HSBC and IBM Unveil Quantum Improvement in Bond Trading Predictions

London, United Kingdom — HSBC today announced a significant breakthrough alongside IBM in algorithmic bond trading, showcasing the first empirical evidence of quantum computers solving real-world financial problems. The companies reported a 34 percent improvement in predicting trade success using a combination of quantum and classical computing resources.

This innovative trial utilized IBM’s Heron quantum processors and calculated the probability of bond trades being fulfilled at quoted prices in the European corporate bond market. Traditionally, algorithmic trading relies solely on classical computing to analyze bids in real-time market conditions. However, the complexity of these factors presented an opportunity for quantum computing capabilities to demonstrate a clear advantage.

Philip Intallura, HSBC’s Group Head of Quantum Technologies, emphasized that this marks a “ground-breaking world-first in bond trading.” He elaborated, saying, “We have great confidence we are on the cusp of a new frontier of computing in financial services.” The trial also validated real, production-scale trading data on multiple IBM quantum computers, highlighting the technology’s potential for immediate business applications.

Jay Gambetta, Vice President at IBM Quantum, stated that this collaboration embodies the results of integrating deep domain expertise with algorithmic research, allowing unique insights into market behavior. “Such work is essential to unlock new algorithms and applications poised to transform industries as quantum computers scale,” he added.

Quantum computing leverages the principles of quantum mechanics, offering exponentially more extensive computational resources compared to classical systems. This positioning allows quantum systems to tackle challenges that exceed the inferences that can be achieved by even powerful classical supercomputers.

IBM’s quantum technology is already accessible via cloud platforms and the open-source Qiskit software stack, ensuring enterprises can access these capabilities promptly. This positions IBM to meet the growing demand in the financial sector for advanced quantum solutions.

The trial results indicate that quantum computing could not only enhance the accuracy of trading predictions but also drive innovative solutions within the financial services industry. The implications of this partnership could pave the way for future advancements in quantum computing and algorithmic trading.