Press Release

Electronic Credit Trading Approaching Inflection Point in IG

Published

5 months ago

May 21, 2024

–News Direct–

The share of U.S. investment-grade (IG) bonds traded electronically is closing in on 50% this year. The mark is significant its a measure of the success of market makers, venues, and investors in bringing transparency, liquidity, and diverse electronic execution options to the world of corporate credit trading.

So, how did we get here? This shift was anything but accidental and did not happen overnight. Behavioral changes by market participants willing to embrace more electronification, the rise of automation and algorithmic trading, the introduction of new trading protocols, and even how these bonds trade have all contributed to this milestone.

While voice execution is still the primary choice for larger or more complex trades, were witnessing the creative uptake of diverse tools and emergent liquidity pools to manage an increasingly heavy load of credit trading volumes. As I noted in this December blog, a host of market players have, in their own ways, challenged traditional manual trading conventions to establish a vital role for electronic trading in the credit market. Now, as more and more market participants continue to embrace the benefits of electronification, weve reached an inflection point in investment-grade markets.

Growth of IG electronic trading

Consider this In 2013, just 8% of high-grade bonds and 2% of high-yield bonds outstanding traded electronically. Over the course of the next six years, electronic volume of high-grade bonds persistently edged higher, at an average of about 3% a year. With the onset of Covid and remote work a digitization accelerant of sorts for fixed income – the share of electronic trading in high-grade bonds increased more rapidly, from 25% in 2019 to about 45% today, according to data provided by Coalition Greenwich. In the past year alone, the share has jumped by 8%. Tradeweb, for our part, has been a strong contributor to this increased adoption, reporting a record 19.7% share of fully electronic U.S. high-grade TRACE in April 2024.

The overall volume of investment-grade trading, too, has reached record highs. In April, market-wide U.S. high-grade TRACE average daily volumes were up 50% year-over-year (YoY). The volume we see across IG has played out on our platform, too; in the first quarter of 2024, Tradeweb saw fully electronic U.S. high-grade average daily volumes rise 62% to $6.7 billion from the same period last year.

Some of this, of course, is situational. In the current interest rate climate, investment-grade bonds offer attractive relative value to high-yield and some other fixed income products. With the path of interest rates becoming less clear as the year progresses, institutional investors are trying to stay ahead of the Fed by repositioning their IG portfolios for whatever they believe lies ahead.

A paradigm shift

Still, something more fundamental is happening in terms of electronification. First, institutional investors have grown to rely on electronic trading for improved liquidity, price transparency, and efficiency. Instead of calling every dealer to trade, they can send out a request-for-quote (RFQ) and almost instantaneously get back multiple quotes. Theyre also exploring how to electronically trade large baskets of risk in a more efficient manner through Portfolio Trading.

Second, dealers right now are applying automation and algorithmic techniques to respond to trade requests and execute specific trades. The buyside is catching on to use of the technology, too. Thats increasing both the volume and velocity of high-grade trading.

Third, many firms have been slower to add resources to trade this asset class, despite the uptick in volumes. In response, organizations are taking a harder look at electronic trading for even their more complex trades and portioning some of their business out to electronic trading venues.

Lastly, and this is where Tradeweb comes in the protocols, platforms, and functionality we use to trade corporate credit are quickly expanding as automation and AI become more embedded in the electronic trading process and we innovate alongside clients to deliver increasingly advanced features.

The shifts weve seen play out in corporate bond markets both in terms of behavioral and structural market shifts wouldnt have been possible without the introduction of electronic protocols and tools, which have laid the foundation for these changes, and, therefore, have been vital to this progression.

Trading protocols the fundamentals

From the launch of the Trade Reporting and Compliance Engine (TRACE) more than two decades ago, to the development of sophisticated modeling techniques for pricing bonds in near real-time, greater price transparency and the increased diversification of electronic protocols have been leading electronic trading to this point.

To further illustrate this, we can look at RTX 3.03 03/52 as an example. Through April 2024, this bond went through several different electronic trading protocols on Tradeweb, such as portfolio trades, anonymous RFQs, dealer-to-dealer session-based trading and Rematch. By utilizing multiple different trading protocols, this bond, which only had a liquidity score of 7 on our platform (the maximum being 10), gained exposure to more potential bids and different pools of investors. This example illustrates how using different electronic protocols can encourage increased liquidity, velocity and trading efficiency in the corporate bond space at a pace unheard of a decade ago.

