Barclays & IBM Collaborate on Proof-of-Concept Quantum Clearing Algorithm
(Barclays) Barclays’ chief technology and innovation office, in collaboration with IBM, has published a paper “Quantum Algorithms for Nixed Binary Optimization”, describing a proof-of-concept quantum optimised application for transaction settlement for ensuring the integrity of trades in securities.
the problem of transaction settlement as one that is difficult to optimise. This is because it requires a combination of both the legal constraints that must be satisfied when settling delivery-versus-payment transactions and the additional optionality introduced by what the authors describe as “collateralising assets and utilising credit facilities”. This is a computationally complex problem because of traders’ ability to tap into funds before their transaction has been cleared. The more trades that are involved, the more complexity increases.