HSBC USA Inc. Announces Redemption of ELEMENTS℠ Exchange-Traded Notes

HSBC USA Inc. (“HSBC”) is announcing the redemption of all of the ELEMENTSSM exchange-traded notes linked to the S&P Commodity Trends Indicator – Total Return due June 16, 2023 (“ETNs”).

The ETNs are listed on the NYSE Arca (ticker symbol: LSC). There are currently less than $5,000,000 aggregate principal amount outstanding of the ETNs. Under the terms of the ETNs and the Indenture between HSBC and Deutsche Bank Trust Company Americas dated as of March 31, 2006, HSBC will redeem all of the ETNs on September 19, 2016 (the “Redemption Date”).

HSBC expects to provide notice of redemption via The Depository Trust Company on September 13, 2016. The Redemption Price to be paid to holders of the ETNs will be their daily repurchase value on September 14, 2016, the Valuation Date, as those terms are defined in the Pricing Supplement dated March 5, 2015 to the Prospectus dated March 5, 2015. The Redemption Price will be paid to the holders on the Redemption Date, which is expected to be the third business day after the Valuation Date. The last trading day for the ETNs is expected to be September 16, 2016. Daily creations of the ETNs will be suspended immediately. Daily repurchases at the option of holders will be accepted in the normal manner up to and including September 13, 2016.

Beginning on the Redemption Date, the ETNs will no longer be considered outstanding.

Notes to editors:

HSBC USA Inc. ("HUSI") is a Maryland corporation and its principal business is to act as a holding company for its subsidiaries including HSBC Bank USA, N.A. Through HSBC Bank USA, N.A. and its subsidiaries, HUSI offers a full range of traditional banking products and services to individuals, including high net worth individuals, small businesses, corporations, institutions and governments. HSBC USA Inc. is an indirect wholly-owned subsidiary of HSBC North America Holdings Inc.

Certain statements in this press release are "forward-looking statements" within the meaning of the rules and regulations of the U.S. Securities and Exchange Commission. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results and capital and other financial condition may differ materially from those included in these statements due to a variety of factors, including without limitation the factors contained in HSBC USA Inc.’s filings with the U.S. Securities and Exchange Commission, including without limitation the "Risk Factors" section of HSBC USA Inc.’s 2015 Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the period ended June 30, 2016. Precautionary statements included in such filings should be read in conjunction with this release.

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