While corporate bond traders regularly favor the phone when doing a larger trade, they send out smaller trade sizes electronically because they can do this more efficiently. This trend of electronification and workflow automation of smaller trades similar to what we saw happen in equity markets has resulted in more participation, and, thus, more liquidity in IG markets. Were seeing this in our data on a global scale, too; in the first quarter of 2024, global credit Automated Intelligent Execution (AiEX) average daily trades increased by 70% year-over-year.

Tracking high-yields progression

Meanwhile, the share of high-yield bonds trading electronically remains stuck at about 30%. We can assume that some of the challenges associated with trading high-yield bonds are due to the characteristics of the bonds themselves. High-yield bond deals are often smaller and less liquid than those in the high-grade market, which creates challenges in price discovery/valuation. And credits are often stories requiring specialized knowledge of the issuer and a thorough understanding of their operations, which narrows the market of prospective trade partners.

Another key consideration for trading high-yield bonds is how they trade. High-yield bonds trade on price as compared to investment-grade bonds which trade on spread to a benchmark U.S. Treasury bond. Therefore, because of this tie-in to the U.S. Treasury market, investment-grade bonds are exposed to a number of intelligent hedging innovations and capabilities that foster more transparency and growth. For example, a significant driver of IG growth on the platform has been Tradewebs Net Spotting technology, which nets hedging activity across Tradeweb clients spotting simultaneously.

For high-yield bond trading to reach new heights in electronification, markets must continue to embrace electronic tools and protocols in different ways. While the rise of algorithmic trading and portfolio trading have been catalysts for the electronification of IG markets, we have yet to see this play out the same way in HY a more niche, opaque market. Moreover, an illiquid marketplace poses challenges for market makers who may be less inclined toward price transparency. Still, this market is ripe for more electronification, as advancements in data, algo pricing and technology encourage more efficiency.

Room to run

While the market is unlikely to abandon voice trading altogether, it will come to depend on technology more and more, in part because it allows those trading credit to offload quotidian trades to electronic venues and focus on those trades requiring a humans market guile and discretion. In the past five years alone, our markets have seen incredible growth and innovation in the IG markets, with HY following closely behind. I am optimistic about the opportunities that lie ahead in credit markets and look forward to the next five years.

About Tradeweb Markets

Tradeweb Markets Inc. (Nasdaq: TW) is a leading, global operator of electronic marketplaces for rates, credit, equities and money markets. Founded in 1996, Tradeweb provides access to markets, data and analytics, electronic trading, straight-through-processing and reporting for more than 50 products to clients in the institutional, wholesale and retail markets. Advanced technologies developed by Tradeweb enhance price discovery, order execution and trade workflows while allowing for greater scale and helping to reduce risks in client trading operations. Tradeweb serves more than 2,500 clients in more than 70 countries. On average, Tradeweb facilitated more than $1.5 trillion in notional value traded per day over the past four fiscal quarters. For more information, please go to www.tradeweb.com.

Forward-Looking Statements

This blog contains forward-looking statements within the meaning of the federal securities laws. Statements related to, among other things, our outlook and future performance, the industry and markets in which we operate, our expectations, beliefs, plans, strategies, objectives, prospects and assumptions and future events are forwardlooking statements. We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. These and other important factors, including those discussed under the heading Risk Factors in documents of Tradeweb Markets Inc. on file with or furnished to the SEC, may cause our actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements contained in this blog are not guarantees of future events or performance and future events, our actual results of operations, financial condition or liquidity, and the development of the industry and markets in which we operate, may differ materially from the forward-looking statements contained in this blog. In addition, even if future events, our results of operations, financial condition or liquidity, and events in the industry and markets in which we operate, are consistent with the forward-looking statements contained in this blog, they may not be predictive of events, results or developments in future periods. Any forward-looking statement that we make in this blog speaks only as of the date of such statement. Except as required by law, we do not undertake any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this blog.

