tentative net capital
tentative net capital means the net capital of the security-based swap dealer before deductions for market and credit risk computed pursuant toparagraph (d)of this section or paragraphs (c)(1)(vi) and (vii) of this section, if applicable, and increased by the balance sheet value (including counterparty net exposure) resulting from transactions in derivative instruments which would otherwise be deducted pursuant toparagraph (c)(1)(iii)of this section. Tentative net capital shall include securities for which there is no ready market, as defined inparagraph (c)(4)of this section, if the use of mathematical models has been approved for purposes of calculating deductions from net capital for those securities pursuant toparagraph (d)of this section.