HSBC and IBM complete the first quantum bond trading test, increasing accuracy by 34%.

HSBC ( and IBM jointly announced on 9/25 that they have completed the world's first pilot test of applying quantum computing to bond algorithmic trading. This experiment combined IBM's latest quantum processor "Heron" with traditional computers, enhancing the accuracy of the system's "quote execution rate prediction" in the European corporate bond market to 34%. This is not only a technological breakthrough in quantum computing but also allows the financial market to see the commercial value brought by quantum computers for the first time.

Quantum computing practical bond trading, significantly improving transaction rate prediction accuracy.

HSBC stated that this is the world's first case of applying quantum computing to bond algorithmic trading. The experiment focuses on the pricing process of the European corporate bond market.

In other words, when investors inquire about buy and sell prices, the system needs to predict in real-time whether the transaction can be completed at the quoted price. Test results show that compared to relying solely on traditional computers, the model assisted by quantum computing can improve the accuracy of transaction rate predictions by up to 34%, which is a significant breakthrough for bond trading that requires instant decision-making.

Quantum computing and traditional computing join forces to accurately solve the pricing challenges of off-exchange corporate bonds.

This test is not fully handed over to quantum computers, but rather combines quantum computing with traditional computers. The models developed by both sides utilize the high-speed computing space of quantum computers and the stable analytical capabilities of traditional computers during computation.

IBM's latest Heron quantum processor, through its cloud platform and the Qiskit open-source quantum software interface, aids in processing complex and noisy price signals in the market, capturing hidden key information better than traditional computers operating alone. This computational process is particularly helpful for bond pricing requests )Request-for-Quote, RFQ(, as this type of over-the-counter )OTC( market lacks a centralized market, making prices and transaction conditions more difficult to predict.

Quantum computing actually breaks the bottleneck of traditional computing.

The algorithmic trading of corporate bonds is itself a race against time, where the system quickly and automatically calculates reasonable quotes for clients based on real-time market conditions and risk assessments, allowing traders to focus their efforts on larger or more complex trades.

However, the price fluctuations in the corporate bond market are rapid, and the data is vast and complex. Traditional computers often encounter computational bottlenecks when processing these high-dimensional data. This experiment proves that quantum computers can break this limitation, helping algorithms to more quickly and accurately capture hidden signals that influence transactions, further enhancing the success rate of quote executions.

Senior executives from both sides: More quantum applications will emerge.

Both parties are quite satisfied with the results brought about by this cooperation. Philip Intallura, Head of Quantum Technology at HSBC, believes that this is a significant milestone in bond trading, proving that existing quantum computers can handle real business problems, rather than just empty talk. He stated that the commercial application of quantum computing is no longer distant, and the financial industry is already at the new frontier of computation.

IBM Quantum Vice President Jay Gambetta also noted that this collaboration demonstrates the power of "the combination of financial domain expertise and quantum algorithm research," emphasizing that as the performance of quantum computers continues to improve, more new algorithms and applications will emerge in the future.

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This article discusses the successful completion of the first quantum bond trading test by HSBC and IBM, with an accuracy increase of 34%, originally appearing in Chain News ABMedia.