Singapore Exchange (SGXL.SI), Asia’s second-largest listed bourse, reported a worse-than-expected 21% fall in quarterly net profit but said it was positive about prospects.

“If the current market conditions prevail, SGX should benefit from a potential increase in capital market activities, both in higher trading activity and more companies seeking to raise capital on our equity and debt listing platforms,” SGX CEO Magnus Bocker said in a statement on Monday.

SGX and rivals such as Hong Kong Exchanges and Clearing (0388.HK) have seen trading volumes surge in recent weeks as global investors allocate more funds to Asia.

But for the three months ended Sept 30, SGX’s net profit fell to $74.2 million from $94.1 million a year ago, hurt by weak trading volumes in July and August and higher technology-related costs.

SGX’s earnings were below with the $90 million forecast by four analysts polled by Reuters.

Most analysts are bullish on SGX’s prospects due to inflows into Asia as well as the expected rise in trading volumes from new financial products including ADRs of Chinese companies such as Internet leader Baidu (BIDU.O).

Trading in these American Depositary Receipts starts on Oct 22.

SGX said on Monday that Chi-East, its “dark pool” joint venture with Nomura’s (8604.T) Chi-X, has obtained central bank approval and will start operations by end-2010 as a pan-Asian crossing network for shares listed in Australia, Hong Kong, Japan and Singapore.

SGX’s shares have rallied more than 40% since June, mainly on expectations the bourse will report higher earnings in subsequent quarters due to higer inflows and improved contributions from new products.