Toshiba has invented a money trading machine and is applying for a licence to operate a hedge fund.
Toshiba says its machine, developed in its Kawasaki research centre, uses quantum computing, patallel processing and a proprietary algorithm to identify arbitrage opportunities in the foreign exchange markets.
The algorithm makes the optimum selection from large numbers of permutations based on a its “simulated bifurcation machine” theory.
The machine works by noticing distortions in foreign currency transaction rates caused by big orders and then executing an arbitrage transaction based on the distortion.
In a demo of the machine, nine transactions out of ten made a profit.
Toshiba intends to set up a high frequency trading operation and, if it is successful, offer it to financial institutions.