LONDON (Reuters) -Europe’s biggest bank HSBC said on Thursday that a trial use of quantum computers to aid bond trading had produced promising results, in a rare example of a major finance company finding early benefits from the emerging technology. HSBC said its quantum computing pilot – run with technology firm IBM – had delivered […]
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HSBC says quantum computing trial helps bond trading
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LONDON (Reuters) -Europe’s biggest bank HSBC said on Thursday that a trial use of quantum computers to aid bond trading had produced promising results, in a rare example of a major finance company finding early benefits from the emerging technology.
HSBC said its quantum computing pilot – run with technology firm IBM – had delivered a 34% improvement in predicting how likely a bond trade would be filled at a quoted price, giving it a competitive edge compared to normal computing.
Quantum computing aims to leverage quantum physics to solve complex problems much faster than conventional computers. Its backers say it could transform industries including finance, but it is early days and has few practical applications so far.
The quantum technology market could be worth up to $100 billion within a decade, largely driven by growth in quantum computing which generated just $4 billion in revenue last year, consultancy McKinsey said in a report in June.
HSBC’s trial with IBM combined quantum and classical computing to help it price trades in the European corporate bond market. Computer algorithms are used to quickly and automatically price client enquiries in a competitive bidding process, factoring in real-time market conditions and risk estimates, HSBC said.
“It means we now have a tangible example of how today’s quantum computers could solve a real-world business problem at scale,” said Philip Intallura, HSBC’s group head of quantum technologies.
(Reporting by Iain WithersEditing by Mark Potter)