New York, NY – December 6, 2023
In an alarming revelation, a report released this week by a former SEC commissioner, currently a professor at NYU, and a Columbia law professor has uncovered a notable surge in short-selling activities related to Israeli securities in the days leading up to the October Seventh Hamas attacks. The findings suggest that some traders may have possessed advance knowledge of the impending terrorist incident and potentially exploited it for financial gain.
The report highlights a “significant” and “unusual” spike in short selling, particularly within the most popular fund linked to Israeli companies, the MSCI Israel Exchange Traded Fund. The surge, observed five days prior to the October Seventh attacks, reportedly “far exceeded” the normal short selling activity associated with this fund.
The authors of the report express concern over the timing and magnitude of the short-selling activity, raising questions about whether certain individuals or entities were privy to information regarding the impending terrorist attacks. Notably, the report does not provide information about the specific location of the parties involved in these trades, and the authors remain uncertain about potential connections to financial firms, government entities, or terrorist organizations.
Market analysts and regulatory authorities are closely scrutinizing the report’s findings, aiming to discern whether the surge in short selling can be attributed to mere market speculation or if it indicates more sinister motives involving insider information.
The revelation has prompted calls for a thorough investigation by financial regulatory bodies to ascertain the origin and nature of these trades. If proven, such actions would not only raise ethical concerns but could also lead to legal consequences for those involved in exploiting advance knowledge of the tragic events for personal financial gain.
