HSBC, IBM use quantum computing to optimize bond trading
HSBC and IBM announced a trial in which IBM's Heron quantum processor augmented classical computing workflows to improve algorithmic bond‑price predictions, delivering a reported 34% improvement in trade‑fill likelihood estimates. The pilot focused on over‑the‑counter bond trading, with HSBC saying the result — called a 'world‑first' by the bank — could increase margins and liquidity and signals a potential near‑term commercial application of quantum computing in finance.
Finance
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HSBC uses quantum computing to achieve "world-first" in bond trading
New information:
- HSBC reported a 34% improvement in algorithmic bond price predictions when using IBM's Heron quantum processor alongside classical computing.
- The trial targeted OTC bond markets by estimating the probability a quoted trade would be filled, a routine task done thousands of times daily by algos.
- HSBC executives Philip Intallura and Josh Freeland provided quotes, and HSBC framed the test as the first empirical evidence that quantum computers can solve practical algorithmic bond‑trading problems.