return. Investors will be exposed to any losses.

If a knock-out event does not occur, the payout will be par plus the index return, with a floor of 3.3%, the contingent minimum return.

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

Issuer:	HSBC USA Inc.
Issue:	Knock-out buffer notes
Underlying index:	S&P 500
Amount:	$8,137,000
Maturity:	Aug. 25, 2011
Coupon:	0%
Price:	Par
Payout at maturity:	If index falls below 85% of initial level during life of notes, par plus basket return; otherwise, par plus basket return, with floor of 3.3%, the contingent minimum return
Initial level:	1,109.17
Pricing date:	Feb. 19
Settlement date:	Feb. 24
Agent:	J.P. Morgan Securities Inc.
Fees:	1.25%
Cusip:	4042K0Q99

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