Quantum computing has been described as a solution looking for a problem, and a tie-up between HSBC and IBM is an example of how the emerging technology can be used in the business world. The two companies have combined in a project that could help banks with planning for future trades.

The project is the first example of quantum computing being used in algorithmic trading, according to HSBC and IBM. They used different models to predict how likely bonds would be to trade at a given price, and found that quantum computing performed better than classical computing models — in some cases, 34 percent better.

According to HSBC, algorithmic trading is a good fit for quantum computing due to the highly complex nature of the market conditions that underlie trading. In this trial, it used computer models in a simulated competitive bidding process to price customer inquiries in the automated bond-trading process.