Contact Details

Tradeweb Media Contact

Savannah Steele

+1 631-655-4225

Savannah.Steele@Tradeweb.com

Company Website

https://www.tradeweb.com/

View source version on newsdirect.com: https://newsdirect.com/news/electronic-credit-trading-approaching-inflection-point-in-ig-982354676

Tradeweb

COMTEX_452697822/2655/2024-05-21T13:58:58

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Press Release

ABR Electric Guides Homeowners on EV Charging and Electrical Panel Upgrades

Published

36 mins ago

October 26, 2024

Cloud PR Wire

ABR Electric, based in McKinney, TX, is addressing a growing issue for electric vehicle (EV) owners who are facing “nuisance tripping” with their home charging stations due to new requirements from the 2020 National Electrical Code (NEC). The updated code mandates Ground Fault Circuit Interrupter (GFCI) breakers for NEMA 14-50 outlets, commonly used for Level 2 EV chargers. While GFCI breakers are crucial for preventing electrical shocks, they can be overly sensitive, causing unnecessary trips that interrupt charging.The problem is particularly common when modern EV chargers like ChargePoint Home Flex perform self-tests or when small current leaks occur due to internal charger components. Environmental factors and installation errors, such as using mismatched breakers, can also contribute to the issue. This leaves homeowners frustrated when they wake up to discover their EV did not charge overnight.To resolve these challenges, ABR Electric recommends upgrading electrical panels to handle the increased load from EV chargers and comply with NEC requirements. Additionally, hardwiring the charger instead of using a plug-in setup can bypass the need for a GFCI breaker and prevent unnecessary tripping.James Adams, Owner and Master Electrician at ABR Electric, highlights the importance of upgrading electrical systems to ensure safe and reliable EV charging.

McKinney, Texas, United States, 26th Oct 2024 – As the electric vehicle (EV) market continues to grow, with brands like Tesla, Rivian, and Ford leading the charge, more homeowners are looking to install home EV charging stations. However, with the adoption of the 2020 National Electrical Code (NEC), EV owners may be facing new challenges—particularly nuisance tripping caused by GFCI (Ground Fault Circuit Interrupter) breakers, a required safety feature that protects against electrical shocks. ABR Electric, a trusted local electrical services company in Collin County, is helping customers understand these changes and find solutions to keep their EV charging stations running smoothly.

The updated National Electrical Code (NEC) now mandates GFCI (Ground Fault Circuit Interrupter) protection for NEMA 14-50 outlets, which are commonly used for Level 2 EV chargers. While this safety requirement is essential to prevent electrical shocks, it has introduced unexpected issues for many homeowners, particularly the problem of nuisance tripping. Nuisance tripping occurs when a GFCI breaker trips unnecessarily, often without a clear fault, leaving homeowners frustrated as they discover that their electric vehicle (EV) did not charge overnight. The issue is particularly prevalent when the charger is idle, causing the breaker to trip without any actual charging taking place.

This problem arises because GFCI breakers are designed to detect and prevent even minor ground faults, which, while crucial for safety, can be overly sensitive when paired with EV chargers. Modern EV chargers, such as the ChargePoint Home Flex, regularly perform self-tests to ensure proper functionality. During these tests, a small amount of current may leak, triggering the GFCI breaker and causing a trip. In addition, the internal components of the chargers, like EMI (Electromagnetic Interference) filters, can also produce minor leakage currents. When these currents combine, they may exceed the GFCI’s sensitivity threshold, resulting in an unnecessary trip.

Other contributing factors include installation errors, such as using a 60-amp GFCI breaker for a 50-amp NEMA 14-50 outlet, which can lead to improper protection and frequent tripping. Environmental conditions, such as moisture in outdoor installations or improper sealing, can further exacerbate the problem by triggering ground faults that don’t pose a real threat but still cause the breaker to trip.

In addition to these challenges, many homes are simply not equipped to handle the increased electrical load from EV charging stations. This makes an Electrical Panel upgrade a crucial step in ensuring safe, reliable charging at home. Upgrading your electrical panel allows for better power distribution and helps avoid potential hazards, such as overheating or tripped circuits.

