Red Hat (NYSE: RHT) is a key technology player in the proposed merger of the New York Stock Exchange and the German exchange Deutsche Borse, according to CompuerWorld UK.

In a report focused on the technology and cost savings that would make a combined exchange work, CompuerWorld UK points out that Red Hat Enterprise Linux could support it. The world’s top Linux software developer and services provider could also helped the two entities say more than $200 million.

A single Linux-based trading platform would enable 26 percent of the overall cost savings that a merger would create, the website added, citing reports filed by the exchanges.

“The companies declined to confirm exact supplier plans, but both run their matching engines on Red Hat Enterprise Linux and the system is understood to be seen as the most likely backbone for the proposed single trading system,” ComputerWorld UK said. “Several market sources confirmed the exchanges would be inclined for Red Hat systems to take a central position in the exchanges’ merged infrastructure.”

The Red Hat platform would support trading, derivatives and options.

The NYSE just recently turned down a bid from Nasdaq for a merger.

The story noted that Red Hat’s platform supports up to 100,000 messages per second with a latency of 150 microseconds on the NYSE.

Beutsche Borse is moving to Red Hat from Unix.
“To enable high frequency trading for sophisticated investors, execution times of trades have to be competitive with other trading platforms,” the exchanges said in their merger document. “The availability of IT systems and prevention of IT processing errors are key quality issues demanded by customers.”

Read the full report here.

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