
Sumitomo Mitsui Banking Corporation (&#34;SMBC&#34;) and Toshiba Corporation (&#34;Toshiba&#34;) today announced the joint development of the SMBC/TOSHIBA Quantum Driven Diversified Japan Equity Index and the SMBC/TOSHIBA Quantum

Sumitomo Mitsui Banking Corporation ("SMBC") and Toshiba Corporation ("Toshiba") today announced the joint development of the <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.spglobal.com%2Fspdji%2Fen%2Fcustom-indices%2Fsmbc-toshiba%2Fsmbc-toshiba-quantum-driven-diversified-japan-equity-index%2F&amp;esheet=54537489&amp;newsitemid=20260519448161&amp;lan=en-US&amp;anchor=SMBC%2FTOSHIBA+Quantum+Driven+Diversified+Japan+Equity+Index&amp;index=1&amp;md5=943f167de60664bee9596a5cb609ef69" shape="rect">SMBC/TOSHIBA Quantum Driven Diversified Japan Equity Index</a> and the <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.spglobal.com%2Fspdji%2Fen%2Fcustom-indices%2Fsmbc-toshiba%2Fsmbc-toshiba-quantum-driven-diversified-us-equity-index%2F&amp;esheet=54537489&amp;newsitemid=20260519448161&amp;lan=en-US&amp;anchor=SMBC%2FTOSHIBA+Quantum+Driven+Diversified+U.S.+Equity+Index&amp;index=2&amp;md5=4511b200c168ee275520cbe43eb838df" shape="rect">SMBC/TOSHIBA Quantum Driven Diversified U.S. Equity Index</a>, new equity indices realized with advanced quantum-driven technologies. Collectively, the indices are referred to as "SMBC/TOSHIBA Quantum Diversified" (the "Indices").

This press release features multimedia. View the full release here: <a xmlns="http://www.w3.org/1999/xhtml" href="https://www.businesswire.com/news/home/20260519448161/en/" rel="nofollow">https://www.businesswire.com/news/home/20260519448161/en/</a><div xmlns="http://www.w3.org/1999/xhtml" id="bwbodyimg" style="width: 480px; float:left; padding-left:0px; padding-right:20px; padding-top:0px; padding-bottom:0px;"><img xmlns="http://www.w3.org/1999/xhtml" src="https://mms.businesswire.com/media/20260519448161/en/2807850/4/SBM02.jpg" alt="Toshiba's Simulated Bifurcation Machine"></img>Toshiba's Simulated Bifurcation Machine</div>
1. Background and Objectives
 Equity investment is central to asset management, but it also carries the ever-present risk of abrupt and substantial market fluctuations driven by geopolitical developments, changes in economic policy, and other external factors. In uncertain markets, investors are constantly seeking innovations in risk diversification that can protect their assets from unexpected market shocks.


SMBC and Toshiba have together developed new Indices that combine SMBC's expertise in financial markets with Toshiba's advanced quantum-driven technologies. These Indices use solutions to large-scale combinatorial optimization problems to realize well diversified equity portfolios that are difficult to construct with traditional methodologies. They aim to maintain the benefits of diversification even during times of market volatility, and to contribute to effective risk mitigation.


2. Overview of the Indices
 The Indices use the constituent stocks of existing Japanese and U.S. equity indices as their pools of candidate securities, the universes they explore. Individual components for the Indices are selected quarterly through calculations made by the Simulated Bifurcation Machine, Toshiba's quantum-driven optimization computer. The weight given to an individual stock is determined based on its historical price volatility. Calculation of the Indices has started, with the end of 2015 as the base date.


3. Key Features of the Indices
 (1) Risk diversification through rigorous selection of low correlation stocks
 The Indices are constructed through an optimization process that selects a subset of stocks from the universe so as to keep correlations across constituent pairs low. By building a portfolio of stocks whose price movements are less likely to move in tandem, the Indices aims to preserve the benefits of diversification even during broad market downturns.


