Israeli authorities are investigating allegations of insider trading prior to a Hamas attack.
Research by US law professors found evidence of significant short-selling of shares leading up to the attack.
The value of the MSCI Israel ETF fell by 6.1% on October 11th, the first day the American market was open after the attack.
Israeli authorities are currently investigating allegations that some investors may have had prior knowledge of a Hamas attack and used this information to profit from stock market transactions. This follows a research study conducted by professors from New York University and Columbia University, which found a significant increase in short-selling of shares leading up to the attack.
The researchers identified a sharp increase in trading in risky short-dated options on Israeli companies just before the attacks. They also noted that the value of the MSCI Israel Exchange Traded Fund (ETF) fell by 6.1% on October 11th, the first day the American market was open after the attack. The study suggests that traders informed about the attacks profited from them, and this type of trading occurs during gaps in enforcement of legal prohibitions on informed trading.
However, the authors of the research caution against linking the trading activity directly to Hamas without further evidence. They emphasize that while the trading patterns are consistent with informed trading, more investigation is needed to establish a direct link. The Israeli securities authority has launched an investigation in response to these findings.
The study concludes that traders informed about the attacks profited from them, and this type of trading occurs during gaps in enforcement of legal prohibitions on informed trading.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(100%)
The article is straightforward and factual, with no apparent deception.
The authors of the research believe that traders informed about the attack profited from it, but caution against linking the trading activity to Hamas without further evidence.
A new working paper suggests that someone had advance knowledge of Hamas' attack on Israel on October 7th and made a small fortune by profiting from a crash in the Israeli stock market.