Publication Type

Conference Proceeding Article

Version

acceptedVersion

Publication Date

9-2021

Abstract

Applying quantum computing to real world applications to assess the potential efficacy is a daunting task for non-quantum specialists. This paper shows an implementation of two quantum optimization algorithms applied to portfolios of trade finance portfolios and compares the selections to those chosen by experienced underwriters and a classical optimizer. The method used is to map the financial risk and returns for a trade finance portfolio to an optimization function of a quantum algorithm developed in a Qiskit tutorial. The results show that whilst there is no advantage seen by using the quantum algorithms, the performance of the quantum algorithms has no statistically significant degradation. Therefore, it is promising that in the future, with expected improvements in quantum hardware, the theoretically superior processing speeds, and data volumes that quantum offers, will also be applicable to trade finance.

Keywords

Quantum computing, trade finance, portfolio optimisation.

Discipline

Databases and Information Systems | Finance and Financial Management | Operations and Supply Chain Management | Theory and Algorithms

Research Areas

Information Systems and Management

Publication

2021 IEEE International Conference on Services Computing (SCC): Chicago, September 5-10: Proceedings

First Page

456

Last Page

459

ISBN

9781665416832

Identifier

10.1109/SCC53864.2021.00066

Publisher

IEEE Computer Society

City or Country

Los Alamitos, CA

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.1109/SCC53864.2021.00066

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