Quantum computers have the potential to change the way we think about what we can do with computers. Quantum computing is not merely an upgrade to faster machines, it is a completely different machine built on a completely different set of principles. Because the technology is so fundamentally different, it has the potential to change how we think about solving problems in the financial sector.
Research shows that quantum computers have the potential to achieve a quadratic speedup when compared with classical computers for certain types of applications such as options pricing. While this speedup might not be fully achievable today, FCAT is preparing for a time when quantum computers will be viable. Experimenting with this technology helps us understand how quantum computing may benefit the financial sector and yield the best results for our customers.
FCAT teamed up with Amazon’s Quantum Solutions Lab to develop a proof-of-concept application through Amazon Braket for an asset management use case. The proof-of-concept includes a hybrid quantum-to-quantum algorithm that uses a quantum annealer to create a synthetic security which mimics the behavior of a market index. It then feeds the output from that algorithm to a gate-based quantum computer to price options on that security.
Amazon Braket enables FCAT to develop hardware-agnostic software so we can easily switch to new quantum systems as they become available. We’re able to research the strengths of different quantum backends and build hybrid classical-to-quantum and quantum-to-quantum workflows. FCAT worked with Amazon’s Quantum Solutions Lab to create proofs-of-concept that push the boundaries of what is possible today with cloud-based quantum computers for the financial sector, as part of our broader efforts to be able to quickly deliver innovative solutions to help meet the rapidly evolving needs of our customers.
This quantum computing proof-of-concept is just one example of how FCAT is experimenting with emerging technologies to create impact beyond a specific system. We are building a more durable, flexible and long-term foundation for the innovation of quantum computing applications at the company.
For more information on FCAT’s experimentation with Amazon Braket, check out this deeper dive.