HSBC says quantum computing trial aids bond trading
By Reuters
September 25, 2025 8:56 AM GMT+6 Updated 1 hour ago
A photo of the HSBC building in London’s Canary Wharf financial district, Britain, taken on August 1, 2023. REUTERS/Susannah Ireland/File Photo. Licensing rights available.
LONDON, Sept 25 (Reuters) – HSBC (HSBA.L), Europe’s largest bank, announced on Thursday that a trial using quantum computing to support bond trading has shown encouraging results, marking a rare instance of a major financial institution realizing early advantages from the technology.
The bank said its quantum computing pilot, conducted in partnership with IBM (IBM.N), improved the prediction of whether a bond trade would be executed at the quoted price by 34%, offering a potential competitive edge over conventional computing methods.
Quantum computing seeks to harness the principles of quantum physics to tackle complex problems far more efficiently than traditional computers. Advocates argue that it has the potential to revolutionize various sectors, including finance, healthcare, logistics, and cybersecurity. However, the technology is still in its infancy, and practical, real-world applications remain limited at this stage. According to a June report by consultancy firm McKinsey, the quantum technology market could expand dramatically, potentially reaching a valuation of up to $100 billion within the next ten years, driven primarily by the growth of quantum computing, which generated only around $4 billion in revenue last year. This suggests a massive opportunity for early adopters and innovators in the field as the technology matures and more commercial solutions emerge.
HSBC Explores Quantum Computing to Transform Bond Trading
Combining Quantum and Classical Computing for Market Efficiency
HSBC has embarked on a pioneering trial in collaboration with IBM, leveraging both quantum and classical computing to enhance the pricing of trades in the European corporate bond market. The initiative aims to speed up and refine how client enquiries are priced in a competitive bidding environment. By integrating advanced computer algorithms, the system can automatically and rapidly calculate trade prices, taking into account real-time market conditions, risk assessments, and liquidity factors, HSBC explained.
Real-World Impact of Quantum Technology
Philip Intallura, HSBC’s Group Head of Quantum Technologies, highlighted the significance of the trial:
"This gives us a concrete example of how today’s quantum computers can address real-world business challenges at scale."
The project demonstrates the potential for quantum computing to improve operational efficiency, reduce manual effort, and provide more accurate pricing in complex financial markets—a sector where milliseconds and precision matter.
Future of Quantum in Finance
While still in early stages, HSBC’s trial underscores the growing interest among major financial institutions in exploring quantum solutions. As the technology evolves, banks anticipate broader applications, from risk modeling to portfolio optimization and fraud detection, potentially reshaping the future of global finance.
Reporting by Iain Withers | Editing by Mark Potter
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