VirnetX: Naked Shorting And Dark Pools It just doesn't seem logical that a 30% of float short position against VirnetX (NYSEMKT:VHC) has been maintained for months on end. How could the short sellers maintain their positions without being forced to cover? Wouldn't short covering be obvious given the short covering rules, an average daily volume of about 1.5 mil shares with 14 mil of 43 mil float shares listed as short? A Google (NASDAQ:GOOG) search on "dark pools and short selling" may provide one answer.
Dark Pools were purportedly designed to "manage" large trades outside the public arena by matching buyers and sellers and executing the trades 'within the pool' before the market became aware of the trades and perhaps tried to move against them. In the search, Goldman Sachs comes up repeatedly since they manage a Dark Pool and clearly are heavily involved in short selling. , Joan E. Solsman quoted from a report by Goldman Sachs (NYSE:GS) "recent rule changes (in short selling) have been effective, but that additional measures on 'naked' short selling - selling shares before they have been borrowed - are not necessary" and " While it reiterated its support for regulation of abusive, ...