Street Calls of the Week
Investing.com -- IBM (NYSE:IBM) stock rose 3.3% Thursday morning after HSBC (NYSE:HSBC) announced it had successfully completed the world’s first-known quantum-enabled algorithmic trading trial using IBM’s quantum computing technology.
The collaboration between HSBC and IBM demonstrated up to a 34% improvement in predicting the probability of winning customer inquiries in the European corporate bond market compared to standard classical computing techniques. The trial leveraged IBM’s quantum computers to optimize requests for quote in over-the-counter markets, specifically focusing on bond trading.
HSBC validated real production-scale trading data on multiple IBM quantum computers, with IBM Heron - the company’s latest and highest-performing quantum processor - augmenting classical computing workflows to better analyze pricing signals in market data.
Philip Intallura, HSBC Group Head of Quantum Technologies, called the trial "a ground-breaking world-first in bond trading," adding that it provides "a tangible example of how today’s quantum computers could solve a real-world business problem at scale and offer a competitive edge."
The experiment explored how quantum computers could optimize bond trading in over-the-counter markets, where financial assets are traded between two parties without a centralized exchange. The quantum approach helped unravel hidden pricing signals in noisy market data better than standard classical-only approaches currently used by HSBC.
IBM’s quantum computers are available through the cloud and Qiskit, an open quantum software stack. The successful demonstration suggests practical applications of quantum computing in financial services may be closer to reality than previously thought.