Detica Group plc announces that it has signed a letter of intent with the Financial Services Authority.
Detica Group plc ("Detica" or "the Group"), the business and technology consulting firm, today announces that it has signed a letter of intent with the Financial Services Authority ("FSA") to deliver a new intelligence solution designed to assist the FSA in the exercise of its supervisory and regulatory powers under the new Markets in Financial Instruments Directive (MiFID). 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. The Group has already begun work with the FSA and, if the FSA exercises its option to continue, the final contract is expected to be valued at approximately £17 million over a seven year period with the majority of the revenue recognised over the first three financial years.
The opportunity, won after a thorough and competitive tendering process, plays to Detica's core strengths in "information intelligence" and its significant experience in the Capital Markets sector that has been developed both organically and through the acquisitions of Evolution Consulting Group and m.a.partners over the past 12 months.
The new solution to be developed by Detica will analyse patterns of trading in real-time. In addition, Detica will be delivering an off-line, forensic analysis solution to detect hidden and potentially illegal patterns of trading that develop over extended time periods using its own NetReveal technology, a unique intelligence tool developed in-house by the Group's Technology Innovation Group. The NetReveal product was also implemented recently by the UK's new Insurance Fraud Bureau to detect organised insurance claims fraud.
Commenting on this contract win Dr Tom Black, CEO of Detica, said today: "This is a significant opportunity for Detica and is indicative of the way we can combine our expertise in information intelligence with strong capital markets experience and unique intellectual property in the form of NetReveal.
The UK, and more specifically London, has built its reputation as a global financial centre based on the integrity of its markets and we are delighted to be supporting the FSA in its vital role as the regulator of these markets."
