The European Systemic Risk Board recommended that the European Market Infrastructure Regulation – Europe’s partial equivalent of Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act – should be enhanced to require clearinghouses to use their own capital (so-called “skin in the game”) as part of the waterfall utilized to recover from the default of one or more clearing members. According to the ESRB, the amount of skin in the game should be aligned to “the level of the [clearinghouse’s] clearing activity in order to ensure that these incentives are in some way proportionate to the quantitative dimension of the risks it manages.” The ESRB is part of the European system of financial supervision that, following the 2008 financial crisis, was entrusted to ensure supervision of the European Union’s financial system. It is specifically responsible for helping to prevent or mitigate systemic risks to financial stability within the EU.