(2) Large-scale combinatorial optimization enabled by advanced quantum-driven technology
 Executing these calculations across a large universe is a challenge for conventional classical computers, due to the immense scale of potential combination patterns. However, it can be done with Toshiba's Simulated Bifurcation Machine, the technology underpinning the Indices.


(3) Practical Index design for real-world implementation
 The methodology powering the Indices is geared to actual fund management, and the aim is to use the capabilities of advanced technologies to provide investors with a diversified equity portfolio. This is done by adopting proprietary and practical calculation rules that consider the liquidity of constituent stocks, the need to contain the transaction costs of periodic rebalancing and other factors (joint patent application pending).


4. Roles of Each Company
 SMBC led the development of the Indices, using financial engineering expertise cultivated within its global market and treasury divisions to develop the calculation methodology. It will now promote diversified investment strategies based on the Indices to asset management companies.


Toshiba provides the Indices with a customized version of the quantum-driven optimization technology of the Simulated Bifurcation Machine. It also handles system maintenance and will execute the quarterly rebalancing calculations.


Daily calculation and distribution of the Indices will be done by S&amp;P Dow Jones Indices (S&amp;P DJI), one of the leading independent providers of global indices. S&amp;P DJI manages accurate adjustments of market data that provides the basis for corporate actions such as stock splits and dividend payments, and delivers transparent, reliable index data to the market.


5. Outlook
 Publication of the Indices marks the start of a collaborative initiative by SMBC and Toshiba. They will now move forward by promoting proposal activities that aim for broad utilization of the Indices in financial markets.


As a first step, they will start exploratory discussions with management firms on index funds, ETFs and other investment vehicles linked to the Indices. While the Indices are built on advanced computational technologies, value to investors can only be realized when they are used to develop financial products that offer investors in Japan and overseas practical diversification options.


Alongside new indices derived from the current methodology, SMBC and Toshiba will continue to pursue the application of advanced technologies in the financial sector, including quantum and quantum-driven technologies.


About SMBC Group
 SMBC Group is a top-tier global financial group. Headquartered in Tokyo and with a 400-year history, SMBC Group offers a diverse range of financial services, including banking, leasing, securities, credit cards, and consumer finance. The Group has more than 150 offices and 120,000 employees worldwide in nearly 40 countries. Sumitomo Mitsui Financial Group, Inc. (SMFG) is the holding company of SMBC Group, which is one of the three largest banking groups in Japan. SMFG's shares trade on the Tokyo, Nagoya, and ADRs on the New York (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/SMFG">SMFG</a>) stock exchanges.


About Toshiba
 For over 150 years, guided by its corporate philosophy, "Committed to People, Committed to the Future.," Toshiba Group has contributed to society through its business activities. Today, the Group continues to enhance its management structure, streamline operations, and invest in forward‑looking businesses in the energy, digital infrastructure, and electronic devices domains.
 Annual sales in fiscal year 2025 were 3.7 trillion yen, with 94,000 employees worldwide.
 Find out more on our <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.global.toshiba%2Fww%2Ftop.html&amp;esheet=54537489&amp;newsitemid=20260519448161&amp;lan=en-US&amp;anchor=website&amp;index=3&amp;md5=8496336815834349cbda33691d62186d" shape="rect">website</a> or follow us on <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.linkedin.com%2Fcompany%2Ftoshiba-corporation%2F&amp;esheet=54537489&amp;newsitemid=20260519448161&amp;lan=en-US&amp;anchor=LinkedIn&amp;index=4&amp;md5=b7a17e9b3a4e98121c0290d5ae645153" shape="rect">LinkedIn</a>.

