HSBC collaborates on noisy qubit real-world application | Computer Weekly

""By developing methods to efficiently work with Lévy distributions on a quantum computer, we pave the way for more precise modeling of market behaviours, particularly in capturing heavy tails, skewness and volatility clustering.""

""Quantum computing can be used in derivative pricing, portfolio optimisation, fraud detection and machine learning, but these applications need realistic financial distributions.""

""The process of encoding classical data into quantum states is widely recognised as a major bottleneck when implementing many quantum algorithms on hardware.""

HSBC partnered with Haiqu and academic researchers to improve financial modeling on quantum computers. Their research focuses on encoding real-world probability distributions into quantum circuits. This collaboration aims to secure financial transactions as quantum computing becomes viable. The team studied Lévy distributions for modeling extreme stock market variations. Efficient methods for these distributions on quantum computers can enhance market behavior modeling. The challenge of encoding classical data into quantum states is significant for financial risk modeling and simulation, impacting the implementation of quantum algorithms.

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