Brief Description

A novel High-Frequency Trading (HFT) solution powered by Toshiba’s quantum-inspired technology SQBM+, aiming to find short-lived profitable arbitrage opportunities in the currency market in real time.

Key Highlights

This system will make microseconds level and high success rate HFT available and could help algorithmic trading teams in financial services build a competitive advantage. All results shown are historical data from when the experiment was conducted.

• Supports multiple currencies and flexible HFT trading strategies.
• Value Proposition: help algorithmic trading teams miss less and profit more.
• Advantage vs Classical: The demo achieved industry-breaking performance in HFT trading speed and success rate far beyond the limits of using classical technologies and algorithms.
• Availability: The demo HFT system is available today through implementing SQBM+ on a FPGA board.

Detailed Description

Currency arbitrage High-Frequency Trading (HFT) is a common algorithmic trading strategy in financial services. The key is to find as many profitable currency combinations (or trading paths) as possible and avoid unprofitable transactions or wrong trades. There are two industry-wide challenges in this use case. Firstly, profitable arbitrage opportunities can be very short-lived as less than 1 ms. Existing technologies can hardly identify these opportunities due to speed limits. Secondly, it is difficult to maintain a consistent 50% higher trading success or profit rate. These challenges form a bottleneck to all currency arbitrage HFT solutions on the market.

Therefore, we proposed an SQBM+ powered currency arbitrage HFT system that breaks the speed limit, achieves 30 µs trading capacity and increases the success rate to 98%. As a result, the system is able to capture sub-millisecond short-lived opportunities without mistake, which was not possible before using SQBM+. In other words, it solved the industry-wide bottleneck and can significantly increase the trading speed and profitability of HFT systems.

The above breakthrough is owing to SQBM+’s unique ability to analyze vast datasets quickly and optimize trading strategies in tens of microseconds timeframes. SQBM+ is Toshiba’s flagship novel quantum-inspired technology that has demonstrated speedups on combinatorial optimization tasks by emulating specific quantum phenomena on classical infrastructures (GPU, FPGA) and achieving a step-change parallel computing capability.

Disclaimer

This Demo is for demonstration purposes only and not for any other purposes. Toshiba Digital Solutions Corporation (TDSL) owns all right, title, and interest in this Demo. TDSL makes no representations or warranties regarding this Demo. To the extent permitted by law, TDSL disclaims all liability including direct and indirect, incidental, or consequential damages, including loss of profits, arising out of or relating to the use of this Demo. The laws designated by the TDSL entity providing this Demo will govern without reference to conflicts of law principles.