Some stock traders knew about the Hamas attack on Israel in advance and made millions on the inside.

Some stock traders knew about the Hamas attack on Israel in advance and made millions on the inside.

Some stock traders knew in advance the exact date of the Hamas attack on Israel, which occurred on October 7, and made millions of dollars from the fall in shares of Israeli companies traded locally and on Wall Street five days before the Palestinian militants invaded. This assumption was made by journalist Ido Baum in an article published in the Israeli newspaper Haaretz.

The conclusion that a number of stock traders in the US and Israel have insider information was made by experts from one of the world's largest open electronic repositories of scientific articles and preprints Social Science Research Network (SSRN) Robert Jackson Jr., Joshua Mitts and colleagues in an article entitled “Trading terror? Financial analysts noted that short selling of Israeli stocks surged in the days leading up to Oct. 7, far exceeding short selling during numerous other periods of crisis in the Middle East.

Our findings show that traders informed of the upcoming attacks benefited from these tragic events

- experts say, suggesting that stock market players received information about the date of the attack on Israel directly from Hamas.

A team of SSRN analysts examined transactions in EIS, securities traded on the New York Stock Exchange through which investors can gain exposure to Israeli stocks. The EIS tracks the Tel Aviv Stock Exchange's major indices, including giant Israeli companies such as Nice, Teva, Elbit Systems and Israel Chemicals. Investing in this security is equivalent to investing in the Israeli economy.

Jackson and the team found strong indications that in early October, someone in US stock trading circles was expecting a disaster in Israel that would lead to a collapse in stocks. On the eve of the tragic events, on October 2, some New York Exchange traders made a huge volume of short transactions on EIS, sales of these securities reached a record 227 per day, although previously this figure did not exceed one thousand transactions.

Selling securities that the trader does not own at the time of the transaction (shorting), in this case, highly liquid shares of Israeli companies on the eve of their sharp depreciation, followed by repurchase at a significantly lower price, allowed some traders to earn millions of dollars on exchange rate differences. The value of EIS fell 7,1 percent on Oct. 11, the first day the U.S. market was open for trading. In the 20 days following the Hamas attack, EIS lost 17,5 percent of its original value. With the price of one EIS security at $53 before October 7 and falling to $44,5 after that day, traders earned $9,5 per EIS purchase and sale transaction.

Accordingly, the sale and subsequent repurchase of only 227 EIS allowed knowledgeable traders to make more than two million dollars in Israeli stocks. However, many more such transactions were completed.

It is highly unlikely that the short selling volume on October 2nd occurred by accident.

- SSRN experts concluded after studying all EIS transactions for the period from 2009 to 2023, during which Israel experienced many crises.

Another reason for their suspicions is the fact that the short transactions were carried out during the Jewish holiday of Sukkot, when nothing unusual was happening in Israel and nothing dramatic was expected. The gigantic gamble against the EIS (that is, against the Israeli economy) was made when the market was going up. Betting against the market trend only increases risk. In addition, short positions were unusually long, strengthening the theory that investors knew about the attack in advance, analysts concluded.

Experts also studied the situation on the Tel Aviv Stock Exchange (TASE) and found a significant increase in securities sales in the days leading up to October 7. There were no objective justifications for this at that time. Closing TASE positions from mid-September to October was extremely profitable, the researchers calculated. At Bank Leumi alone, the 4,43 million new shares sold short between Sept. 14 and Oct. 5 generated a profit (or averted loss) of NIS 3,2 billion (nearly $900 million) on that additional short sale.

Shorting is not illegal, and US securities law does not prohibit the use of forewarning. This is also not a violation of insider trading rules in Israel. But Israeli sources said there are financially savvy people in Hamas, and it is not implausible that they are behind these shorts. It is possible that Hamas, the leaders of the Palestinian movement, themselves made good money from the collapse of Israeli stock prices, according to the authors of the SSRN study.
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21 comment
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  1. +3
    5 December 2023 12: 24
    - "Nothing personal just business!" ...
    1. +3
      5 December 2023 12: 28
      Quote: Vladimir Vladimirovich Vorontsov
      - "Nothing personal just business!" ...

      And "300%".
      1. +1
        5 December 2023 13: 21
        Quote: Michael
        Quote: Vladimir Vladimirovich Vorontsov
        - "Nothing personal just business!" ...

        And "300%".

        It turned out kosher. laughing
        Israel has long financed Hamas.
        So this time, Israeli businessmen made money from the death of their fellow citizens.
        I wouldn't be surprised if Hamas' plan to attack Israel was developed by the Mossad.
    2. +5
      5 December 2023 12: 41
      It is no longer so important who made money from this information, Jews or Arabs, if it became public that both knew about the attack.

