A test trade that accidently sneaked into the live market on the EBS trading system was behind a mysterious plunge in the Swiss franc earlier this week, according to a Dow Jones news report.
Icap is conducting an investigation into the incident, but confirmed to DJ that "an incorrect price in [the euro against the Swiss franc] inadvertently entered the EBS live market due to a mapping error between the test- and production-trading environments."
The unexplained 0.5% spike in the price of the euro against the franc caused a flurry of activity on trading desks as dealers bought more euros to cover their positions.
An Icap spokesman has said that all trades will stand, irrespective of the foul up.
"The deals are good deals, regardless of the trigger," the spokesman told Dow Jones, adding that it is up to clients whether they choose to write off any transactions.