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Suspicious short-selling occurred days before Hamas attack that sparked Israel-Gaza war: research report

New information shows that unnamed stock traders placed bets on Israeli companies in the days before the October 7 attack by Hamas. financial investigation.

New York University law professor and former Securities and Exchange Commissioner Robert Jackson Jr. and Columbia University law professor Joshua Mitts were arrested not only in advance of the Oct. 7 attack, but also earlier than scheduled. It was discovered that suspicious transactions had taken place earlier than that. As reported by Israeli media, the attack dates back to April.

After analyzing short-selling volume data for Israeli stocks and a group of stocks known as exchange-traded funds (ETFs), Jackson and Mitz found that “our evidence predicts and profits from Hamas attacks.” “This is consistent with informed traders.”

Short sellers pay a fee to borrow shares in a company that they expect will fall in value. The trader quickly sells the borrowed stock, then immediately buys it back at a lower price and returns it to the broker, pocketing the difference as profit.

“Right before the attack, we observed a sudden and unusual increase in trading in these companies’ risky short-term options that expired shortly after the attack,” the researchers wrote. “We documented a significant spike in short interest in major Israeli corporate ETFs in the days leading up to the October 7th Hamas attack.”

According to Israel, short selling volume in a major Israeli ETF called EIS also spiked in the days before the Passover eve, when the Hamas attack was originally planned. media.

“As previously mentioned, EIS short volume peaked on April 3rd, very similar to the levels observed on October 2nd, and much higher than any other day before April 3rd. the researchers said.

The investigation did not identify the traders and was based on trading volume data from financial firms. black rock.

guardian report It said the matter was being investigated by the Israeli Securities Authority (ISA), which is equivalent to the SEC.

Asked by The Hill for a statement on the study’s findings, Garrit Cohen, the ISA’s director of public research, acknowledged receiving the request but provided no additional information.

new york times report Last week, it was revealed that Israeli authorities had known about Hamas’s attack plan for more than a year before it took place, but had ignored it as too difficult to carry out.

The newspaper reviewed translated documents describing the attack and said the plan was carried out by Hamas with “remarkable precision.”

More than 16,200 people have been killed in Gaza since the October 7 attack, according to the Palestinian News Agency. Wafa.of united nations The Humanitarian Affairs Department said Tuesday that the number was 16,248, with multiple deaths in more than 1,550 households. Approximately 1.93 million people, or 78% of the total population, are internally displaced in Gaza.

Sources said the first attack by Hamas killed about 1,200 Israelis and foreigners. Approximately 160 Israeli and foreign hostages remain held by Hamas. NPR It was reported at the end of November.

Copyright 2023 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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