FTB-C000160 / Evidence concept

Index Methodology

An index methodology is the governed rule set defining an index's objective, selection, weighting, calculation, maintenance, and review.

Also known asindex rulebookbenchmark methodology

Intermediate 40 linked topicsPublished

Definitions

In plain terms

It is the authoritative explanation of what the index measures and how data and events become index results.

Technical

A complete methodology identifies scope, universe, data sources, eligibility, weighting, calculation, return variants, corporate actions, reviews, discretion, errors, changes, and cessation.

Scope

A marketing summary or current constituent list is not a complete methodology.

Examples

  • A governed index record identifies index methodology with its applicable methodology version, effective time, source, and units.

Common misconceptions

  • Index Methodology does not have one universal implementation without the named index methodology, data cutoff, and governance context.

Concept relationships

Related

Where this concept is used

Tutorials planned

These catalogued topics use this concept, but their complete build has not shipped yet.

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Evidence and governance

  1. Principles for Financial Benchmarks International Organization of Securities Commissions · official standard

    Supports: preferred label, short definition, technical definition

    Limits: Principles are not an index calculation formula, a substitute for product methodology, or a complete statement of applicable law.

  2. Fintech Builder Glossary Definition Contract The Fintech Builder · internal governed contract

    Supports: variant distinction

    Limits: Defines governed platform behavior rather than claiming these policies are universally prescribed by external McClellan methodology.

Reviewed by
Last reviewed
2026-07-27
Next review
2027-07-27
Record status
published
Written by

Fintech engineer building market-data and financial systems, and the author of every article, glossary record, and reference implementation on The Fintech Builder.