Page 47 - PRIAA Glossary

DE MINIMIS THRESHOLD
The notional threshold of swap positions related to swap dealing activity above which requires an entity to register as a swap dealer with the Commodity Futures Trading Commission (CFTC). Generally defined as a gross notional amount greater than $3 billion over the past year.
DEADWEIGHT TONNAGE (DWT)
Deadweight tonnage is the measurement of a vessel’s carrying capacity. The cargo capacity of a vessel is equivalent to the deadweight tonnage minus the weight of any consumables on board, such as fuel, lube oil, drinking water, stores and crew.
DEALER POLL
The process of finding a reference price for an asset by obtaining quotes from multiple dealers. Additionally, polls can be conducted to establish the price of a defaulted bond or loan following a credit event.
DEBT VALUATION (OR VALUE) ADJUSTMENT (DVA)
The difference between a portfolio valued without default risk and a portfolio valued with default risk. The equation for this can be seen below:
Debt Valuation Adjustment (DVA)
= (Expected Negative Exposure)
*(Own Default Probability)*(Own Loss Given Default)
DEBT-TO-CAPITAL RATIO
One of a number of “quick” financial ratios used to determine a company’s financial leverage. Calculated as the total debt (all long and short-term obligations) divided by total capital. Total capital includes all shareholder equity (common & preferred stock and any minority interests) plus all debt.
DEEMED COMPLIANT FOREIGN FINANCIAL INSTITUTIONS (FFIS)
Entities which are excluded from the definition of FFIs. To obtain a deemed compliant status, FFIs have to apply for an FFI identification number (FFI-EIN) from the Internal Revenue Service (IRS) and get it certified every three years.
45
D