US Researchers: “Investors may have had Prior Knowledge of Hamas Attack on Israel”
Introduction by Fabio Giuseppe Carlo Carisio – Gospa News Director
«Recent scholarship shows that informed traders increasingly disguise trades in economically linked securities such as exchange-traded funds (ETFs). Linking that work to longstanding literature on financial markets’ reactions to military conflict, we document a significant spike in short selling in the principal Israeli-company ETF days before the October 7 Hamas attack. The short selling that day far exceeded the short selling that occurred during numerous other periods of crisis, including the recession following the financial crisis, the 2014 Israel-Gaza war, and the COVID-19 pandemic».
We can read this in the study headlined “Trading on Terror?” and published on December, 4, 2023 by Robert J. Jackson, Jr., New York University School of Law, and Joshua Mitts, Columbia Law School through Papers SSRN managed by Elsevier scientific group.
This research relaunches enormous suspicions about an attack planned jointly by Hamas, which according to some latest information leaked from the intelligence world had already scheduled it for last spring, and the secret services of the powerful Israeli counterintelligence MOSSAD.
As denounced by the former CIA agent Philip Giraldi and some American parliamentarians, in fact, the 007 in Tel Aviv have many interconnections with the military wing of the Palestinian terrorist group of the Ezzedin al-Qassam Brigades and have ignored the warnings that came from Egypt about the imminent operation, facilitating its success which then served the Zionist Prime Minister Benjamin Netanyahu to carry out the genocide in Gaza for a long-planned exodus plan for the Palestinians from the Gaza Strip.
«Our findings suggest that traders informed about the coming attacks profited from these tragic events, and consistent with prior literature we show that trading of this kind occurs in gaps in U.S. and international enforcement of legal prohibitions on informed trading» concluded the researchers. More details below.
A new study detected a sharp uptick in trading activity on Tel Aviv and US stock exchanges before October 7
by Russia Today
Some traders may have been informed about the Hamas plan to attack Israel on October 7 and used that knowledge to make millions of dollars by short-selling Israeli securities, a study by US researchers published on Monday suggests.
Law professors Robert Jackson Jr. from New York University and Joshua Mitts of Columbia University examined trading in exchange-traded funds that invest in Israeli companies, as well as short-selling activity on the Tel Aviv Stock Exchange (TASE) and options activity around Israeli firms traded on US exchanges.
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Short-selling is aimed at making a profit on an asset that is expected to drop in price. The seller “borrows” a security and sells it on the open market with the goal of buying it back later at a lower price and pocketing the difference.
Researchers found significant short-selling of shares leading up to the attacks that triggered the Israel-Hamas war.
“Days before the attack, traders appeared to anticipate the events to come,” they wrote, citing short interest in the Israel Exchange Traded Fund (ETF) that “suddenly, and significantly, spiked” on October 2 based on data from the Financial Industry Regulatory Authority (FINRA).
The ETF is commonly used as a way for people to make investments in Israel, which on any given day has around 2,000 shares shorted. On October 2, that number shot up to over 227,000 shares, the study revealed.
“And just before the attack, short-selling of Israeli securities on the Tel Aviv Stock Exchange (TASE) increased dramatically,”
the professors wrote in their 66-page report.
“That’s extremely unusual,” said Mitts, one of the authors of the study, adding that shares sold short for one Israeli company alone yielded a profit of nearly $900,000.
In another documented example, 4.43 million shares in Leumi, Israel’s largest bank, were sold short between September 14 and October 5, yielding profits of 3.2 billion shekels ($862 million). Leumi’s share price dropped by almost 9% on October 8 in the immediate aftermath of the attack.
“Taken together, our evidence is consistent with informed traders anticipating and profiting from the Hamas attack,” the researchers concluded.
The professors found that the short-selling activity in early October “exceeded the short-selling that occurred during numerous other periods of crisis.”
The Israel Securities Authority said it was looking into the findings of US researchers, adding that “the matter is known to the authority and is under investigation by all the relevant parties.”
Originally published by Russia Today
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