Nasdaq Stock Market Inc , the second-largest U.S. equities exchange, posted a higher quarterly profit on Wednesday, helped by a gain from the sale of its stake in the London Stock Exchange.

Net income for the third quarter rose to $365 million, or $2.41 per share, from $30.2 million, or 22 cents per share, a year earlier.

Excluding special items, Nasdaq earned $62 million, or 42 cents per share, beating analysts' average estimate of 39 cents, according to Reuters Estimates.

Net exchange revenue, excluding rebates and fees, rose about 23 percent to $210 million from $171.2 million.

Nasdaq expects 2007 net income between $501 million and $507 million.

The company expects full-year net exchange revenue of $800 million to $810 million.

These estimates and third-quarter results include a $431.4 million pre-tax gain from the sale of its LSE stake and other items, the company said in a statement.

The latest quarter's results also include a pre-tax gain of $35.2 million related to gains in Nasdaq's foreign currency option contracts.

Nasdaq's also spent $1.1 million in work-force reduction and took other charges during the quarter.

Nasdaq's matched market share -- which refers to trades executed within its own markets instead of being routed to other venues -- in stocks listed on its market fell to 47.3 percent from 48.7 percent in the year-ago quarter.

Nasdaq's matched market share in securities listed on NYSE Euronext's New York Stock Exchange rose to 18 percent during the third quarter from 12 percent the prior year.

Nasdaq sold most of its 30 percent stake in the LSE to Borse Dubai last month as part of a complicated three-way deal in which the two companies jointly agreed to acquire Nordic markets operator OMX AB. (Reporting by Anupreeta Das)

London stock exchange NYSE Euronext NASDAQ OMX Group