By Eva Szalay
An abrupt surge in the Swiss franc against the dollar on the EBS
trading system late Monday is a valid trade, and not the result of a
data glitch on the part of the ICAP PLC-owned (IAP.LN) system, a
person familiar with the matter told Dow Jones Newswires Tuesday.
The dollar plunged 0.7% against the Swiss franc late Monday, trading
as low as CHF0.9666 from the prevailing market rate of around
CHF0.9736. The exchange rate immediately snapped back.
The counterparties in the trade may agree to annul it, the person
familiar with the matter said. For now, it remains a valid transaction
that is still visible in EBS's historical prices.
Monday's unusual price action comes one week after a similar dive in
the so-called Swissie against the euro, which was caused by a trading
error at the Royal Bank of Scotland (RBS).
At 1358 GMT Tuesday, the dollar traded at CHF0.9736, while the euro
was at CHF1.2011.
Write to Eva Szalay at eva.szalay@dowjones.com
(END) Dow Jones Newswires
August 14, 2012 10:37 ET (14:37 GMT)
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