The European Securities and Markets Authority published four reports assessing how the European Markets Infrastructure Regulation framework has been operating and providing recommendations to the European Commission for enhancement. Among other recommendations, ESMA suggested that the process for determining clearing obligations should be streamlined, and that a mechanism must be implemented to permit the suspension of clearing obligations if certain market conditions arise (e.g., a clearinghouse fails to operate, or one or more key clearing members default). Also, ESMA proposed that frontloading requirements be reconsidered for over-the-counter contracts entered into before a clearing obligation becomes mandatory. Moreover, ESMA proposed to reconsider its recognition process to determine whether non-EU clearinghouses are subject to equivalent oversight. This is because ESMA’s willingness to largely defer to other regulatory schemes for non-EU clearinghouses might place EU clearinghouses at a competitive disadvantage where such deferral is not reciprocal, claimed ESMA. Finally, ESMA identified various legal and operational issues related to the rollout of customer assets protection regimes contemplated under EMIR that have caused inconsistencies in application among clearinghouses. For example, some issues have arisen because of imprecise definitions or formal definitions that are contrary to industry parlance (e.g., the definition of client), or the practical difficulty of following some of EMIR’s requirements (e.g., the obligation of a clearing member to take over a client’s position after a default but the failure of some CCP rules to accommodate the movement of customer positions from customer accounts to house accounts). Although some of these issues have been addressed through ESMA-issued Q&As, others have not, said ESMA. Among other possible solutions, ESMA recommended that margin periods for computing initial margin levels might be varied for different types of accounts (e.g., individual segregated accounts, gross segregated omnibus accounts and net segregated omnibus accounts).