Singapore Exchange Q3 profit rises 16 pct, powered by derivatives

SINGAPORE, April 22 (Reuters) - Singapore Exchange Ltd met market estimates with a 16.4 percent increase in quarterly net profit as a 52 percent surge in derivatives revenue pushed the bourse operator's profit to the highest in six quarters. The exchange, which is in the midst of selecting a successor to current CEO Magnus Bocker over the next few weeks, posted a net profit of S$88.2 million ($65.66 million) for January-March, in line with the S$87.6 million average of seven analysts polled by Reuters. "As with last quarter, we continue to expect demand for Asian trading and clearing services, as well as competition to grow," Bocker said in a statement on Wednesday, adding that the bourse's accelerated investments in derivatives and fixed income businesses were key pillars to its growth strategy. SGX is struggling with anemic trading volumes and a lacklustre IPO market, unlike Hong Kong Exchanges and Clearing Ltd, which has seen record turnover, helped by a landmark trading link with China. Although credited with developing a strong derivatives business, Bocker's six-year tenure has also been marred by a drop-off in stock trading volume - hit by scandals that have called the bourse's regulatory prowess into question as well. ($1 = 1.3433 Singapore dollars) (Reporting by Anshuman Daga; Editing by Muralikumar Anantharaman)