Lloyd's will become even more tightly regulated following the introduction of a new transaction monitoring system at the corporation, writes Alaric Nightingale.

The new Automatic Transaction Monitoring System (ATMS) can detect complex patterns in syndicate and broker transactions. It allows a comprehensive audit of the entire market, enhancing the investigating capabilities of the monitoring unit at Lloyd's.

One of the most intriguing aspects of the ATMS is the fact that it can reconstruct the last five years of transactions and contracts.

It does this by taking all the trading slips and working out what transactions and contracts they represented.

Searchbase, a London company that specialises in transaction monitoring, developed the system.

Searchbase's sales and marketing director Pat Geary said: “The system helps the monitoring unit to improve its capabilities. The system monitors and profiles different elements on the market.

“We are very excited about this technology, which will help keep Lloyd's at the forefront for regulation.”

Neither party would comment on how much implementation of the system had cost, but it is said to have been a “substantial investment” for Lloyd's.