arXiv subjects

Rob Otter

Publications and source records attributed to Rob Otter.

6 recordsLinked to original sources

arXiv2026

Quantum-Informed Portfolio Selection: An End-to-End Pipeline Validated on Trapped-Ion Hardware with Real Market Data

Portfolio diversification - a cornerstone of modern investment management - can be formulated as a Maximum Independent Set (MIS) problem on asset correlation graphs. Solving this problem at scale is computationally challenging, motivating the exploration of quantum algorithms for practical financial optimization. We propose an end-to-end pipeline leveraging qReduMIS, a recursive hybrid quantum-classical algorithm. Rather than using quantum optimization to directly produce a final solution, qReduMIS leverages independent set measurements from the Quantum Approximate Optimization Algorithm (QAOA) to identify frozen nodes - vertices likely to belong to optimal solutions - thereby guiding and unblocking subsequent (provably optimal) classical reductions on the remaining graph. We benchmark qReduMIS on real financial data from four major market indices with up to 225 assets, executing experiments on Quantinuum's 98-qubit trapped-ion Helios system, with QAOA circuits acting on kernels of up to 78 qubits and 1016 two-qubit gates. While standalone QAOA fails to find the optimal solution for two of the largest indices (S&P 100 and Nikkei 225), qReduMIS achieves success probabilities of $0.40$ and $0.95$, respectively, with average approximation ratios $\geq 0.96$ across all four indices. We perform a systematic benchmark on the Quantinuum H2-1 noisy emulator over 73 asset correlation graphs of varying size showing that, for $p=2$ QAOA layers, the optimal time-to-solution scaling exponent of qReduMIS is $3.2$ times smaller than that of standalone QAOA.

quant-ph↗

arXiv2026

A Practical Post-Quantum Distributed Ledger Protocol for Financial Institutions

Traditional financial institutions face inefficiencies that can be addressed by distributed ledger technology. However, a primary barrier to adoption is the privacy concerns surrounding publicly available transaction data. Existing private protocols for distributed ledger that focus on the Ring-CT model are not suitable for adoption for financial institutions. We propose a post-quantum, lattice-based transaction scheme for encrypted ledgers which better aligns with institutions' requirements for confidentiality and audit-ability. The construction leverages various zero-knowledge proof techniques, and introduces a new method for equating two commitment messages, without the capability to open one of the commitment during the re-commitment. Subsequently, we build a publicly verifiable transaction scheme that is efficient for single or multi-assets, by introducing a new compact range-proof. We then provide a security analysis of it. The techniques used and the proofs constructed could be of independent interest.

cs.CR↗

arXiv2026

Quantum Speedups for Derivative Pricing Beyond Black-Scholes

This paper explores advancements in quantum algorithms for derivative pricing of exotics, a computational pipeline of fundamental importance in quantitative finance. For such cases, the classical Monte Carlo integration procedure provides the state-of-the-art provable, asymptotic performance: polynomial in problem dimension and quadratic in inverse-precision. While quantum algorithms are known to offer quadratic speedups over classical Monte Carlo methods, end-to-end speedups have been proven only in the simplified setting over the Black-Scholes geometric Brownian motion (GBM) model. This paper extends existing frameworks to demonstrate novel quadratic speedups for more practical models, such as the Cox-Ingersoll-Ross (CIR) model and a variant of Heston's stochastic volatility model, utilizing a characteristic of the underlying SDEs which we term fast-forwardability. Additionally, for general models that do not possess the fast-forwardable property, we introduce a quantum Milstein sampler, based on a novel quantum algorithm for sampling L\'evy areas, which enables quantum multi-level Monte Carlo to achieve quadratic speedups for multi-dimensional stochastic processes exhibiting certain correlation types. We also present an improved analysis of numerical integration for derivative pricing, leading to substantial reductions in the resource requirements for pricing GBM and CIR models. Furthermore, we investigate the potential for additional reductions using arithmetic-free quantum procedures. Finally, we critique quantum partial differential equation (PDE) solvers as a method for derivative pricing based on amplitude estimation, identifying theoretical barriers that obstruct achieving a quantum speedup through this approach. Our findings significantly advance the understanding of quantum algorithms in derivative pricing, addressing key challenges and open questions in the field.

