The Leader in CFA® Review
Learning Outcome Statements
| a. explain the components of execution costs, including explicit and implicit costs; |
| b. calculate and interpret effective spreads and VWAP transaction cost estimates; |
| c. describe the implementation shortfall approach to transaction cost measurement; |
| d. describe factors driving the development of electronic trading systems; |
| e. describe market fragmentation; |
| f. distinguish among types of electronic traders; |
| g. describe characteristics and uses of electronic trading systems; |
| h. describe comparative advantages of low-latency traders; |
| i. describe the risks associated with electronic trading and how regulators mitigate them; |
| j. describe abusive trading practices that real-time surveillance of markets may detect. |