Israel Explores Potential Insider Trading before Oct 7 Hamas Attack

Israeli securities under investigation for potential insider trading
Israeli authorities are probing allegations of insider trading related to a Hamas attack on Israel in October 2023 after U.S. researchers uncovered suspicious trading activity leading up to the assault. Law professors Robert Jackson Jr from New York University and Joshua Mitts of Columbia University reported a surge in short-selling of MSCI Israel Exchange Traded Fund (ETF) shares just days before the offensive. Short volume also spiked for Israeli securities on the Tel Aviv Stock Exchange (TASE) in the lead-up to the attack. The Israel Securities Authority confirmed that the matter is under investigation, while Israeli police declined to comment. The researchers observed a significantly higher level of short-selling compared to other crisis periods, including the 2014 Israel-Gaza war and the COVID-19 pandemic, suggesting that traders may have profited from the tragic events. The study also revealed a similar spike in short volume months before the attack, raising concerns about potential insider knowledge. The findings, first reported on The Marker, have sparked concerns about potential insider trading and its impact on Israeli securities.

(Source: Reuters)

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