HSBC continues to develop its market-leading franchise in global non-deliverable forwards (NDF). With operations now spanning 25 key NDF jurisdictions, including Brazil, Taiwan and Korea, coupled with a sales presence in nearly 50 locations and dedicated e-FX sales teams, HSBC provides clients with market colour in local market dynamics.
HSBC provides deep NDF liquidity by size and tenor, including a broad offering of many more esoteric NDF currencies such as EGP and NGN.
Automation has been a key driver of HSBC’s strategy. In one notable example, the bank automated the hedging of Brazilian real (BRL) NDFs via the futures market, resulting in a 37% compression of spreads since December 2023. The efficiency gains from automation also allowed the bank to focus on larger client requests and explore further automation opportunities for Latin American currencies such as the Chilean and Colombian peso.
In the past 12 months, HSBC has added multiple additional sources of liquidity for NDF currencies.