| The BMC would give additional security to traders from situations such as the flash crash in the US market. The Forward Markets Commission (FMC), the commodity derivatives markets regulator, has levied base minimum capital (BMC) for algo members five times higher than that of normal manual members. Until now, minimum base capital was determined by individual exchanges based on the membership criteria.
Interestingly, FMC has kept both the Multi Commodity Exchange (MCX) and the National Commodity & Derivatives Exchange (NCDEX) in the same category with Rs 50 lakh of BMC requirement for algo traders. Against that, the normal manual members should require to have a BMC of Rs 10 lakh...........................................Full Article: Source
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