HSBC weighs outsourcing some trading business to cut costs – Bloomberg

Investing.com-- HSBC Holdings PLC (LON:HSBA) is considering outsourcing parts of its fixed-income trading operations as it grapples with the rising costs of technology investments needed to compete with larger rivals, Bloomberg reported on Monday citing sources familiar with the matter.

Europe’s largest bank has held preliminary talks with market makers, including Citadel Securities and Jane Street Group, about directing portions of its trading order flow to external firms, Bloomberg reported.

The move could save HSBC millions in IT costs tied to its global trading operations, though discussions remain at an early stage, the report said.

HSBC’s willingness to explore such a deal highlights the challenges even major banks face in keeping up with tech-driven trading giants.

While the lender seeks cost efficiencies, it also risks ceding market share in key areas, Bloomberg noted.

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