tentative net capital
tentative net capital means the net capital of an OTC derivatives dealer before deducting the charges for market and credit risk as computed pursuant to appendix F to this section ( 240.15c3-1f)orparagraph (c)(2)(vi)of this section, if applicable, and increased by the balance sheet value (including counterparty net exposure) resulting from transactions in eligible OTC derivative instruments which would otherwise be deducted by virtue ofparagraph (c)(2)(iv)of this section. For purposes ofparagraph (a)(7)of this section, the termtentative net capitalmeans the net capital of the broker or dealer before deductions for market and credit risk computed pursuant to 240.15c3-1eorparagraph (c)(2)(vi)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 by virtue ofparagraph (c)(2)(iv)of this section. Tentative net capital shall include securities for which there is no ready market, as defined inparagraph (c)(11)of this section, if the use of mathematical models has been approved for purposes of calculating deductions from net capital for those securities pursuant to 240.15c3-1e.