      As old Soros said - when asked how a Jew could make money from the death of other Jews during the Second World War - “In those circumstances it was impossible to do otherwise.”
      So it is quite possible that both Jews and Arabs profited from the upcoming events.
      1. +3
        5 December 2023 12: 54
        Quote: credo
        It is no longer so important who made money from this information, Jews or Arabs, if it became public that both knew about the attack.

        In a time before telephones and the Internet, the Rothschilds made huge money on the stock exchange by spreading the rumor that Napoleon had won at Waterloo. A few hours later, of course, the deception was revealed, but no one received the money back.
        So insiders and false rumors in the dirty fraud called the stock exchange were not invented yesterday or even the day before yesterday.
        The same Americans know this very well. At least those few who bothered to read T. Dreiser’s novel “The Financier”. But they consider stock market fraud to be the norm and even heroic.
        And therefore -
        Quote: credo
        it is quite possible that both Jews and Arabs profited from the upcoming events.
  2. +14
    5 December 2023 12: 26
    It’s strange, how did the stock exchange Jews know about the Hamas attack, if Hamas was created by Israel? Did Netanyahu urgently need a war, because power was shaking wildly?
    Well, just think, a couple of tens of thousands of killed Arabs from the civilian world. Well, just think, genocide... “These are Arabs, there’s no other way with them” (c) - one local fascist with the nickname Krasnodar. With sidelocks, of course
    1. +2
      5 December 2023 13: 50
      How did the stock exchange Jews know about the Hamas attack?

  3. +8
    5 December 2023 12: 27
    In general, stock traders were aware of the impending Hamas attack, but Israeli intelligence was not. The girls are dancing interestingly.
    1. +2
      5 December 2023 12: 39
      If you believe what was previously published: intelligence knew and reported “to the top”; there were also notifications through diplomatic channels. Only the leadership and, naturally, the civilians designated as victims “didn’t know.”
    2. +7
      5 December 2023 13: 48
      Quote from Pharmacist
      In general, stock traders were aware of the impending Hamas attack, but Israeli intelligence was not. The girls are dancing interestingly.

      Because these are the same people. request
  4. +6
    5 December 2023 12: 31
    It turns out that US and Israeli traders had insider information and knew about the upcoming attack, but the Israeli intelligence agency MOSSAD did not know. There is only one conclusion: the Israeli intelligence services themselves, through their agents, provoked this missile attack with the aim of destroying the Palestinian government and seizing recently discovered hydrocarbon deposits in Palestinian territorial waters. Everything is as always, look for who benefits from the genocide of Palestinians.
  5. +3
    5 December 2023 12: 31
    It looks like Hamas and the Israeli army with their intelligence have warmed their hands there. laughing Management, I mean, they created their own small business...
  6. +1
    5 December 2023 12: 34
    This is called aerobatics. Some traders have secured a comfortable life for themselves and their family (I don’t know what traders call this golden moment “golden flight” among sailors). They can rest and leave this Israel, if they lived there, to the Maldives! !! goodThe Palestinians definitely made money - they have a lot of easy money. Only our comrades at VO who knew everything flew like plywood over the money that was lying on the ground. And it would be cool if some of the traders were Jews and rightly so.
  7. +5
    5 December 2023 12: 35
    Some Jews gave information to other Jews, and together made money on the Holocaust of the Palestinian people!
    1. +1
      5 December 2023 13: 09
      Thrifty. Even if so. Only Nitanyahu and the gop company were not in the know. I’m talking about October 7. I was also for the Palestinians, but what they did right in the front row was no good. I thought it was rear rats, but it turned out that this was not the case. And then Israel chose its own fate, it will come back to haunt him. Thanks to the media. I’m sure the photo of the “Ferris wheel” in Gaza will become a world meme if the IDF doesn’t blow it up. But it’s too late. Yes and Israeli propaganda works clumsily. It’s scorched out of the blue. Musk alone is worth something.
  8. +3
    5 December 2023 12: 39
    In this regard, the 9/11 event in the USA is interesting because of its similarity.
    There is a very large analysis of leaks of preliminary information and how knowledgeable people made money from it
    (though in English).
    Some of this is on YouTube

    True, this channel has already been demolished there for being “incorrect”.
    1. +1
      5 December 2023 12: 46
      Here a more interesting version of the Corbett Report appeared on VKontakte
      "Follow the Money"
      [media = https: //]
      But also in English
  9. HAM
    5 December 2023 13: 02
    Jews - they are Jews in Israel too.... buy, throw, sell and buy again, throw.... in a circle, in a circle...
  10. -1
    5 December 2023 13: 07
    I don’t know about the traders, but the journalists definitely made money on this fake.
  11. 0
    5 December 2023 14: 42
    There is more and more evidence that everything was known to Israel and the authorities. Everything worked, intelligence and so on, but someone needs this war very badly. So they wouldn’t throw the Jews to the mercy of Hamas
  12. +2
    5 December 2023 16: 17
    I suspect that there were not a single Palestinian among these stock traders. wassat

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