{"id":207203,"date":"2025-10-07T17:44:09","date_gmt":"2025-10-07T17:44:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/207203\/"},"modified":"2025-10-07T17:44:09","modified_gmt":"2025-10-07T17:44:09","slug":"hsbc-ibm-apply-quantum-computing-to-bond-trading","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/207203\/","title":{"rendered":"HSBC & IBM Apply Quantum Computing to Bond Trading"},"content":{"rendered":"

The experiment delivered \u201cstrong improvements\u201d in finding hidden pricing signals in the European corporate bond market.<\/p>\n

\"\"Global bank HSBC and a team from IT systems giant IBM say that they have achieved a \u201cground-breaking\u201d achievement in bond trading via quantum computing, which IBM says is a meeting of computer science and engineering \u201cthat harnesses the unique qualities of quantum mechanics to solve problems\u201d in ways superior to classical computing.<\/p>\n

\u201cIn this case, IBM Heron was able to augment classical computing workflows to better unravel hidden pricing signals in noisy market data than standard, classical-only approaches in use by HSBC, resulting in strong improvements in the bond trading process,\u201d according to the announcement. Heron is IBM\u2019s latest quantum processor.<\/p>\n

\u201cThis is a ground-breaking world-first in bond trading. It means we now have a tangible example of how today\u2019s quantum computers could solve a real-world business problem at scale and offer a competitive edge, which will only continue to grow as quantum computers advance,\u201d says Philip Intallura, HSBC group head of quantum technologies, in a prepared statement.<\/p>\n

HSBC and IBM investigated how \u201cquantum computers could optimize requests for quote in over-the-counter markets, where financial assets such as bonds are traded between two parties without a centralized exchange or broker,\u201d officials explain. \u201cIn this process, algorithmic strategies and statistical models estimate how likely a trade is to be filled at a quoted price. The teams validated real and production-scale trading data on multiple IBM quantum computers to predict the probability of winning customer inquiries in the European corporate bond market.\u201d<\/p>\n

This approach \u201cutilized quantum and classical computing resources to deliver up to a 34 percent improvement in predicting how likely a trade would be filled at a quoted price, compared to common classical techniques used in the industry,\u201d officials say.<\/p>\n

IBM officials say their quantum computers are available via the cloud and Qiskit, an open quantum software stack.<\/p>\n

Need a Reprint?<\/a>\t<\/p>\n","protected":false},"excerpt":{"rendered":"The experiment delivered \u201cstrong improvements\u201d in finding hidden pricing signals in the European corporate bond market. Global bank…\n","protected":false},"author":2,"featured_media":207204,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46],"tags":[9487,22309,106814,191,40650,558,2047,118960,118961,74,918],"class_list":{"0":"post-207203","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-computing","8":"tag-automation","9":"tag-back-office","10":"tag-bond-trading","11":"tag-computing","12":"tag-hsbc","13":"tag-ibm","14":"tag-quantum-computing","15":"tag-securities-operations","16":"tag-standards","17":"tag-technology","18":"tag-wall-street"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/207203","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=207203"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/207203\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/207204"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=207203"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=207203"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=207203"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}