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I have 3,000 tickers that I would like to turn into a weighted index, viewable by the general public by going to Yahoo and typing in ^PSNDX (for example) or go to E-Trade and enter something similar.

Do I need to work with an exchange to "host" the ticker?

Would I send that "host" a feed of the index's activity which would then be linked to the ticker?

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    $\begingroup$ forget about it $\endgroup$ – Svisstack Feb 6 '15 at 14:53
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The indexing business is very big, and is not cheap and easy for a small participant to enter it. Disseminating an index requires to pay the subscription to different data providers like Bloomberg, Reuters, Yahoo, etc plus having the right infrastructure in terms of systems, calculation of the index, your own company setup, etc

If you are interested in doing that, I recommend you to speak to them.

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  • $\begingroup$ Pay what subscription? Why would I pay Yahoo to have my own index? I understand markets well enough, but have never ventured in this direction. My guess is that an exchange needs to host the ticker and that is the nature of my question. Your answer does not provide much help. $\endgroup$ – dscher Feb 8 '15 at 18:19
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    $\begingroup$ My answer tells you how to do what you want (in summary: speak with the data providers, each one has its own conditions, and the barriers of entry are relatively high). I am pretty sure about the costs part, specially with Bloomberg and Reuters, which are financial data providers for professionals. I used to publish indices myself. With Yahoo, given that is a financial data provider for retail, probably it is even harder in terms of conditions. $\endgroup$ – Escachator Feb 8 '15 at 20:26
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    $\begingroup$ "Why would I pay Yahoo to have my own index?" To make it public and available. The owners of the indices pay to the different data providers to make them public. How the index companies make money? There are different business models: they can charge the funds which use their index as benchmark (this is for example what MSCI does), or they can charge people who want to access the index composition (meaning the underlying basket), or they can build and maintain a bespoke index as requested by an entity. $\endgroup$ – Escachator Feb 8 '15 at 20:27
  • $\begingroup$ Also beware of survivorship bias - you can't create back-history for an index without including delisted securities. $\endgroup$ – Norgate Data Apr 9 '15 at 6:15
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Maybe a Social Trading platform would be what you're looking for? They allow you to put together a portfolio for the world to view. Some even make it tradeable, usually as ETF (which carries the usual fees for investors, which are then split between you and the provider).

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