The Singapore Exchange (SGX) posted its best quarterly result in seven years, thanks to volatility in global markets.
The increased trading activity in the quarter boosted earnings in the securities business while the derivatives unit continued to record higher transaction volumes.
All the other businesses apart from issuer services also contributed to the overall growth.
AT A GLANCE
REVENUE: $220 million (+30%)
NET PROFIT: $99 million (+28%)
DIVIDEND: Five cents per share (+25%)
Net profit for the three months to Sept 30 grew 28 per cent to $99 million compared with the same quarter last year.
This was the SGX's sixth highest quarterly net profit since it listed in 2000. Revenue jumped 30 per cent to $220 million.
"It was a good quarter, best since the first quarter of 2008," said chief executive Loh Boon Chye at the results briefing after the close of the market yesterday.
However, he also warned that sustained volatility with persistently weak market sentiments may pose challenges in the coming quarters.
Securities revenue grew 14 per cent to $55.9 million compared with the same quarter last year.
The total traded value of securities was $74.8 billion, up 19 per cent, while the daily average traded value (SDAV) grew 27 per cent to $1.2 billion.
The SDAV of Straits Times Index (STI) stocks increased 61 per cent to $0.88 billion.
However, there were only seven new listings in the quarter - all on the Catalist board - raising $0.1 billion, compared with 13 listings raising $1.9 billion a year earlier.
Derivatives revenue recorded a 69 per cent increase to $90.9 million, driven by growth in equities and commodities trading.
It accounted for 41 per cent of total revenue, up from 32 per cent a year earlier.
Revenue from derivatives in equities and commodities grew 67 per cent to $67.1 million on the back of an 82 per cent increase in volume growth, driven primarily by the strong performance of the SGX FTSE China A50 Index futures.
The local bourse will reward its shareholders with a quarterly dividend of five cents per share, up from four cents per share, payable on Nov 5.
Earnings per share for the quarter rose 28 per cent from a year earlier to 9.3 cents while net asset value stood at 79.4 cents per share as at Sept 30, down 12.9 per cent from 91.2 cents per share as at June 30.
Mr Loh said that improving liquidity is one of his three priorities.
"Only with a sufficiently deep and liquid market, will we be able to attract more IPOs" when global economic and financial market conditions recover, he added.
He is encouraged by the progress of the market maker and liquidity provider programmes introduced over the past 18 months and plans to build on this momentum.
Market maker and liquidity provider participants accounted for about 18 per cent of the traded value compared with 12 per cent in the same period a year earlier.
Since the reduction of the board lot size in January, retail participation in both the overall market and STI stocks have increased.
Mr Loh's other key priorities are in diversifying SGX's business mix and maintaining cost discipline.
SGX shares closed two cents lower at $7.51 ahead of its results briefing.