Key Financial Applications Benefiting from FTQC

• Optimal Execution
  Reduces market impact and enhances effective liquidity to strengthen trading strategies.

• Portfolio Optimization with Realistic Constraints
  Manages complex portfolios with numerous constraints using a quantum solution that leverages only hundreds of logical qubits, significantly improving asset allocation and risk management.

• Interbank Settlement Reordering (STP)
  Streamlines payment processing and optimizes interbank transactions while reducing liquidity requirements through precise combinatorial optimization.

• Quantum Machine Learning (QML) on Real-World Datasets
  NISQ solutions can only handle limited-size datasets.
  With FTQC becoming a reality, we can now work with meaningful datasets that include images, short videos, and millions of rows of data.

• Comprehensive XVA Pricing
  Leverages quantum capabilities for complex risk evaluations—such as credit, debit, funding, and capital valuation adjustments (XVA)—essential for multi-stage Monte Carlo processes in financial risk management.

• Advancements in QML and Quantum Reinforcement Learning (QRL)
  AI and machine learning applications, such as anomaly detection and few-shot learning, still face limitations due to data scarcity.
  Quantum machine learning offers promising solutions, especially for learning from limited or simulated data, and quantum reinforcement learning is expected to significantly enhance inventory management and rapid re-hedging in scenarios requiring real-time adjustments.