The Financial Services Authority has signed a contract
with consulting firm Detica to help police the new Markets in
Financial Instruments Directive (MiFID).
The new intelligence product supplied by Detica is designed to
assist the FSA in the exercise of its supervisory and regulatory
powers under the new directive, which aims to help standardise the
financial services industry across Europe.
The new system will analyse trading in a diverse range of
financial instruments and provide the FSA with intelligence on
unusual and potentially unlawful activity, such as market abuse and
insider trading.
Detica has already begun work with the FSA on the product, and
the final contract could be worth about £17m over seven years, with
the majority of the money spent over the first three years.
The new product will analyse patterns of trading in real time.
In addition, Detica will be delivering an off-line forensic
analysis product to detect hidden and potentially illegal patterns
of trading that develop over extended time periods, using its own
Netreveal technology, an intelligence tool developed in-house.
The Netreveal product was recently implemented by the UK's new
Insurance Fraud Bureau to detect organised insurance claims
fraud.
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