- FCA CEO Nikhil Rathi confirmed London now sits just one point behind New York in the 2026 Global Financial Centres Index, marking a measurable competitive recovery.
- The FCA has delivered sweeping regulatory reforms across equities listings and market structure, with wholesale finance — including FX, OTC derivatives, and international debt — identified as a continued area of strength.
- Rathi’s address at the Goldman Sachs EMEA Head of Trading conference signals the FCA’s intent to position the UK as a commercially agile, reform-forward jurisdiction for institutional market participants.
Rathi’s Case for UK Wholesale Competitiveness
Speaking at the Goldman Sachs EMEA Head of Trading Conference 2026, Financial Conduct Authority (FCA) Chief Executive Nikhil Rathi made a pointed case for the United Kingdom’s standing as a premier wholesale finance destination. Rather than conceding ground in the ongoing post-Brexit competitiveness debate, Rathi urged market participants not to underestimate the progress London has made — both in regulatory reform and in measurable global standing.
The remarks carry significant weight for institutions operating under FCA jurisdiction, particularly those active in institutional trading, structured products, and cross-border capital markets. Rathi’s framing suggests the regulator views its reform agenda not merely as a compliance exercise, but as a strategic instrument for market development.
London Closes the Gap on New York
A key data point anchoring Rathi’s argument is London’s performance in the Global Financial Centres Index (GFCI), where the city now trails New York by just one ranking point — a narrowing that reflects both regulatory credibility and market depth. For a financial centre that faced sustained uncertainty following the UK’s departure from the European Union’s single market framework, the recovery is commercially and symbolically significant.
The FCA has overseen far-reaching reforms to equities market structure and listings rules, but Rathi drew specific attention to segments where the UK retains dominant or structurally embedded positions: foreign exchange trading, international debt issuance, over-the-counter (OTC) derivatives, and parts of the commodities markets. These are areas where London’s liquidity pools, legal infrastructure, and institutional expertise continue to draw global counterparties regardless of broader geopolitical headwinds.
“London just one point behind New York in the latest Global Financial Centres Index.”
Regulatory Reform as a Competitive Tool
The FCA’s posture under Rathi has increasingly blended its traditional consumer protection and market integrity mandates with an explicit growth and competitiveness objective — a duty introduced under the Financial Services and Markets Act 2023. The Goldman Sachs conference address reflects this dual remit in practice: the regulator is signalling to institutional counterparties that the UK rulebook is being actively shaped to facilitate, not frustrate, sophisticated wholesale market activity.
For firms evaluating their EMEA booking and execution strategies, this is a consequential signal. Ongoing reforms to the UK MiFID framework, consolidated tape, and short-selling rules are all part of a broader recalibration designed to retain and attract wholesale business that might otherwise gravitate toward Amsterdam, Paris, or Dublin post-Brexit.
Implications for Market Participants
Institutions with operations across FX, rates, credit, and commodities desks should treat Rathi’s remarks as an indicator of near-term regulatory direction. The FCA appears committed to maintaining a principles-based, commercially literate supervisory approach for wholesale participants — while preserving robust oversight of systemic risk. Compliance teams should monitor forthcoming FCA consultation papers on wholesale market conduct and trading venue regulation for specific rule changes that operationalise this strategic direction.
Rathi’s decision to deliver this message at a Goldman Sachs institutional trading forum — rather than through a formal policy consultation — is deliberate signalling to the buy and sell side that the FCA is listening at market speed. For GCC-based institutions with London booking desks or EMEA treasury operations, this reform momentum strengthens the case for maintaining or expanding UK market access rather than accelerating migration to EU venues. The one-point GFCI gap is thin enough to close — and the FCA clearly intends to close it.