quant-ph↗

arXiv2025

Certified randomness amplification by dynamically probing remote random quantum states

Cryptography depends on truly unpredictable numbers, but physical sources emit biased or correlated bits. Quantum mechanics enables the amplification of imperfect randomness into nearly perfect randomness, but prior demonstrations have required physically co-located, loophole-free Bell tests, constraining the feasibility of remote operation. Here we realize certified randomness amplification across a network by dynamically probing large, entangled quantum states on Quantinuum's 98-qubit Helios trapped-ion quantum processor. Our protocol is secure even if the remote device acts maliciously or is compromised by an intercepting adversary, provided the samples are generated quickly enough to preclude classical simulation of the quantum circuits. We stream quantum gates in real time to the quantum processor, maintain quantum state coherence for $\approx 0.9$ seconds, and then reveal the measurement bases to the quantum processor only milliseconds before measurement. This limits the time for classical spoofing to 30 ms and constrains the location of hypothetical adversaries to a $4{,}500$ km radius. We achieve a fidelity of 0.586 on random circuits with 64 qubits and 276 two-qubit gates, enabling the amplification of realistic imperfect randomness with a low entropy rate into nearly perfect randomness.

quant-ph↗

arXiv2025

Realization of a Quantum Streaming Algorithm on Long-lived Trapped-ion Qubits

Large classical datasets are often processed in the streaming model, with data arriving one item at a time. In this model, quantum algorithms have been shown to offer an unconditional exponential advantage in space. However, experimentally implementing such streaming algorithms requires qubits that remain coherent while interacting with an external data stream. In this work, we realize such a data-streaming model using Quantinuum Helios trapped-ion quantum computer with long-lived qubits that communicate with an external server. We implement a quantum pair sketch, which is the primitive underlying many quantum streaming algorithms, and use it to solve Hidden Matching, a problem known to exhibit a theoretical exponential quantum advantage in space. Furthermore, we compile the quantum streaming algorithm to fault-tolerant quantum architectures based on surface and bivariate bicycle codes and show that the quantum space advantage persists even with the overheads of fault-tolerance.

quant-ph↗

arXiv2022

ST-FL: Style Transfer Preprocessing in Federated Learning for COVID-19 Segmentation

Chest Computational Tomography (CT) scans present low cost, speed and objectivity for COVID-19 diagnosis and deep learning methods have shown great promise in assisting the analysis and interpretation of these images. Most hospitals or countries can train their own models using in-house data, however empirical evidence shows that those models perform poorly when tested on new unseen cases, surfacing the need for coordinated global collaboration. Due to privacy regulations, medical data sharing between hospitals and nations is extremely difficult. We propose a GAN-augmented federated learning model, dubbed ST-FL (Style Transfer Federated Learning), for COVID-19 image segmentation. Federated learning (FL) permits a centralised model to be learned in a secure manner from heterogeneous datasets located in disparate private data silos. We demonstrate that the widely varying data quality on FL client nodes leads to a sub-optimal centralised FL model for COVID-19 chest CT image segmentation. ST-FL is a novel FL framework that is robust in the face of highly variable data quality at client nodes. The robustness is achieved by a denoising CycleGAN model at each client of the federation that maps arbitrary quality images into the same target quality, counteracting the severe data variability evident in real-world FL use-cases. Each client is provided with the target style, which is the same for all clients, and trains their own denoiser. Our qualitative and quantitative results suggest that this FL model performs comparably to, and in some cases better than, a model that has centralised access to all the training data.

eess.IV↗