TP1400 refers to a recent breakthrough project where IBM and HSBC collaborated on quantum-enabled algorithmic trading for the European corporate bond market. In September 2025, HSBC and IBM demonstrated the world’s first known empirical evidence showing that quantum computers can improve real-world financial applications. Their trial used both quantum and classical computing to optimize requests for quotes (RFQs) in the over-the-counter bond market, resulting in up to a 34% improvement in predicting how likely a trade would be filled at a quoted price compared to classical models alone.

Project Details

• HSBC utilized IBM’s latest quantum computers (notably IBM’s Heron quantum processor) to extract new data features from real, production-scale historical trading data.
• These quantum-generated features enriched classical machine learning models, boosting their effectiveness in estimating the “fill probability” for bond trades.
• The hybrid approach did not require quantum computers to be integrated into live trading systems in real time; quantum processing was executed offline, maintaining the low-latency requirements of trading systems.
• The improvement—up to 34% in outcome prediction—marks a significant milestone, indicating real, near-term advantages of quantum computing in the financial industry.

Industry Impact

• This development positions quantum computing as a practical technology for optimizing and transforming high-stakes financial processes such as bond trading.
• The success of the TP1400 project suggests that similar hybrid quantum-classical workflows may soon be adopted for other complex optimization and predictive challenges across financial markets.

In summary, TP1400 IBM HSBC highlights a world-first, large-scale use case for quantum computing in real-world financial trading, demonstrating tangible value over traditional methods and hinting at broader industry transformation in the future.

Peter Hellman

Senior Advisor