FIN 609 (FIN 6090): Quantum Computing in Finance
Contents
This course covers the principles and economics of quantum computing and its potential applications in finance. It introduces the basics of quantum computing for a non-technical audience and discusses the state of current hardware developments. Considered applications include portfolio optimization and simulations. For the applications, the course examines whether a potential quantum advantage holds in theory, on real machines, and in economic terms. Other topics include the risks that quantum computers pose to financial stability and the responses of financial institutions, regulators, and central banks.
Learning outcomes
Upon successful completion of this course, students are able to
- evaluate claims about quantum computing in finance by identifying which kind of advantage it may give (theoretical, practical computational, or economic)
- explain in plain language how a quantum computer works, including qubits, measurement, interference, and entanglement, and read a simple quantum circuit
- describe what current quantum hardware can do and distinguish the main hardware approaches
- explain how economic problems are translated into problems that quantum optimization algorithms can address
- explain the risks that quantum computers pose to cryptography and how this matters for financial institutions, regulators, and central banks
Necessary prerequisites
–
Recommended prerequisites
Basic knowledge of statistics (probabilities, mean, variance), linear algebra (such as simple matrix multiplication), and of introductory finance (FIN5000 recommended)
| Forms of teaching and learning | Contact hours | Independent study time |
|---|---|---|
| Lecture | 1 SWS | 5 SWS |
| ECTS credits | 2 |
| Graded | yes |
| Workload | 60h |
| Language | English |
| Preliminary course work | – |
| Form of assessment | Written exam (45 min) |
| Restricted admission | no |
| Further information | Student Portal |
Examiner Performing lecturer |  | Dr. Stefan Scharnowski Dr. Stefan Scharnowski |
| Frequency of offering | Spring semester |
| Duration of module | 1 semester |
| Range of application | M.Sc. MMM, M.Sc. Bus. Edu., M.Sc. Econ., M.Sc. Bus. Inf., M.Sc. Bus. Math., M.Sc. MMFACT, M.Sc. MMOSCM |
| Program-specific Competency Goals | CG 1, CG 2 |
| Literature | There is no single textbook. A detailed reading list will be provided at the beginning of the course. Starting references Deodoro, J., Gorbanyov, M., Malaika, M., & Saadi Sedik, T. (2021): Quantum Computing and the Financial System: Spooky Action at a Distance? IMF Working Paper 2021/ Auer, R., Dupont, A., Gambacorta, L., Park, J. S., Takahashi, K., & Valko, A. (2024): Quantum Computing and the Financial System: Opportunities and Risks. BIS Papers No 149. Bernhardt, C. (2019): Quantum Computing for Everyone. MIT Press. Aaronson, S. (2008): The Limits of Quantum Computers. Scientific American, 298(3), 62–69. Herman, D., Googin, C., Liu, X., Sun, Y., Galda, A., Safro, I., Pistoia, M., & Alexeev, Y. (2023): Quantum computing for finance. Nature Reviews Physics, 5, 450–465. |
| Course outline | A detailed syllabus will be provided at the beginning of the course. Preliminary outline: 1. Qubits, Measurement, and Why Quantum Computing Is Different 2. Gates, Circuits, Interference, Entanglement, and Quantum Computing Hardware 3. Portfolio Selection and Quantum Optimization 4. Lab on Portfolio Optimization 5. Monte Carlo and Quantum Amplitude Estimation 6. Risks, Regulators, and Does Quantum Computing Actually Matter for Finance? |