Brokerage firms on the New York Stock Exchange are enjoying much higher second quarter profits, but its specialists are not.

NYSE member firms that conduct business with the public reported second quarter after-tax profits of US$2.95 billion on revenues of US$78.64 billion, compared to US$1.13 billion in after-tax profits on revenues of US$53.32 billion in the second quarter of 2005.

For the second quarter of 2006, NYSE specialists reported after-tax profit of US$26 million. During the same period last year, the specialists reported an after-tax profit of US$33 million. Total specialist revenue in the second quarter of 2006 was US$215 million, compared to US$220 million in the second quarter of 2005.

For firms dealing with the public, the figures collected by NYSE Regulation include revenue from all sources, including trading, interest and commission income. Since the NYSE member firm community is made up of corporations and partnerships, after-tax earnings are presented on a pro-forma basis assuming a regular corporate tax rate or credit of 35%.

The category of member firms dealing with the public generally excludes specialists, but includes firms that primarily trade for their own account, rather than doing a public business.