LONDON, Sept 25 (Reuters) - Europe's biggest bank HSBC ( HSBC )

said on Thursday that a trial use of quantum computers

to aid bond trading had produced promising results, in a rare

example of a major finance company finding early benefits from

the emerging technology.

HSBC ( HSBC ) said its quantum computing pilot - run with technology

firm IBM ( IBM ) - had delivered a 34% improvement in predicting

how likely a bond trade would be filled at a quoted price,

giving it a competitive edge compared to normal computing.

Quantum computing aims to leverage quantum physics to solve

complex problems much faster than conventional computers. Its

backers say it could transform industries including finance, but

it is early days and has few practical applications so far.

The quantum technology market could be worth up to $100

billion within a decade, largely driven by growth in quantum

computing which generated just $4 billion in revenue last year,

consultancy McKinsey said in a report in June.

HSBC's ( HSBC ) trial with IBM ( IBM ) combined quantum and classical

computing to help it price trades in the European corporate bond

market. Computer algorithms are used to quickly and

automatically price client enquiries in a competitive bidding

process, factoring in real-time market conditions and risk

estimates, HSBC ( HSBC ) said.

"It means we now have a tangible example of how today's

quantum computers could solve a real-world business problem at

scale," said Philip Intallura, HSBC's ( HSBC ) group head of quantum

technologies.