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Libor is a wholly different type of benchmark, how is it relevant here? Even the way it was manipulated is inapplicable for stock market indices. > The methodo
by conistonwater 9y ago
Libor is a wholly different type of benchmark, how is it relevant here? Even the way it was manipulated is inapplicable for stock market indices.
> The methodology is published, but largely defines eligibility; it isn't completely systematic. Even if it was, it'd still be liable to change (eg. changes to exclude some classes of shares from the float).
I do not understand the point you are trying to make here.
- achamayou 9y agoMy point is that the publisher of the index does have more discretion than you claim they do, they are not entirely passive and rules-driven. Even where they are, they do change the rules from time to time. They are also trying to please a number of people who depend on the index, not all of which are retail investors buying ETFs.
- conistonwater 9y agoBut passive doesn't mean that the rules never change, it's passive as opposed to active, not passive in the sense of static. There might be some kind of miscommunication here or something.