SMBC and Toshiba build quantum-driven Japan and US equity indices

Stocks will be chosen and weighted using Toshiba’s quantum computer.

Sumitomo Mitsui Banking Corporation (SMBC) and Toshiba Corporation are jointly developing two equity indices that make use of quantum-driven technologies.

The SMBC/TOSHIBA Quantum Driven Diversified Japan Equity Index and the SMBC/TOSHIBA Quantum Driven Diversified US Equity Index will use constituent stocks of Japanese and U.S. equity indices, the two Japanese companies said in a joint statement. 

Stocks will be chosen and weighted using the Simulated Bifurcation Machine, Toshiba’s quantum computer. Weight given to an individual stock will be based on historical price volatility, with end of 2015 as the base date.

Daily calculation and distribution of the Indices will be done by S&P Dow Jones Indices (S&P DJI).

SMBC and Toshiba plan to start exploratory discussions with management firms on index funds, ETFs, and other investment vehicles linked to the indices.

The two companies said they will continue to explore ways to apply advanced technologies in the financial sector, including quantum and quantum-driven technologies.