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Reference.org
Transaction cost analysis
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<p>Transaction cost analysis (TCA), as used by institutional investors, is defined by the <i><a href="/facts/Financial_Times/0ndae2YU">Financial Times</a></i> as "the study of trade prices to determine whether the trades were arranged at favourable prices – low prices for purchases and high prices for sales". It is often split into two parts – pre-trade and post-trade. Recent regulations, such as the European <a href="/facts/Markets_in_Financial_Instruments_Directive/GxSK4P3v">Markets in Financial Instruments Directive</a>, have required institutions to achieve best execution. </p>