Detica equips Turquoise to fight financial market abuse

15 September 2008

Detica Group plc (DCA.L), the business and technology consultancy, has successfully developed a state-of-the art market surveillance system for Turquoise, the new multi-lateral trading facility that serves as an alternative to the London Stock Exchange (LSE). Detica’s ground-breaking technology will provide an instant bird’s-eye view of the market to help capture illegal trading and root out market irregularities.

Detica’s delivery of this technology comes at a time when incidents of market abuse have been particularly rife and damaging to an already uncertain marketplace. Incidents such as the rogue trading scandal at Société Générale in January this year, and the Financial Services Authority’s (FSA) recent fining of Credit Suisse due to market abuse in September, stand out as particularly high profile examples.

Detica played a crucial role in enabling Turquoise to pass the FSA’s tough regulatory requirements. Simon Asplen-Taylor, Head of Market and Regulatory Services at Detica, said: “We are proud to have been involved in facilitating the success of Turquoise, a trading platform which is destined to become a household name like the London Stock Exchange. The introduction of Turquoise as a new trading venue will help improve the resilience of the UK marketplace.”

During the development, Detica also designed and built a special-purpose market surveillance accelerator which is unique in its ability to enable the solution to keep pace with rapid changes in the market. “The market surveillance system we have developed is truly groundbreaking” concludes Asplen-Taylor. “It cuts through market noise to deliver, in real time, a clear picture of what is really happening and the unusual events that are occurring. As an industry initiative, Turquoise provides a real opportunity for investment banks to crack down on fraudulent activity together.”

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