From the Code · Episode 1 · Wed 7 Oct 2026
In Japan the stop-out is law.
Monday 12 October is Sports Day: Tokyo’s banks are out. The rule that closes retail FX positions is not.
In Japan a retail FX firm must close a position at the agreed loss level: “without exception”, says the regulator. The loss-cut level is set by contract; running it is the obligation.
3 January 2019, a Japanese bank holiday, no material news: the yen rose 3% on the dollar in about 30 seconds. On a chart: 2 January 2019, 23:36 Amsterdam (9:36 am Sydney on the 3rd). The Reserve Bank of Australia also recorded the Australian dollar around 7% lower against the yen.
The banks get the day off. The law works. Not your provider’s rule. Still your market.
Watch for · Sun 11 Oct · 23:00 Amsterdam
Yen pairs reopen without Tokyo’s banks (Sports Day). Read your provider’s 12 October notice: closed symbols, liquidity. Historical: a gap can go either way.
Stop-out by law or by house policy: which protects better?
Sources
Reserve Bank of Australia, Statement on Monetary Policy, February 2019, Box B · Financial Futures Association of Japan, loss-cut rules (Financial Instruments and Exchange Act Art. 40(2); Cabinet Office Ordinance on Financial Instruments Business Art. 123; FSA supervisory guidelines; in force since August 2009) · Cabinet Office of Japan, national holidays 2026. Read 7 October 2026. Times in Amsterdam (CEST); London one hour earlier, Johannesburg the same, Lagos one hour earlier. Mechanism, not direction.
