Global Markets Trading

Fx Trading

FX Trading manages the overall exposure emanating from the bank`s activity in the FX markets, including Spot, Ready, Forwards and Swaps. . The desk acts as a market-maker to the Treasury Sales desk, allowing Sales to offer competitive pricing to the Bank`s customers. The desk also acts as a leading market-maker in the FX markets to other banks. While USD/PKR is the primary currency pair in the Pakistan market, the Desk also provides execution in a wide range of currencies, including EUR, CNY/CNH, GBP, JPY, CHF as well as many others The desk proactively manages exposures in the FX ready/spot and swap/forward markets with a view to capitalize on market moves.

The FX Desk distributes prices via traditional channels (telephone, Reuters and Bloomberg) as well as maintaining and pricing on HBL Infinity®, the Bank`s Electronic Trading Platform, the first platform to offer pricing in PKR as well as the first to offer a digital solution to clients n the Pakistan market. Infinity® is used by over 300 clients as well as several banks, who appreciate the efficiency of using a digital channel for FX execution.

Rates Trading

Rates Trading is primarily mandated to trade in interest rate risk markets associated with fixed-income investments (primarily in government securities) and certain interest rate derivative products. The fixed-Income Trading business primarily caters to trading in PKR-denominated fixed-income securities issued by the Government of Pakistan. The business actively manages the trading book in securities, with a view to distributing them to corporate, retail and institutional clients. It also acts as the bank`s face to the domestic sovereign fixed-income market and as a market-maker of the same to the interbank clients. It provides the bank`s corporate clientele access to the domestic sovereign fixed-income assets through the Treasury Sales business and is also a joint custodian of the Primary Dealership (`PD`) license with ALM and Sales businesses. Derivatives Trading primarily caters to derivatives pricing and warehousing in Rates and FX, including the management of linear interest rate risk associated with Interest Rate Swaps (“IRS”) and Cross Currency Swaps (`IRS`) and non-linear risk associated with FX Options. Management of the market risk associated with Derivatives falls under its ambit. The business provides access to and pricing for structured products to end-users for their hedging needs by working closely with Structuring and Treasury Sales teams. Such products may include, but are not limited to, FX Options, Cross Currency Basis Swaps, Interest Rate Swaps and Forward Rate Agreements or as allowed under the bank’s own policy and regulatory guidelines. It is also the joint custodian of the Authorized Derivatives Dealer (`ADD`) license with the Structured Products and Sales businesses.

The Rates Desk maintains pricing and execution on HBL Symphony®, the Bank`s unique digital platform which is the only channel in the market to provide live, streaming prices in fixed income securities, as well as a host of other features.

e-Trading Solutions

The e-Trading Solutions desk is a focal element within Treasury & Global Markets, focused primarily on leveraging technology and bringing digital solutions for both internal and external stakeholders. This desk is responsible for executing the core strategies of HBL by digitizing processes and products offered by the treasury space for both domestic and international clients. The launch of HBL Infinity® was a pioneering development in the domestic financial market. Furthermore, HBL also launched its first online Fixed Income trading platform, HBL Symphony® to execute transaction in GoP securities. Through new developments and consistent upgrades, the e-Trading Solutions desk intends to ensure that HBL paves and leads the digital space thereby embedding transparency and ease of doing business for our valued customers.

Treasury Sales & Structured Products

Treasury Sales at HBL liaises with clients for their Treasury needs, including Foreign Exchange, Liquidity & Investments and Derivatives. We are located in 3 offices Karachi, Lahore & Islamabad giving us direct access and coverage to all our client segments across the country. Markets are constantly evolving and frequently volatile. Our trained and qualified Sales personnel work closely with our clients to formulate their hedging strategies and transactional requirements.

The Bank has led the way in bringing value addition to Corporate and Commercial clients in Pakistan, including HBL Infinity®, Pakistan`s first FX trading & execution portal for corporates and institutions. This has helped our valued clients keep track of exchange rates in fast-moving markets, and to execute their transactions in a quick and secure manner.

Additionally, the Bank has launched HBL Symphony®, which is a unique digital channel for fixed income securities, providing our clients with a comprehensive solution for executing and managing their fixed income portfolios. The portal is the only one to offer live, streaming prices in securities, as well as allowing clients to enter bids in the auction, and to access research and up-to-date news and research.

The Structured Products Desk offers risk management solutions to clients and counterparties of the bank. The Structured Products Desk is tasked with managing, designing and launching products that make use of derivatives to create a specific set of risk-return profiles for clients. Structured Products not only supports the local client-facing businesses but is also actively developing a suite of products for our foreign branches so that our customers across the network are able to acquire hedges for their existing risk or participate in return profiles that are suited to their risk appetite.

Equities & Research

The Equities Desk is responsible for managing the trading and long-term equity investment book of HBL (other than Strategic Investments). The Bank generally looks to buy and hold blue-chip stocks over the course of time to generate capital gains and receive consistent dividend stream.

The Research Desk is responsible for carrying out macro-economic research and other equity investment related research for internal use of the Bank. The Research team provides in-depth coverage of key macro-economic variables which include inflation, interest rate forecast, fiscal and monetary stance which is used by internal as well as external clients. Moreover, the Research desk liaisons with different research houses to analyze external research publications and in turn assists the Equities Desk in portfolio management.

International Treasuries

HBL is currently present in 12 locations outside Pakistan. As part of the strategy and focus on the International Businesses, HBL has implemented a matrix organizational structure whereby the Treasuries in the international locations report into the International Treasury desk in H.O. The objectives of this structure are to ensure that the desired support is available to the international locations from HBL head office and to allow the International Treasury network to benefit from the breath and depth of cumulative experience at the head office. Acting as a hub for overseas treasuries, International Treasury governs and supervises both liquidity and treasury activities undertaken at HBL`s international locations and subsidiaries. International Treasury also serves the international locations with new products and initiatives that can be integrated in different business environments.

Islamic Treasury

Islamic Treasury provides access to Shariah compliant Treasury products, as approved by the bank`s Shariah Board. It is responsible for Asset and Liability Management of the Islamic Banking balance sheet, ensuring that the liquidity of the bank is effectively utilized through Shariah compliant products. Islamic Treasury acts as the front-end executor for money market and fixed income (Sukuks) transactions. Further, the branch provides Shariah compliant FX solutions to HBL`s customers. The Money Market and FX Sales Desk deals in all related local and foreign currency products duly approved by the Shari Board including but not limited to:

• Musharaka based Acceptance/Placement
• Mudarabah based Acceptance/Placement
• Wakalah-based Acceptance/Placement
• Bai Muajjal, FX-Ready, FX Wa`ad - A unilateral promise (an alternate to conventional forward cover transactions)
• Salam - An alternate to conventional foreign bill discounting.