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"Dreyfuss    NEW YORK, Aug 8 (Reuters) - An error by a U.S.-based traderat RBS Securities caused a sharp and unexpected rise in the euroagainst the Swiss franc on Monday, a spokesman for the bank toldReuters.    The transaction caused a stir because it triggered a wave ofcomputer-generated, or algorithmic trades from other banks. Ittook place on the EBS foreign exchange platform and brieflypushed the euro up near a five-month high against the Swissfranc.    The mistake occurred amid heightened concern over marketmishaps after computer trading gone awry in the U.S. stockmarket nearly caused Knight Capital Group Inc to gounder. However, an RBS spokesman said the incident was containedwith quick action.    &amp;quot;It was immediately spotted and immediately corrected.&amp;quot; Thespokesman added that &amp;quot;there was no client money involved.&amp;quot;    The spokesman, however, declined to comment on whether RBSlost or gained money on the trade.    EBS daily charts showed that the euro surged to 1.20928 francs from around 1.2015 within three minutes (2012 GMTto 2015 GMT) on Monday as the algorithmic orders were executed.    The euro soon dropped back down and was at 1.2014 francslate on Wednesday, continuing to hold just above the SwissNational Bank-imposed floor of 1.20 francs.    When the incident happened, traders had speculated that itwas a faulty algorithmic system at RBS that caused the run-up inthe euro, although that turned out to be not the case.    &amp;quot;RBS algo went berserk,&amp;quot; said one UK-based trader at thetime it happened.    Another trader, who spoke to Reuters on Monday, had theimpression that an RBS algo took euro/Swiss franc from the1.2015 level to the 1.2050 bid, and then the U.S. algorithmicsystems took over.      As a result of the spike in euro/Swiss, there was a lot ofconfusion as to whether the high of 1.20928 francs was valid.That prompted EBS to issue a statement to traders late onMonday.    &amp;quot;Given the nature of the move, there was a lot of dispute asto what the exact high was with different shops calling itanything from 1.2020 to 1.2067,&amp;quot; a trader said.    EBS said that the euro spike against the Swiss franc lateMonday was valid and that the high print of 1.20928 would stand.    It was a rare dose of activity for a pair that for monthshas traded in a narrow range due to the SNB floor.    The SNB in September set a floor of 1.20 francs against theeuro, which means that euro/Swiss franc pair cannot go belowthat level without meeting stiff resistance from the centralbank.     The SNB set this limit in September after the euro zonecrisis prompted investors to seek a haven in the franc. A strongfranc has hurt Swiss exporters.     &amp;quot;That was quite a bit of excitement on euro/Swiss franc onMonday,&amp;quot; said Michael Woolfolk, senior currency strategist, atBNY Mellon In New York. &amp;quot;From the price behavior of the lastseveral months, Monday's move was certainly noteworthy.&amp;quot; (Additional reporting by Jessica Mortimer in London; Editing byKenneth Barry)"^^<http://www.w3.org/2001/XMLSchema#string>
<http://in.reuters.com/article/markets-forex-franc-idINL2E8J79WE20120808>