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Toshiba Corporation
 Corporate Communications Office
 Daisuke Iguri/Chiati Wang
 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:media.relations@toshiba.co.jp" shape="rect">media.relations@toshiba.co.jp</a>

SMFG

SMBC and Toshiba Jointly Develop New Equity Indices Using Advanced Quantum-Driven Technologies

SMBC and Toshiba unveil quantum-driven diversified indices with ETF potential

<section class="insight" data-version="1">
 <section data-block="information">
 <h3>Information</h3>
 Sumitomo Mitsui Banking Corporation (&amp;#34;SMBC&amp;#34;) and Toshiba Corporation (&amp;#34;Toshiba&amp;#34;) today announced the joint development of the SMBC/TOSHIBA Quantum Driven Diversified Japan Equity Index and the SMBC/TOSHIBA Quantum
 </section>

 <section data-block="ai-summary-paragraph">
 <h3>AI Summary</h3>
 SMBC and Toshiba announced the development of the SMBC/TOSHIBA Quantum Diversified indices for US and Japanese equities, employing Toshiba&#039;s Simulated Bifurcation Machine to optimize diversification. S&amp;P Dow Jones Indices will handle daily calculation and data distribution. The partners aim to engage asset managers to create ETFs and funds tied to the indices, signaling potential new revenue streams for SMFG via index products.
 </section>

 <section data-block="ai-summary-bullets">
 <h3>Key Points</h3>
 <ul><li>SMBC and Toshiba launch quantum-driven diversified indices for US/Japan stocks.</li><li>Indices use Simulated Bifurcation Machine to select low-correlation securities.</li><li>S&amp;P Dow Jones Indices will daily calculate and distribute index data.</li><li>Exploratory talks with asset managers on ETFs linked to the indices.</li></ul>
 </section>

 <section data-block="companies-mentioned">
 <h3>Companies Mentioned</h3>
 <ul><li>Sumitomo Mitsui Banking Corporation (SMBC) (SMBC): Led index methodology; potential SMFG revenue via product licensing or distribution.</li><li>Toshiba Corporation (6502.T): Provides quantum-driven optimization tech; partner in index construction and maintenance.</li><li>S&amp;P Dow Jones Indices (S&amp;P DJI) (S&amp;P DJI): Handles daily index calculation and market data delivery for the new indices.</li><li>Sumitomo Mitsui Financial Group, Inc. (SMFG) (SMFG): Parent of SMBC; potential indirect upside from new index-related revenue streams.</li></ul>
 </section>

 <section data-block="category">
 <h3>Corporate Developments</h3>
 Category: Corporate Developments; fits as a strategic product/tech collaboration with potential near-to-mid-term revenue implications for SMFG via index-based offerings.
 </section>

 <section data-block="market-moving">
 <h3>Market-Moving</h3>
 <ul><li>Potential ETF/fund launches linked to the new SMBC/TOSHIBA indices could drive SMFG-related revenue.</li><li>SMFG stands to gain from any licensing or distribution fees tied to the indices.</li><li>Positive quantum-finance sentiment could lift valuation for SMFG if asset-management products scale.</li></ul>
 </section>

 <section data-block="key-facts">
 <h3>Key Facts</h3>
 <ul><li>SMBC and Toshiba announced the SMBC/TOSHIBA Quantum Diversified indices (Japan and US).</li><li>Indices select components quarterly via Toshiba&#039;s Simulated Bifurcation Machine; base date 2015.</li><li>Daily calculation and distribution to be run by S&amp;P Dow Jones Indices (S&amp;P DJI).</li><li>Outlook: exploratory discussions with management firms on ETFs and investment vehicles.</li><li>Toshiba FY2025 annual sales: ¥3.7 trillion; 94,000 employees.</li></ul>
 </section>

 <section data-block="trading-thesis">
 <h3>Trading Thesis</h3>
 Bullish for SMFG over 12–24 months if index-product monetization via licensing/fees materializes.
 </section>
</section>



