LONDON - Global regulators and financial institutions have to be prepared for an "era of predictable volatility" in markets, but have proven adaptable at coping with recent crises, the boss of Britain's Financial Conduct Authority (FCA) said on Tuesday.

Nikhil Rathi, speaking at an event in London, said that developments over recent years including war in the Middle East, Britain's gilts crisis, and the failures of large banks including Credit Suisse were evidence of a "sharp rise in volatility".

"As regulators and market participants, we must now expect to face this predictable volatility – as a constant," Rathi told London's International Capital Markets Conference.

Volatility has been exacerbated by greater digital inter-connectedness and market concentration, with the world's biggest companies - including in technology and investments - holding more sway, he added.

"Today a small blip can ripple across equities, fixed income, FX (foreign exchange), commodities, or more recently, crypto. All more and more connected. And things that used to be one-in-10-year events now happen every month," Rathi said.

Rathi said the FCA was working through a series of reforms to help the system cope, as well as to boost Britain's competitive position.

The watchdog is looking at measures to boost liquidity, be more proactive, and develop a "new mindset towards risk", he added.

The FCA, which now has a secondary objective to support the international competitiveness of Britain's financial sector, has to balance market calls for greater risk-taking against protecting financial stability and limiting consumer harm.

British politicians and regulators have put a renewed focus on revitalising the country's capital markets amid concerns London may be losing ground to rival financial centres like New York.

Prime Minister Keir Starmer has made accelerating UK economic growth a priority, and his newly elected Labour government will host a meeting later this month with international investors whose cash he needs to help fund the plans.

(Reporting by Kirstin Ridley, Iain Withers and Chandini M; Editing by Ros Russell and Mark Potter)