Shares of International Business Machines Corporation (NASDAQ: IBM) are up Thursday after the company announced it reached a technological milestone in quantum computing.
What To Know: IBM partnered with London-based bank HSBC to test using quantum computers in bond trading. According to the press release, the trial delivered a 34% improvement in predicting how likely a trade would be filled at a quoted price compared to classical techniques used in the industry. IBM shares jumped on the news.
The teams used multiple IBM computers to carry out the quantum computing experiments where the goal was to optimize requests for quotes in over-the-counter markets. IBM and HSBC also validated real and production-scale trading data on IBM quantum computers to predict the probability of winning customer inquiries.
"This is a ground-breaking world-first in bond trading. It means we now have a tangible example of how today's quantum computers could solve a real-world business problem at scale and offer a competitive edge, which will only continue to grow as quantum computers advance,” said HSBC group head of quantum technologies Philip Intallura.
IBM and HSBC said quantum experiments are essential to unlock new algorithms and applications that are poised to transform industries as quantum computers scale and the future of computing takes shape.
IBM Price Action: IBM shares were up 5.41% at $282.01 at the time of publication on Thursday, according to Benzinga Pro.
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