Quantum Computing in Finance: Will Humans or Machines Have the Final Say in Setting Future Values?
Major financial players like Goldman Sachs are investing heavily in quantum computing to reduce risk in single trades, but could widespread adoption of quantum algorithms for calculating derivatives values cause “herding” and destabilize a market with over $700 trillion at risk? When algorithmic trading already dominates the markets, we explore the pros and cons of quantum computing’s speed in Monte Carlo simulations that drive current values, and the potential outcomes when unexpected events like the 2008 bankruptcy of Lehman Brothers rock the derivatives markets with years-long consequences.