HSBC is considering outsourcing some of its fixed income trading order flow to a third-party firm, according to Bloomberg News. While the bank will continue to manage customer relationships, it plans to outsource background processes such as technology, analytics, and order execution.

These discussions are still in the early stages and may not lead to a final agreement. HSBC is exploring partnerships with firms including Citadel Securities and Jane Street Group.

Both HSBC and Citadel Securities declined to comment, while Jane Street Group has not yet responded to requests for comment.

This potential arrangement coincides with a broader restructuring of HSBC's operations under new CEO Georges Elhedery. Since July, Elhedery has made significant cuts, including hundreds of senior positions, reduced deal-making teams in the West, and reorganized operational units to reduce costs and refocus the bank's extensive business. 

The move reflects a trend where traditional banks are increasingly losing ground in certain trading sectors to dedicated non-bank market makers that can invest more heavily in technology.