a computer - implemented system and method for managing collateral allocations associated with tri - party repurchasing agreements and a collateral allocation system includes one or more processors and memory / database configured to store user - definable rulesets and collateral characteristics relating to the tri - party repurchasing agreements . a collateral allocation module recalls collateral from the tri - party repurchasing agreements to a common dealer box , and reallocates the collateral to the tri - party repurchasing agreements utilizing a self organizing map , so as to minimize margins to reduce over - collateralization and / or undercollateralization . other considerations , such as basket identifiers and cost of carry considerations may be weighed in the reallocation as well .