Israel Investigates Insider Trading Amid Gaza Rocket Attack

Rockets from Gaza are intercepted over Tel Aviv. Researchers believe investors knew about the attack by Hamas on 7 October. Photo: ATHIT PERAWONGMETHA / Reuters / NTB

Israel is investigating claims by US researchers that some investors may have known about the October 7 terrorist attack and used it to make money on stocks.

The researchers have found significant short-selling ahead of the attacks. This means that you sell shares that you do not have, which you can profit from if the price falls.

– In the days before the attack, it seems that those who acted anticipated what was going to happen, writes law professor Robert Jackson jr. and Joshua Mitts. They say interest in short selling in an Israeli index fund suddenly increased significantly on October 2.

– Just before the attack, there was also a dramatic increase in short-selling of Israeli securities on the stock exchange in Tel Aviv, they write in a 66-page report.

Børsen says in a comment that the matter is known to the authorities and is being investigated by all relevant bodies. A spokesperson for the stock exchange did not want to elaborate on this, and the police have not yet responded to an inquiry for a comment.

The researchers say the short-selling exceeds what has been seen several other times in times of crisis. (NTB)

2023-12-05 08:16:40
#Researchers #investors #knew #attack

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