Sumitomo Mitsui Banking Corporation ("SMBC") and Toshiba Corporation ("Toshiba") today announced the joint development of the <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.spglobal.com%2Fspdji%2Fen%2Fcustom-indices%2Fsmbc-toshiba%2Fsmbc-toshiba-quantum-driven-diversified-japan-equity-index%2F&amp;esheet=54537489&amp;newsitemid=20260519448161&amp;lan=en-US&amp;anchor=SMBC%2FTOSHIBA+Quantum+Driven+Diversified+Japan+Equity+Index&amp;index=1&amp;md5=943f167de60664bee9596a5cb609ef69" shape="rect">SMBC/TOSHIBA Quantum Driven Diversified Japan Equity Index</a> and the <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.spglobal.com%2Fspdji%2Fen%2Fcustom-indices%2Fsmbc-toshiba%2Fsmbc-toshiba-quantum-driven-diversified-us-equity-index%2F&amp;esheet=54537489&amp;newsitemid=20260519448161&amp;lan=en-US&amp;anchor=SMBC%2FTOSHIBA+Quantum+Driven+Diversified+U.S.+Equity+Index&amp;index=2&amp;md5=4511b200c168ee275520cbe43eb838df" shape="rect">SMBC/TOSHIBA Quantum Driven Diversified U.S. Equity Index</a>, new equity indices realized with advanced quantum-driven technologies. Collectively, the indices are referred to as "SMBC/TOSHIBA Quantum Diversified" (the "Indices").

This press release features multimedia. View the full release here: <a xmlns="http://www.w3.org/1999/xhtml" href="https://www.businesswire.com/news/home/20260519448161/en/" rel="nofollow">https://www.businesswire.com/news/home/20260519448161/en/</a><div xmlns="http://www.w3.org/1999/xhtml" id="bwbodyimg" style="width: 480px; float:left; padding-left:0px; padding-right:20px; padding-top:0px; padding-bottom:0px;"><img xmlns="http://www.w3.org/1999/xhtml" src="https://mms.businesswire.com/media/20260519448161/en/2807850/4/SBM02.jpg" alt="Toshiba's Simulated Bifurcation Machine"></img>Toshiba's Simulated Bifurcation Machine</div>
1. Background and Objectives
 Equity investment is central to asset management, but it also carries the ever-present risk of abrupt and substantial market fluctuations driven by geopolitical developments, changes in economic policy, and other external factors. In uncertain markets, investors are constantly seeking innovations in risk diversification that can protect their assets from unexpected market shocks.


SMBC and Toshiba have together developed new Indices that combine SMBC's expertise in financial markets with Toshiba's advanced quantum-driven technologies. These Indices use solutions to large-scale combinatorial optimization problems to realize well diversified equity portfolios that are difficult to construct with traditional methodologies. They aim to maintain the benefits of diversification even during times of market volatility, and to contribute to effective risk mitigation.


2. Overview of the Indices
 The Indices use the constituent stocks of existing Japanese and U.S. equity indices as their pools of candidate securities, the universes they explore. Individual components for the Indices are selected quarterly through calculations made by the Simulated Bifurcation Machine, Toshiba's quantum-driven optimization computer. The weight given to an individual stock is determined based on its historical price volatility. Calculation of the Indices has started, with the end of 2015 as the base date.


3. Key Features of the Indices
 (1) Risk diversification through rigorous selection of low correlation stocks
 The Indices are constructed through an optimization process that selects a subset of stocks from the universe so as to keep correlations across constituent pairs low. By building a portfolio of stocks whose price movements are less likely to move in tandem, the Indices aims to preserve the benefits of diversification even during broad market downturns.


(2) Large-scale combinatorial optimization enabled by advanced quantum-driven technology
 Executing these calculations across a large universe is a challenge for conventional classical computers, due to the immense scale of potential combination patterns. However, it can be done with Toshiba's Simulated Bifurcation Machine, the technology underpinning the Indices.


(3) Practical Index design for real-world implementation
 The methodology powering the Indices is geared to actual fund management, and the aim is to use the capabilities of advanced technologies to provide investors with a diversified equity portfolio. This is done by adopting proprietary and practical calculation rules that consider the liquidity of constituent stocks, the need to contain the transaction costs of periodic rebalancing and other factors (joint patent application pending).


