Quantum Computing Has Potential to Reshape Securities Industry, New FINRA Report Says

The Financial Industry Regulatory Authority (FINRA) recently published a report titled „Quantum Computing and the Implications for the Securities Industry“. The report discusses research undertaken by FINRA’s Office of Financial Innovation on the application of quantum computing in the securities market and summarizes key findings in the following areas:
– the potential applications for quantum computing that are currently being explored by financial market participants such as trade execution and settlement optimization, investment portfolio optimization, or simulation exercises e.g. to predict impacts on the securities market by changes in macro-economic factors;
– the potential threats to cybersecurity that quantum computing may bring about; and
– regulatory issues that have arisen in the context of quantum computing and that should be considered by firms deploying quantum computing such as requirements pertaining to the management of cybersecurity threats, data protection and security, and third-party usage or delegation.
FINRA would welcome any comments on the report by March 15, 2024 to assess whether or not it should provide further guidance for firms on the deployment of quantum computing, particularly as far as industry safeguards are concerned.