Japanese tech giant Toshiba is joining forces with Dharma Capital to trial the use of quasi-quantum technology in financial trading.
The experiment will investigate the effectiveness of high frequency trading (HFT) strategies for Japanese listed stocks based on "optimal solutions" presented by a quasi-quantum computer -Toshiba’s Simulated Bifurcation Machine.
Toshiba says that by combining its computing power with conventional HFT technology, it is now possible to search statistical arbitration opportunities that have not been targeted before, with a sufficient level of low latency against market price fluctuations.
More broadly, establishing trading systems that can quickly detect ever-untargeted mispricings and eliminate them is expected to further improve market efficiency and liquidity, says the firm.
To test this, Toshiba and Dharma Capital will examine the effectiveness of HFT strategies that are feasible only with the computational power of the Simulated Bifurcation Machine.
Combining Dharma Capital’s HFT technologies with Toshiba’s Simulated Bifurcation Machine "will find undiscovered opportunities by exploring all possibilities while maintaining sufficient speed," claim the partners.