Nasdaq tops forecasts with its earnings

NASDAQ’S core profit jumped 20 per cent in the third quarter, the firm said yesterday, as volatile markets boosted trading volumes across the exchange operator's spectrum of assets.

Nasdaq had a six per cent rise in stock trading revenue and a 40 per cent jump in revenue from derivatives trading and clearing, including the top market share in US equity options.

Excluding one-time items, the Nasdaq Stock Market parent earned $121m (£75.8m) in the quarter, up from $101m a year ago.

Revenue rose 18 per cent to $438m, slightly ahead of expectations.

“They are relying on organic growth, and pointing to derivatives and market technology and data to get there,” said Patrick O'Shaughnessy, analyst at Raymond James. “For the most part it’s been working – another quarter of record earnings.”

Including $14m in costs related in part to merger efforts, net profit was $110m.

Under chief executive Robert Greifeld, Nasdaq has been on the sidelines of a global merger push among exchanges after dropping its hostile bid for NYSE Euronext in May.