Singapore Exchange Q3 profit at 10-yr high on strong derivatives revenue

SINGAPORE (Reuters) - Singapore Exchange Ltd (SGX) reported a 21 percent rise in Jan-March net profit, boosted by a strong performance in its derivatives and securities segment, which boosted profit to the highest in 10 years.

Market focus is now on how SGX can cope with a move by India's three main bourses to stop licensing their indexes and securities to foreign exchanges in August. Worried by the potential decline in business, analysts have cut SGX's earnings estimates for the next few years.

SGX has said it will list launch successor products to its flagship Indian equity derivative products in June, ahead of the expiry of its licence agreement with the National Stock Exchange of India in August.

SGX's total third-quarter net profit came in at S$100.5 million ($76.5 million) versus S$83.1 million a year ago, while revenue rose 10 percent to S$222.2 million.

SGX, a global listing hub for real estate investment trusts and business trusts is also launching dual-class shares this year, a plan that fits with Singapore's moves to reinvent itself as a fintech and new technology hub.

This comes as exchanges are stepping up efforts to attract listings, with Hong Kong Exchanges and Clearing set to announce dual-class shares and biotech listing rules next week.

($1 = 1.3145 Singapore dollars)

(Reporting by Anshuman Daga; Editing by Gopakumar Warrier)