EU regulators could allow almost twice as much trading to take place in off-market venues known as "dark pools" without any ill-effects to public markets, according to the latest academic thinking.

In a paper published yesterday by the UK's market regulator, the Financial Conduct Authority, a group of academics have warned against "eliminating the benefits" of trading in dark pools, a practice European regulators are clamping down on with their new securities rulebook, Mifid II.