Flash-Crash Risks Are Back as Japan Shutters for Six-Day Holiday
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Pedestrians are reflected in an electronic stock board outside a security firm in Tokyo.
Photographer: Tomohiro Ohsumi/Getty ImagesThis article is for subscribers only.
As Japan enters a six-day New Year break, a sense of anxiety over the possibility of another flash crash is gripping currency traders.
The Financial Futures Association of Japan has already warned of market instability as the holidays create a liquidity vacuum. Meanwhile, importers are preparing to deal with a potential repeat of the turmoil that took place on Jan. 3 this year, when the yen gyrated wildly and surged against its peers.