HSBC reports ‘promising trial’ with IBM of quantum-enabled algorithmic trading

HSBC (HSBC) announced what it calls “the world’s first-known empirical evidence” of the potential value of current quantum computers for solving real-world problems in algorithmic bond trading. Working with a team from IBM (IBM), HSBC leveraged an approach that utilized quantum and classical computing resources to deliver up to a 34% improvement in predicting how likely a trade would be filled at a quoted price, compared to common classical techniques used in the industry, the bank stated. Jay Gambetta, Vice President IBM Quantum, said: “This exciting exploration shows what becomes possible when deep domain expertise is integrated with cutting-edge algorithm research, and the strengths of classical approaches are combined with the rich computational space offered by quantum computers. Such work is essential to unlock new algorithms and applications that are poised to transform industries as quantum computers scale, and the future of computing takes shape.”