HSBC Midland Ceases NY Interbank Trading, Raising Questions About The Centre's Future

BANKS

In a move that caught the market off-guard, HSBC Midland abruptly closed its interbank FX trading operation in New York last week, cutting 25 traders, while starting a late shift in London. The bank's unexpected decision could have wide-ranging effects on the New York market, say industry participants, and could be a catalyst for a string of similar moves by smaller foreign and niche players operating in North America.

In addition to the two dozen traders let go, which includes FX trading man