HSBC Weighs Outsourcing Some Trading Operations to Lift Returns

HSBC Holdings Plc is considering outsourcing part of its sprawling trading business as executives struggle to justify making technology investments needed to keep up with larger rivals.

Europe’s largest lender has held preliminary discussions about directing parts of its fixed income trading order flow to an outside market maker, according to people familiar with the matter. The moves would allow HSBC to save millions of dollars in IT costs associated with running trading desks around the globe, two of the people said.

HSBC CEO Georges Elhedery.

Photographer: Paul Yeung/Bloomberg

HSBC is open to a deal with firms including Citadel Securities and Jane Street Group, the ...