Concerns have been raised concerning a analysis paper that recommended Hamas or an affiliated group may need profited from brief promoting forward of the Oct. 7 bloodbath in Israel.
In an article printed in Globes, Yaniv Pagot, Tel Aviv Stock Exchange EVP head of commerce, referred to as into query many assumptions made within the analysis paper “Trading on Terror?” printed within the Social Science Research Network journal by regulation professors Robert J. Jackson, Jr. of NYU and Joshua Mitts of Columbia. Pagot argued that evaluation exhibited a “lack of understanding” about operations of the TASE, together with the denominations used to cite inventory costs.
In the paper, Jackson and Mitts introduced proof that “traders informed about the coming attacks profited from these tragic events,” citing “a significant spike in short selling” in a number of devices, together with the iShares MSCI Israel ETF (NYSEARCA:EIS) in addition to particular person shares, like Bank Leumi.
“What the researchers did in the study was to assume through lack of familiarity with the local market that share prices in Israel are quoted in shekels rather than agorot,” Globes quotes Pagot as saying, noting that 100 agorot equals a shekel. The government added that this error “magnified the loss per share 100 times.”
Pagot went on to notice that transparency rules associated to brief promoting, in addition to different rules, comparable to these coping with cash laundering, would make it tough for an actor like Hamas to brief shares in the way in which outlined within the paper.
“Would somebody from Hamas or a straw company acting on their behalf sign a share lending agreement on the TASE?” Globes quotes Pagot as saying. ” In other words, there could not be such a scenario.”
