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HSBC experiments with preventing quantum computer attacks on FX trading

Banking and Insurance

HSBC experiments with preventing quantum computer attacks on FX trading

In an effort to prevent cybercriminals from using next-generation quantum computers to launch attacks on sensitive financial data, HSBC has concluded what it claims is the first trial of this kind in the world.

The British bank claimed to have used the program to protect a trade involving the conversion of 30 million euros into US dollars on its in-house platform, HSBC AI Markets.

The test, whose specifics are revealed here for the first time, demonstrates how banks are attempting to outwit cybercriminals who might utilize computer advancements to obtain trading data in international financial systems like the $7.5 trillion daily foreign exchange market.

The CEO of HSBC Europe, Colin Bell, stated to reporters that although they believed quantum computers would take some time to crack conventional encryption, there was no better time to get ready for this.

Using Toshiba-developed hardware and assistance from Amazon Web Services, HSBC conducted a test on a network built by British telecom giant BT.

According to Andrew Shields, head of Toshiba Europe's quantum technology, the test is a critical step in demonstrating the technology's commercial applications using fiber networks that are currently in use.

It is imperative that digital infrastructure continue to be secure against emerging quantum-based threats, according to BT Group Chief Security and Networks Officer Howard Watson.

HSBC stated that the test assisted it in strategizing the introduction of quantum key distribution (QKD), a type of encryption, to a few of its trading systems.

Sensitive data can be encrypted and decrypted using secret keys that are delivered between parties via QKD using light particles, according to the bank.

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