Electronic collateral management system and method

A computer-implemented process for allocating specific assets from a pool of assets to secure a liability in an electronic collateral management system, comprising:

• storing, in at least one database, information related to a pool of assets that change on a frequent basis;
• performing, by a processor, the operations of;
• assigning a first set of assets to collateralize a liability, the first set of assets being selected from the pool of assets;
• receiving and updating, by a master custodian, information concerning each of the assets in the pool of assets, information for at least some of the assets in the pool of assets having been received, at least initially, from at least two sources per asset;
• determining assets to be rejected by applying a set of validation rules to information for each asset in the pool of assets;
• rejecting those assets which do not meet the validation rules;
• determining a price for each non-rejected asset;
• identifying a second set of assets by determining a subset of the non-rejected assets based on the assigned prices, such that the second set of assets are sufficient to collateralize the liability in accordance with rules established by parties to the liability;
• and
• assigning the second set of assets to collateralize the liability.