The International Securities Exchange Inc. today reported higher net income for the second quarter ended June 30.

The New York-based options exchange said that net income increased 17.1% to US$8.1 million from US$6.9 million for the same period in 2004. Total revenues for the quarter increased 15.1% to US$35 million as compared to US$30.4 million in the prior year. The average daily volume of equity options contracts traded increased 17.5% to approximately 1.6 million contracts as compared to 1.4 million contracts in the year-ago quarter.

For the first six months of 2005, net income increased 18.4% to US$17.0 million, compared to US$14.4 million in the first half of 2004.

“We are pleased to report record revenues and another quarter of double digit-growth in our average daily volume and net income,” said David Krell, ISE’s president and CEO. “Our core businesses remain robust and our index business continues to make solid gains. The momentum that we are experiencing underscores our competitive advantage in the marketplace as investors increasingly acknowledge that ISE provides the tightest markets, the best liquidity and an unparalleled level of customer service.”

Krell said that the ISE continues to develop and expand its index business. “The success that we have experienced with the Nasdaq-100 index demonstrates the potential that exists in index options and we remain encouraged by the growth that we have seen thus far,” he said, adding that it plans to launch additional proprietary indexes and third-party indexes. “We are confident that our expertise and track record in equity options will translate into continued success in our index options business,” Krell noted.

The International Securities Exchange is the world’s largest equity options exchange.