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Titus Chang's avatar

Love these historical pieces, very eye opening

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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.

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Marc Rubinstein's avatar

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

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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

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