"Quantum computing's potential remains mostly theoretical, with many breakthroughs demonstrated under controlled conditions rather than in real-world trading. So far, these have largely been proofs of concept, showing promise without widespread practical application. Quantum chips take advantage of subatomic, quantum-level "uncertainty" that allows them to process multiple tasks in parallel. Traditional analog chips process tasks sequentially, and are thus far slower. Quantum computing can solve problems in minutes; analog chips would take hours, days or years to process the same calculations."
"HSBC and IBM's results were also derived from historical data rather than live trades, but the study does indicate that quantum computing could be useful for real-life markets. The trial was in collaboration with IBM and its Heron chip-the company's latest and highest-performing quantum processor. It analyzed more than 1 million quote requests across 5,000 corporate bonds between September 2023 and October 2024."
HSBC and IBM ran an experimental trial using IBM's Heron quantum processor to predict bond trade fills, analyzing over 1 million quote requests across 5,000 corporate bonds from September 2023 to October 2024. The quantum-enabled model achieved a 34% improvement in predicting whether a customer order would be filled at a quoted price compared with standard classical techniques. The trial used historical data rather than live trades. The results suggest quantum processors can outperform classical methods in over-the-counter bond markets where small predictive gains yield competitive advantages. Quantum chips leverage subatomic uncertainty to process tasks in parallel, enabling faster solutions.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]