Disciplinary fine of EUR 40,000 for HSBC for violating trade reporting obligations

Press release, September 3, 2007                                                

Disciplinary fine of EUR 40,000 for HSBC for violating trade reporting          
obligations                                                                     

The Disciplinary Committee of the OMX Nordic Exchange Helsinki has issued HSBC  
Bank plc with a disciplinary fine of EUR 40,000 for breaching the rules on trade
reporting.                                                                      

The OMX Nordic Exchange Helsinki (formerly the Helsinki Stock Exchange) was     
informed on May 15, 2007, that HSBC had not fulfilled its reporting obligations 
concerning an exceptionally large number of trades and shares of listed         
companies on the OMX Nordic Exchange Helsinki.                                  

HSBC had delivered a list of unreported transactions belonging to OMX Nordic    
Exchange in Copenhagen, Stockholm and Helsinki. Since the main part of these    
failures in reporting regarded the OMX Nordic Exchange Helsinki, the            
disciplinary case was handled by the OMX Nordic Exchange Helsinki.              

Statement                                                                       
HSBC admitted the breach of rules but stated that there was no intention to     
improperly influence the price structure. The failure in reporting occurred due 
to several factors, including human errors. HSBC has taken measures to prevent  
such breaches happening in the future.                                          

Disciplinary Committee consideration                                            
HSBC had informed the OMX Nordic Exchange Helsinki that it had failed to report 
manual trades on the Nordic Exchange in Helsinki, Stockholm and Copenhagen for a
period of several months. Unreported trades consisted of considerable trading   
volumes exceeding in many cases ten times the daily volume in the order book.   
The information concerning these trades was, as such, not available in a timely 
manner to market participants, to investors or the trading surveillance of      
exchanges.                                                                      

The main rule on reporting time states that manual trades must be reported      
immediately, however, no later than five minutes from the time of the trade.    
This rule promotes market transparency, providing market participants, investors
and market surveillance with essential information.                             

The Disciplinary Committee views transaction reporting as one of the central    
means of creating transparency in trading. Investors are entitled to expect that
all reportable trades are reported by the members according to the valid rules. 
Further, following rules on transaction reporting ensures a level playing field 
for all market participants.                                                    

The Disciplinary Committee states that there was no indication that the breaches
had the purpose of influencing the price structure. Despite this, it is the     
conclusion of the Committee that the breaches were severe due to the volumes of 
unreported trades and the systematic nature of failing to report them. The      
Committee considered that HSBC had seriously breached Norex Member Rule 5.6.1 by
not reporting manual trades in time.                                            

When considering a sanction it was taken into account that HSBC had been        
proactive in providing the exchanges with information on the unreported trades. 
HSBC has also described how its reporting processes will be enhanced in order to
prevent future failures. On the other hand, the Disciplinary Committee also took
into consideration that OMX Nordic Exchange Stockholm had already in 2006 issued
a written criticism to HSBC for failed trade reporting in connection to similar 
events.                                                                         

Decision                                                                        
The Disciplinary Committee issues HSBC Bank Plc with a warning and orders HSBC  
Bank plc to pay a fine to OMX Nordic Exchange Helsinki of an amount             
corresponding to EUR 40,000.                                                    

For further information, please contact:                                        
Timo Rintanen, Secretary of the Disciplinary Committee	+358 9 6166 7640        
Janne Seppänen, Head of Surveillance Helsinki	+358 9 6166 7382                 


OMX Nordic Exchange Helsinki donates its disciplinary fines to a foundation that
sponsors research related to securities markets in Finland and Sweden.          

Further information about the Disciplinary Committee and its members, as well as
the regulations of the Disciplinary Committee, are available on the OMX Nordic  
Exchange website at www.omxgroup.com/nordicexchange.                            

Surveillance of the OMX Nordic Exchange Helsinki                                
The surveillance unit of OMX Nordic Exchange Helsinki investigates all suspected
breaches of regulations. Minor breaches will result in written criticism of the 
company, whereas more serious cases are referred to the Disciplinary Committee. 
The members of the Disciplinary Committee are legal and financial experts       
independent of OMX Nordic Exchange Helsinki.  The Chairman of the Committee is  
Mr. Mikko Tulokas, Supreme Court Justice, and the members are Professor Risto   
Nuolimaa, Professor Kalervo Virtanen and Mr. Simo-Pekka Helander LL.M.