4. Roles of Each Company
 SMBC led the development of the Indices, using financial engineering expertise cultivated within its global market and treasury divisions to develop the calculation methodology. It will now promote diversified investment strategies based on the Indices to asset management companies.


Toshiba provides the Indices with a customized version of the quantum-driven optimization technology of the Simulated Bifurcation Machine. It also handles system maintenance and will execute the quarterly rebalancing calculations.


Daily calculation and distribution of the Indices will be done by S&amp;P Dow Jones Indices (S&amp;P DJI), one of the leading independent providers of global indices. S&amp;P DJI manages accurate adjustments of market data that provides the basis for corporate actions such as stock splits and dividend payments, and delivers transparent, reliable index data to the market.


5. Outlook
 Publication of the Indices marks the start of a collaborative initiative by SMBC and Toshiba. They will now move forward by promoting proposal activities that aim for broad utilization of the Indices in financial markets.


As a first step, they will start exploratory discussions with management firms on index funds, ETFs and other investment vehicles linked to the Indices. While the Indices are built on advanced computational technologies, value to investors can only be realized when they are used to develop financial products that offer investors in Japan and overseas practical diversification options.


Alongside new indices derived from the current methodology, SMBC and Toshiba will continue to pursue the application of advanced technologies in the financial sector, including quantum and quantum-driven technologies.


About SMBC Group
 SMBC Group is a top-tier global financial group. Headquartered in Tokyo and with a 400-year history, SMBC Group offers a diverse range of financial services, including banking, leasing, securities, credit cards, and consumer finance. The Group has more than 150 offices and 120,000 employees worldwide in nearly 40 countries. Sumitomo Mitsui Financial Group, Inc. (SMFG) is the holding company of SMBC Group, which is one of the three largest banking groups in Japan. SMFG's shares trade on the Tokyo, Nagoya, and ADRs on the New York (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/SMFG">SMFG</a>) stock exchanges.


About Toshiba
 For over 150 years, guided by its corporate philosophy, "Committed to People, Committed to the Future.," Toshiba Group has contributed to society through its business activities. Today, the Group continues to enhance its management structure, streamline operations, and invest in forward‑looking businesses in the energy, digital infrastructure, and electronic devices domains.
 Annual sales in fiscal year 2025 were 3.7 trillion yen, with 94,000 employees worldwide.
 Find out more on our <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.global.toshiba%2Fww%2Ftop.html&amp;esheet=54537489&amp;newsitemid=20260519448161&amp;lan=en-US&amp;anchor=website&amp;index=3&amp;md5=8496336815834349cbda33691d62186d" shape="rect">website</a> or follow us on <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="https://cts.businesswire.com/ct/CT?id=smartlink&amp;url=https%3A%2F%2Fwww.linkedin.com%2Fcompany%2Ftoshiba-corporation%2F&amp;esheet=54537489&amp;newsitemid=20260519448161&amp;lan=en-US&amp;anchor=LinkedIn&amp;index=4&amp;md5=b7a17e9b3a4e98121c0290d5ae645153" shape="rect">LinkedIn</a>.

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Toshiba Corporation
 Corporate Communications Office
 Daisuke Iguri/Chiati Wang
 <a xmlns="http://www.w3.org/1999/xhtml" rel="nofollow" href="mailto:media.relations@toshiba.co.jp" shape="rect">media.relations@toshiba.co.jp</a>

SMBC and Toshiba announced the development of the SMBC/TOSHIBA Quantum Diversified indices for US and Japanese equities, employing Toshiba's Simulated Bifurcation Machine to optimize diversification. S&P Dow Jones Indices will handle daily calculation and data distribution. The partners aim to engage asset managers to create ETFs and funds tied to the indices, signaling potential new revenue streams for SMFG via index products.

SMBC and Toshiba Jointly Develop New Equity Indices Using Advanced Quantum-Driven Technologies

AI Summary

Sentiment Rationale

Trading Thesis

Market-Moving

Key Facts

Companies Mentioned

Corporate Developments

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