HSBC Holdings Regulatory News (HSBA)

5 Jun 2006 09:59

HSBC Holdings PLC05 June 2006 HSBC SELLS AUSTRALIAN ONLINE STOCKBROKING BUSINESS TO E\* TRADE HSBC has entered into an agreement to sell its Australian onlinestockbroking business, HSBC Stockbroking (Australia) Pty Limited, toETRADE Australia Limited (ASX: ETR, www.etrade.com.au) for aconsideration of approximately A$51 million (approximately US$38.5million). HSBC Stockbroking is a non-advisory, online trading and settlementservices business, covering equities, warrants and options, and alsoprovides online managed funds and international share trading in 14overseas markets. E\* TRADE, the second largest online broker in Australia, provides anaward winning online trading service to retail investors includingequities, options and CFDs (contracts for difference). The company alsoprovides trade execution and settlement services to intermediary andinstitutional clients. Stuart Davis, Chief Executive Officer of HSBC Bank in Australia, said:"We recently conducted a strategic review of our Australian stockbrokingbusiness. We firmly believe that the online broking industry willcontinue to consolidate and that the investment in technology requiredto remain competitive is likely to increase significantly. "While we have steadily increased our customer base over time, E\* TRADE'sinterest in acquiring the business and entering into an ongoingstrategic alliance presented us with an attractive offer. Their level ofcommitment ensures our 40,000 customers will continue to have access toa first class broking service. "Our strategy for growth in Australia places a strong emphasis on makingfull use of the HSBC Group's strengths and participating in marketopportunities where we have a strong comparative advantage. For ourretail banking customers, this includes our new consumer financeinitiative and, for our corporate customers, initiatives in areas suchas project finance, trade finance, debt capital markets and payments andcash management." Notes to editors:1. HSBC Holdings plcHSBC Holdings plc is headquartered in the UK. The HSBC Group serves over125 million customers worldwide from more than 9,500 offices in 76 countriesand territories in Europe, the Asia-Pacific region, the Americas, theMiddle East and Africa. With assets of US$1,502 billion at 31 December 2005, HSBC is one of the world's largest banking and financial services organisations.HSBC is marketed worldwide as 'the world's local bank'. Further information can be found at www.hsbc.com 2. HSBC in AustraliaIn Australia, the HSBC Group offers an extensive range of financial services through a network of 35 branches and offices. These services include personal and commercial financial services, trade finance, treasury and financial markets, financial planning and securities custody. Principal HSBC Group membersoperating in Australia include HSBC Bank Australia Limited, HSBC Precious Metals (Australia) Limited and HSBC Bank plc. Further information can be found at www.hsbc.com.au 3. E\* TRADEE\* TRADE Australia offers independent investors the convenience and control of automated securities order placement, along with a suite of value-added products and services that can be personalised, including portfolio tracking, charting and quote applications, real-time company announcements, news and other information services. E\* TRADE Australia does not provide investment advice to online retail customers. Further information can be found at www.etrade.com.au This information is provided by RNS The company news service from the London Stock Exchange