HSBC and IBM said Thursday that they have conducted the world’s first-known trial using quantum computers to enhance algorithmic bond trading, reporting up to a 34% improvement in predicting the probability of winning customer inquiries in Europe’s corporate bond market.
HSBC and IBM Trial Quantum-Enabled Algorithmic Bond Trading
The experiment is said to have combined classical and quantum computing resources to optimise pricing strategies in over-the-counter bond trading, where banks compete to provide quotes to clients.
Using IBM’s Heron processor, HSBC tested real production-scale trading data, demonstrating that quantum techniques could better identify hidden pricing signals in noisy datasets.
Philip Intallura, HSBC’s Group Head of Quantum Technologies, hailed the trial as “a ground-breaking world-first in bond trading,” adding that it provided “a tangible example of how today’s quantum computers could solve a real-world business problem at scale.”
IBM Quantum Vice President Jay Gambetta described the collaboration as proof of what is possible “when deep domain expertise is integrated with cutting-edge algorithm research.”
He said the work highlighted how combining classical and quantum approaches could transform industries as the technology matures.
HSBC said the results strengthened its belief that quantum computing could soon offer a competitive edge in financial services.
The bank has been exploring near-term applications of the technology, focusing on areas where quantum can augment existing systems rather than replace them outright.
IBM’s quantum computers are available via the cloud, with tools such as Qiskit enabling integration into financial workflows.
