HSBC searches for a new dealing base

IN THE wake of the takeover of Midland Bank and the merging of treasury operations, HSBC Holdings has joined the small band of companies looking for new premises in the City.

The dealing rooms of the two banks in Bishopsgate and Lower Thames Street are too small to house what will be the largest dealing operation of its kind in Britain, and possibly the second-largest in the world after the US bank Citicorp.

Bank treasuries handle professional dealings in areas such as foreign exchange, money and bond markets. The merger includes the two banks' dealing rooms in London, New York and Tokyo and Midland's capital markets and bond businesses.

Among the buildings being looked at are Alban Gate on London Wall and the Vintners Place development. HSBC is not considering a move to Docklands.

The treasury operations of the two banks will be combined from 1 August but the new dealing rooms are unlikely to be in operation until later in the year. The HSBC treasury will be considerably bigger than Barclays, currently the biggest in London.

HSBC appointed its own treasury chief, Stephen Green, to head the combined operation, with David Clark, Midland's current head of treasury, working for him as treasurer for Europe.