HSBC and IBM deliver world-first quantum breakthrough in corporate bond trading with 34% predictive improvement

HSBC and IBM deliver world-first quantum breakthrough in corporate bond trading with 34% predictive improvement

(IN BRIEF) HSBC, in partnership with IBM, has delivered the first empirical evidence that quantum computers can add measurable value to financial markets, demonstrating up to a 34% improvement in predicting bond trade outcomes compared to standard classical methods. The trial applied hybrid quantum-classical techniques to optimise pricing predictions for customer inquiries in the European corporate bond market, using real production-scale data on IBM’s latest Heron quantum processor. The results show that quantum computing can uncover complex signals in noisy market data that traditional systems miss, providing HSBC with a tangible competitive edge. HSBC said this breakthrough confirms quantum’s potential as a near-term tool for financial services, while IBM highlighted the importance of combining domain expertise with quantum innovation to unlock transformative new applications.

(PRESS RELEASE) LONDON, 25-Sep-2025 — /EuropaWire/ — HSBC has announced the world’s first-known empirical demonstration that current quantum computers can deliver measurable advantages in financial markets. In collaboration with IBM, the bank successfully trialled quantum-enhanced techniques for algorithmic bond trading, achieving up to a 34% improvement in predicting whether customer inquiries in the European corporate bond market would be filled at quoted prices compared with established classical approaches.

Algorithmic trading in corporate bonds requires sophisticated computer models to evaluate client requests for quotes (RFQs) in a highly competitive environment. These models factor in real-time market conditions and risk assessments to provide pricing quickly and accurately. HSBC’s trial revealed that integrating quantum computing into this workflow enabled deeper analysis of complex market signals than classical methods alone, resulting in a significant boost in predictive accuracy.

The joint experiment focused on optimising RFQ processes in over-the-counter (OTC) markets, where assets such as corporate bonds are traded bilaterally rather than through centralised exchanges. Using real, production-scale trading data, HSBC and IBM tested hybrid quantum-classical models on several IBM quantum systems, including the company’s most advanced Heron processor. The results showed quantum computing’s ability to uncover hidden pricing signals in noisy data, strengthening HSBC’s ability to compete effectively in fast-moving OTC environments.

Philip Intallura, HSBC Group Head of Quantum Technologies, described the breakthrough as a transformative moment for financial services:
“This is a ground-breaking world-first in bond trading. For the first time, we have concrete evidence that today’s quantum computers can deliver an edge on real-world business problems. These positive results on existing hardware give us confidence that quantum computing will provide near-term benefits, rather than being a technology that is always just over the horizon.”

Jay Gambetta, Vice President IBM Quantum, added:
“This project illustrates what becomes possible when domain knowledge in finance is paired with quantum algorithm innovation. By combining classical computing strengths with the rich computational power of quantum processors, we are uncovering new solutions that will shape the next era of computing and industry transformation.”

Quantum computing represents a paradigm shift in processing power, using the principles of quantum mechanics to address challenges too complex for even the largest supercomputers operating independently. By augmenting traditional computing workflows, HSBC and IBM have shown that quantum technology is already capable of creating value in one of the most demanding sectors of the global economy.

IBM’s quantum systems are currently accessible via the cloud, supported by Qiskit, the open-source quantum software stack.

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HSBC: adam.shortman@hsbc.com/anna.do@hsbc.com

SOURCE: HSBC Group