What is the EU equivalent of the Dodd-Frank act?

The European Market Infrastructure Regulation (EMIR) serves as the EU equivalent of the Dodd-Frank Act in terms of its focus on increasing transparency and reducing systemic risk in the derivatives markets. EMIR was introduced in response to the financial crisis of 2008, much like Dodd-Frank, which was enacted in the United States.

EMIR primarily aims to regulate over-the-counter (OTC) derivatives transactions and requires central clearing of certain derivatives to enhance market stability and reduce counterparty risk. This contributes to the overall goal of increasing oversight in financial markets, aligning it with the intentions behind the Dodd-Frank Act, which introduced significant reforms in financial regulation, particularly concerning derivatives trading and the requirement for greater transparency in the financial sector.

The other options, while relevant to the broader financial regulatory framework in the EU, do not provide a direct equivalent to the Dodd-Frank Act. For instance, the Market Abuse Regulation focuses on market integrity and preventing insider trading; MiFID II is primarily concerned with improving the functioning of securities markets and enhancing investor protection; and the Capital Requirements Directive deals with the adequacy of banks’ capital, aiming to promote stability in the banking sector. Each of these regulations addresses different facets of financial regulation rather than