HSBC taps Torchetti to drive broker-dealer outsourcing

Ex-Deutsche executive Nico Torchetti will develop services for HSBC’s burgeoning third-party agency clearing business.
HSBC taps Torchetti to drive broker-dealer outsourcing

HSBC Securities Services has named Nico Torchetti as head of product development for its global sub-custody and clearing unit, where he will focus on the bank’s burgeoning broker-dealer outsourcing business in the region.

He joins from Deutsche Bank, where he was the head of direct securities services, Hong Kong, and Asian head of broker-dealer coverage, where he oversaw the development and the launch of its third-party clearing capabilities.

At HSBC, Torchetti – a 15-year veteran of the securities and derivatives sector – is responsible for expanding the bank’s sub-custody and clearing service range, particularly for broker-dealer outsourcing. Based in Hong Kong, he reports to Colin Brooks, HSBC Securities Services’ global head of sub-custody and clearing.

Brooks notes that “having him on board will help us compete more aggressively in our rapidly expanding broker outsourcing franchise”.

In April, HSBC launched its agency clearing services in Australia for domestic and cross-border broker-dealers. The bank provides third-party clearing and settlement on local stock exchange trades on behalf of broker-dealers, who continue to handle trade execution, affirmation and confirmation of securities  

HSBC offers the service suite in Hong Kong, Singapore, India, the UK, Greece, Mexico and the United Arab Emirates. The service footprint will be expanded in more Asia-Pacific countries "as the markets permit", says the bank.

Broker-dealer outsourcing is a growing trend, with major custodial banks such as BNP Paribas and BNY Mellon – through its Pershing subsidiary – offering the service. It is particularly useful to newer, mid-tier and smaller broker dealers with limited back-office infrastructure.

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