Nasdaq Stock Market Inc today reported a huge jump in third-quarter net income due largely to a gain from the sale of its stake in London Stock Exchange Group PLC.

The second-largest U.S. stock exchange reported net income of US$365 million, or US$2.41 a share, compared with US$30.2 million, or 22¢ a share, a year earlier.

Results included pretax gains of US$431.4 million related to Nasdaq’s sale of its stock in London Stock Exchange Group. Nasdaq failed in two attempts to gain control of the London exchange, the latest in February, but had bought close to 30% of its shares. Excluding items, earnings were 42¢ a share.

Total revenue jumped 62% to US$652 million from US$402.9 million. Net exchange revenue, which excludes liquidity rebates, brokerage, clearance and exchange fees, increased 23% to US$201 million.

Matched share of New York Stock Exchange-listed stocks climbed to 35% from 27.5% a year ago, but rose to 52.4% from 47.7% in trading of American Stock Exchange-listed securities.

Nasdaq captured 56 new listings during the quarter, of which 24 were initial public offerings.

Looking ahead, Nasdaq said it expected 2007 net income of US$501 million to US$507 million, including the gain for the London Stock Exchange sale. It estimated net exchange revenue of US$800 million to US$810 million.

The exchange previously forecast 2007 earnings of US$171 million to US$181 million on net exchange revenue of US$775 million to US$790 million.

Last month, Nasdaq and Borse Dubai agreed to a three-way deal for OMX AB, bringing a near two-month battle for the Nordic exchange operator close to an end. Under the deal, Borse Dubai will buy OMX, then transfer ownership to Nasdaq in return for a 19.9% stake in the new company and Nasdaq’s stake in London Stock Exchange Group.