Why Homeowners Should Consider an Electrical Panel Upgrade:

Increased Electrical Load Capacity: Modern EV chargers require higher amperage, which older panels may not be able to handle. Upgrading ensures your panel can safely support the increased demand.
Compliance with NEC Requirements: Upgrading your electrical panel helps meet the latest safety codes, including those related to GFCI protection for EV charging stations.
Improved Reliability: By upgrading, homeowners can reduce the risk of frequent trips and interruptions in power, ensuring a smoother, uninterrupted charging experience.
Enhanced Safety: An upgraded panel helps prevent overloading circuits, reducing the risk of electrical fires, overheating, and other safety concerns.
Future-Proofing: As more household appliances and systems transition to electric, upgrading your electrical panel prepares your home for future needs and technologies.

James Adams, Owner and Master Electrician at ABR Electric, explains: “We’ve seen this issue arise more frequently, especially with newer electric vehicles. Homeowners will plug in their car, expecting it to charge, but wake up to find the breaker tripped sometime during the night. It’s a real frustration, and it’s important that EV owners are aware of how the new code impacts their charging setup.”

In a recent video, Adams further discusses the challenges brought on by NEC Article 625.54, which requires GFCI breakers for EV charging circuits. “Until the 2020 code, you could use a regular breaker for a NEMA 14-50 plug, but now GFCI protection is required. The problem is, GFCI breakers can be too sensitive when used with some electric cars, causing these nuisance trips,” Adams says. “We’ve even run into older homes where you simply can’t install a GFCI breaker because the panel isn’t compatible.”

For homeowners in this situation, ABR Electric offers tailored solutions. Hardwiring the EV charger directly to the circuit, instead of using a plug-in configuration, can often eliminate the need for a GFCI breaker altogether. This can prevent unnecessary trips and ensure a more reliable charging experience.

“Hardwiring your charger is one of the best ways to avoid nuisance tripping,” says Adams. “If you’re smart enough to buy an electric car, you’re smart enough to think through these details and ensure that your charging setup works smoothly. The last thing you want is to wake up with an uncharged vehicle because of a tripped breaker.”

ABR Electric encourages Collin County residents who are considering EV home charging installations to consult with professional electricians to ensure proper installation and compliance with the latest NEC requirements. With over 20 years of experience, ABR Electric is committed to delivering safe and reliable electrical services, ranging from EV charging installations and ceiling fan installations to whole-house surge protection and electrical panel upgrades.

For more information or to schedule an appointment, contact ABR Electric at 214-690-1941 or visit our website below

About ABR Electric
ABR Electric is a locally owned and operated electrical services company serving McKinney, TX, and the surrounding Collin County area. Specializing in residential and commercial electrical services, ABR Electric is known for its expertise in EV charging installation, electrical panel upgrades, lighting installations, and more. With a commitment to quality, safety, and customer satisfaction, ABR Electric in Collin County is a trusted name in the electrical industry.

Media Contact

Organization: ABR Electric

Contact Person: James Adams

Website: https://abrelectric.com/

Email: Send Email

Contact Number: +12146901941

Address: 1971 Univ Business Dr #106, McKinney, TX 75071

City: McKinney

State: Texas

Country: United States

Release Id: 26102419041

The post ABR Electric Guides Homeowners on EV Charging and Electrical Panel Upgrades appeared on King Newswire. It is provided by a third-party content provider. King Newswire makes no warranties or representations in connection with it.

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Press Release

Purpose Path is Ranked as one of the Best Marketing Agency in Toronto

Published

1 hour ago

October 26, 2024

Cloud PR Wire

Toronto, Ontario, Canada, 26th Oct 2024 – Purpose Path, Canada’s leading digital marketing agency, is proud to announce its latest achievement: being recognized as the ‘Best Marketing Agency in Toronto’ by SEMrush. This accolade highlights Purpose Path’s continual dedication to empowering businesses through impactful marketing strategies.

SEMrush, one of the renowned SaaS platforms, uses a combination of tools and stringent evaluation protocols, including performance, success stories, reviews, and innovative strategies, to rank businesses for their services. This ranking for Purpose Path given by SEMrush is a testament to the agency’s relentless focus on helping businesses reach their digital marketing goals regardless of the competitive industry.

