Israel investigates possible trading knowledge ahead of Oct 7 Hamas attack

JERUSALEM, Dec 4 (Reuters) - Israeli authorities are investigating claims by U.S. researchers that some investors may have known in advance of a Hamas plan to attack Israel on Oct. 7 and used that information to profit from Israeli securities.

Research by law professors Robert Jackson Jr from New York University and Joshua Mitts of Columbia University found significant short-selling of shares leading up to the attacks, which triggered a war nearly two months old.

"Days before the attack, traders appeared to anticipate the events to come," they wrote, citing short interest in the MSCI Israel Exchange Traded Fund (ETF) that "suddenly, and significantly, spiked" on Oct. 2 based on data from the Financial Industry Regulatory Authority (FINRA).