Posted By Global Banking and Finance Review
Posted on March 24, 2025
LONDON (Reuters) - HSBC is considering outsourcing some of its fixed income trading order flow to a third-party firm, Bloomberg News reported on Monday, citing sources familiar with the matter.
The bank would continue to deal with its customers but would outsource some of the background processes such as technology, analytics and order execution, the Bloomberg report said.
The deliberations within HSBC are at an early stage and could fail to result in a deal, the report added.
The British bank is open to a deal with firms including Citadel Securities and Jane Street Group, Bloomberg said.
HSBC and Citadel Securities declined to comment to Reuters, while Jane Street Group did not immediately respond to a request for comment.
The potential deal comes amid a wider restructuring of HSBC's businesses under new CEO Georges Elhedery.
Since his appointment last July, Elhedery has already slashed hundreds of senior jobs at the Asia-focused bank, cut back its deals teams in the West and reorganised its operating units in a bid to cut costs and restore focus to its sprawling business.
The possible arrangement also underlines how banks are increasingly losing business in some trading areas to dedicated non-bank market makers willing or able to invest more heavily in technology.
(Reporting by Lawrence White; Editing by Joe Bavier)