Leading the Digital World With Effective Marketing—Purpose Path stays ahead in the digital marketing world by offering comprehensive marketing services tailored to your business’s unique requirements. By leveraging a data-driven approach and top marketing tools, Purpose Path creates a future-proof marketing strategy that helps your brand stay ahead of the competition. Whether your goal is to rank within the top 3 on SERPs, unlock exponential traffic, enhance visibility, increase engagement, or more, Purpose Path promises to make your business thrive.

“Being ranked as the best marketing agency in Toronto by SEMrush is a massive victory for Purpose Path. This ranking validates our company’s mission of making a significant difference in marketing through unmatched innovation and customized solutions. With the same zest, Purpose Path and its team shall strive to create a brighter future for businesses in the digital world, “ Muhammad Abbas, CEO and Founder, Purpose Path.

About Purpose Path—Purpose Path is a full-service digital marketing company based in Canada. From SEO to SMM, web development to advertising, and more, Purpose Path offers extensive digital marketing services under a single roof. With ample experience in marketing and technology, Purpose Path comprehends industry insights and the ever-changing digital dynamics. Focusing on a results-driven approach and creative innovation, Purpose Path drives impactful outcomes through effective marketing solutions.

To learn more about our company, please visit our website at https://purposepath.ca/ or reach out to us through our email founders@purposepath.ca

Media Contact

Organization: Purpose Path

Contact Person: Muhammad Abbas

Website: https://purposepath.ca/

Email: founders@purposepath.ca

Contact Number: +16478678792

Address: 27 Roytec Rd – Unit 12, Vaughan, L4L 8Y2

City: Vaughan

Country: Canada

Release Id: 26102418997

The post Purpose Path is Ranked as one of the Best Marketing Agency in Toronto appeared on King Newswire. It is provided by a third-party content provider. King Newswire makes no warranties or representations in connection with it.

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Press Release

AquaVolt Solutions Launches Global Sustainable Development Initiative, Committing to Carbon Neutrality by 2030

Published

2 hours ago

October 26, 2024

Cloud PR Wire

Pioneering the Path to Carbon Neutrality

AquaVolt Solutions is dedicated to transforming the global energy landscape by pioneering solutions that significantly reduce carbon emissions. The company’s latest initiative, which is set to reduce its carbon footprint across all operations, will ensure AVS plays a key role in global efforts to achieve net-zero emissions.

Rashid bin Saeed, CEO of AquaVolt Solutions, emphasized the importance of responsible corporate behavior: “As the world continues to confront the existential threat of climate change, we recognize our responsibility as a leader in the renewable energy sector. Our commitment to becoming carbon neutral by 2030 is a significant milestone that underscores our dedication to sustainable development, ensuring a healthier planet for future generations.”

Key Pillars of the Initiative

Reducing Carbon Emissions in Operations: AVS will implement cutting-edge technologies to reduce carbon emissions throughout its facilities, production processes, and infrastructure. The company will transition all of its operational energy use to 100% renewable sources, including solar, wind, and hydropower.
Scaling Floating Solar Projects: Leveraging its leadership in floating solar infrastructure, AVS will continue to scale its global projects to offset carbon emissions in the energy sector. This will contribute directly to the reduction of reliance on fossil fuels and advance the world’s transition to clean energy.
Expanding Carbon Credit Programs: As part of its carbon neutrality roadmap, AVS will expand its existing carbon credit programs, allowing partners and clients to purchase verified credits that contribute to their own sustainability goals. By offering carbon offsets, AVS will foster collaboration in the fight against climate change.

About AquaVolt Solutions

AquaVolt Solutions (AVS) is a leading innovator in the renewable energy sector, specializing in floating solar panel infrastructure. Since its founding in 2016, AVS has been committed to driving the global transition to clean energy by developing and deploying advanced solar solutions that harness the power of water surfaces for sustainable energy production. AVS has collaborated on projects in multiple countries, generating clean energy to support local communities and contributing to global CO₂ emission reduction efforts.

For more information, please visit AquaVolt Solutions or contact:

Media Inquiries:

Company Name: AquaVolt Solutions

Contact Person: Nick William

Email: support@aquavoltsolutions.com

Website: https://aquavoltsolutions.com/

Sustainability Inquiries:

Email: corporatesustainability@aquavoltsolutions.com