Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 202

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 202
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 a full IDI Plan is due on 1 July 2026. The OCC also recently finalized revisions to its recovery planning guidelines, which included lowering the threshold of banks to which it applies from $250bn to $100bn average total consolidated assets. HSBC Bank USA now becomes subject to these requirements and must comply with most aspects of the revised rule by 1 January 2026. The FRB has separately established a framework for recovery plans, although HSBC is not currently required to submit a recovery plan to US regulators unless specifically requested to do so. The FRB limits credit exposures to single counterparties for large BHCs and IHCs. As a Category IV firm, HNAH is not directly subject to these single counterparty credit limits. Independent of HNAH‘s classification as a Category IV firm, HNAH, together with its subsidiaries, could become subject to limits on its exposures to unaffiliated counterparties if its parent, HSBC, cannot certify its compliance with a large exposure regime in the UK that is consistent with the Basel large exposure framework. Pursuant to Title VII of the Dodd-Frank Act (‘Title VII’), the SEC and CFTC have adopted extensive requirements to regulate over-the- counter (‘OTC’) derivatives, including, among other requirements, registration for swap dealers, major swap participants, security-based swap (‘SBS’) dealer and major SBS participants, mandatory clearing and trade execution of certain OTC derivatives, position limits for certain physical positions and economically equivalent swaps, real- time public and regulatory trade reporting, business conduct, enhanced documentation, supervision, recordkeeping, and financial reporting requirements. HSBC Bank USA and HSBC Bank plc are registered as swap dealers with the CFTC and registered as SBS dealers with the SEC. Because it is a non-US dealer, HSBC Bank plc is only subject to certain of the CFTC’s requirements in respect of swap transactions with US persons and certain persons guaranteed by or affiliated with US persons, and only subject to certain of the SEC’s requirements in respect of SBS transactions with US persons or which are arranged, negotiated, or executed by US personnel. HSBC Bank plc is also permitted to satisfy certain CFTC requirements and SEC requirements through ‘substituted compliance’ pursuant to relevant determinations and related relief issued by the SEC and the CFTC. Pursuant to Title VII, the US prudential regulators adopted margin requirements for non-cleared swaps and SBS for prudentially regulated swap dealers