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. |