Singapore Exchange, the operator of the city-state’s securities and derivatives markets, said second-quarter net income fell 3.9% even as trading volumes rebounded.

Net income totaled $71.8 million, or 6.7 cents a share, in the three months ended in December, down from $74.7 million, or 6.97 cents, a year earlier, the company said in a statement. Operating revenue climbed 2.7% from a year before to $150.7 million. Shares worth $1.37 billion traded daily on average in the second quarter, compared with $1.07 billion a year earlier, according to data compiled by Bloomberg.

“The securities market staged a strong recovery,” Chief Executive Officer Magnus Bocker said in a statement. “If, as the market expects, a low interest rate environment prevails in 2010, this should continue to underpin turnover.”

Trading volumes tumbled in 2008 as the financial crisis dragged economies worldwide into recession. The benchmark Straits Times Index sank by a record 49% in 2008, then surged 64% last year as stimulus measures around the world helped revive the global economy.

Net income was affected by a one-off transition cost related to Bocker’s appointment. Without that charge, profit would have been $77 million, or 3% higher than last year, the statement said.

Singapore Exchange shares added 0.2% today to close at $8.36 before the release of the results, while the Straits Times Index added 0.1% to 2,912.02. The company will pay a quarterly dividend of 3.75 cents a share, up from 3.5 cents a year ago.

Bocker took over from Hsieh Fu Hua as the bourse’s chief executive on Dec 1. Bocker, previously president of Nasdaq OMX Group Inc., said at a media briefing on July 30 that attracting foreign listings will remain a priority for the company.

Singapore remains an attractive market for IPOs and the exchange expects listings from offshore marine, resources and financial services companies this year, Bocker said.