(38)The degree of risk posed by a systemically-important CCP to the financial system and stability of the Union varies. The requirements for systemically-important CCPs should therefore be applied in a manner proportionate to the risks that the CCP might present to the Union. Where ESMA, after consulting the European Systemic Risk Board (ESRB), and in agreement with the central banks of issue of all Union currencies of the financial instruments cleared or to be cleared by a third-country CCP, concludes, on the basis of a fully reasoned assessment, including a quantitative technical assessment of the costs and benefits, that a third-country CCP or some of its clearing services are of such systemic importance that compliance with the specific requirements set out in Regulation (EU) No 648/2012 would not sufficiently address the financial stability risk for the Union or for one or more of its Member States, and in the event that other measures are deemed insufficient to address financial stability risks, ESMA should recommend to the Commission that that CCP or some of its clearing services not be recognised. ESMA can, under that procedure, recommend to the Commission not to recognise a CCP, with or without prior classification of the CCP or some of its services as Tier 2.