1.9. Undertakings should consider that a risk-mitigation technique does not result in material basis risk where the following conditions are met:

(a) the exposure covered by the risk-mitigation technique is sufficiently similar in nature to the risk exposure of the undertaking;

(b) the changes in value of the exposure covered by the risk-mitigation technique closely mirror the changes in value of the risk exposure of the undertaking under a comprehensive set of risk scenarios, including scenarios that are consistent with the confidence level set out in Article 101(3) of Solvency II.