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Titus Chang's avatar

Love these historical pieces, very eye opening

karthik sundararaman's avatar

hi Marc, how does the provider of the index financially benefit? For example, S&P500 is an index which SPY tracks which in turn people invest in. How does value accrue to the index provider in this instance? thanks.

Marc Rubinstein's avatar

Whoever uses the index commercially, eg the ETF, has to pay licensing fees.

karthik sundararaman's avatar

Thats what I figured but wanted to confirm, thank you.

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Mar 10, 2021
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Marc Rubinstein's avatar

The stat is based on number of clearing houses rather than volume. Source is Graph 2 here - https://www.bis.org/publ/qtrpdf/r_qt1512.pdf