The UK Financial Services Authority has signed a £16.6 million, seven-year contract with Detica for an intelligence system to support implementation of the new Markets in Financial Instruments Directive (Mifid).

Mifid comes into force in November, bringing a series of new compliance requirements for financial institutions and new supervisory and regulatory powers for the FSA.

The Detica system will be used to analyze patterns of trading in real-time. The firm will also supply an offline forensic analysis system to detect hidden -- and potentially illegal -- patterns of trading over longer periods of time.

The system will use Detica’s NetReveal technology, which is also being used by the Insurance Fraud Bureau under a £3.4 million managed fraud detection service contract signed with Detica in 2005.