The New York Stock Exchange today reported net income of US$22 million for the quarter ended September 30, compared to US$2.1 million in the quarter last year and US$13 million for the second quarter of 2005.

Revenues for third quarter were US$277.5 million, up US$6.8 million or 2.5% versus the third-quarter of 2004. Regulatory fees increased US$4.6 million or 15.9% to US$33.8 million. Investment and other income was US$24.5 million, an increase of US$11.6 million or 90.4% versus the year-ago quarter.

The increase in investment and other income was the result of a portfolio restructuring in December 2004 to higher-yielding investments combined with a higher-interest-rate environment, additional fine income and non-recurring insurance claims received during the third-quarter 2005.

Listing fee revenue was US$85.4 million, an increase of US$2.6 million or 3.2% due to additional shares outstanding. The exchange saw a decline in data-processing fees of US$9.6 million or 17.8%, and trading fees decreased by US$3.1 million or 8.7%, even as NYSE average daily volume increased 14.7%. The decrease in trading fees is due to a one-time reimbursement of US$2.4 million during the third quarter of 2005 and certain pricing caps being met by members.

Expenses were US$240.6 million, down US$27.9 million or 10.4% from third-quarter 2004. The decreases were due to reductions in professional services of US$6.9 million or 18.2%, systems and related support of US$4.1 million or 12.5%, and compensation costs of US$11.4 million or 8.6%. These decreases were driven by cost-savings initiatives within NYSE including reduced spending in general and administrative expenses, down US$11.1 million or 42.9%.