HSBC achieves breakthrough in bond trading thanks to quantum computer pilot project

Europe's largest bank, HSBC, announced promising results from a pilot with quantum computers in bond trading, a rare example of the early benefits of this emerging technology in the financial sector. In collaboration with IBM, a 34 percent improvement in the accuracy of predicting whether a bond trade would be executed at a given price was achieved. This gives HSBC a competitive advantage over conventional calculations. Quantum computers leverage the principles of quantum physics to solve complex problems significantly faster. Advocates of this technology see great potential for transforming various industries, including the financial sector. However, the technology is currently still in its early stages, with limited practical applications. According to a McKinsey report, the quantum technology market could be worth up to 100 billion dollars in a decade, driven by the currently small but growing field of the quantum computing industry, which generated 4 billion dollars in revenue last year. As part of its project, HSBC combined quantum with classical computing power to process price inquiries in the European corporate bond market more efficiently and in real time. This involves using computer algorithms to account for market conditions and risk estimates, enabling quick and automatic pricing offers to clients in a competitive bidding process. Philip Intallura, Head of Quantum Technologies at HSBC, highlighted that this is tangible proof of how today's quantum computers can already solve real business challenges on a large scale.