Note from the Publisher: Fintech, a/k/a “financial technology” is a funny term, because it really ain’t nothin’ new. More than any other subject, I believe finance ties us all together and always has (the abacus was fintech back in its time, after all), so it’s bound to be one of the leading areas of innovation. To that end, trading exchanges and trading platforms are what I believe to be the original fintechs of the past century, long before all these cool apps and robos and P2Ps, etc emerged. And that all ties to traders, who now are really having to be programmers/coders and be trained in quantum computing in order to put themselves on a trading career track moving forward. The times, they are a chagin’.
“Quantum computers are the wave of the future in trading and investment management, and savvy bankers and quantitative hedge fund professionals are already using them to solve some of the hardest problems in financial services.
Presenting at the Trading Show conference in New York last week, Marcos Lopez de Prado, senior managing director and manager of several multibillion-dollar internal funds at Guggenheim Partners, defined quantum computing (QC) as algorithms and systems that apply physics and quantum phenomena to the solution of complex mathematical problems. He noted that deterministic computers (DCs) – i.e. the ones that most of us use on a daily basis – cannot efficiently simulate a probabilistic system like the financial markets, but QC can.
Here are five reasons that quantum computing represents the future for investment managers, research analysts and traders on the buy-side and the sell-side, according to Lopez de Prado.
1. Quantum computing can help traders, analysts and their firms overcome financial research challenges…..
2. Instead of a simple either/or dichotomy, QC evaluates all possible solutions simultaneously…..
3. QCs treat the universe as a computing device…..
4. QCs make financial problems previously deemed impossible to solve manageable….
5. The relevance for investment managers, analysts and traders.”