UPDATE 1-CBOE's quarterly profit narrowly beats estimates

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Aug 4 (Reuters) - CBOE Holdings Inc CBOE.O, the operator of the largest U.S. options exchange, reported a quarterly profit that narrowly beat analysts' estimates as its acquisition of Bats Global Markets helped drive transaction fees.

Transaction fees surged more than fourfold to $453.9 million in the second quarter ended June 30, with Bats contributing 25 percent.

CBOE agreed to buy Bats for $3.2 billion last year. (http://reut.rs/2huyqga)

"We remain intensely focused on realizing the benefits of the Bats acquisition and are pleased with the success of our integration to date," Chief Executive Edward Tilly said.

However, operating expenses more than doubled to $149.1 million due partly to higher compensation-related costs.

Chicago-based CBOE's net income allocated to common shareholders rose to $67.3 million, or 60 cents per share, in the latest quarter from $50.7 million, or 62 cents per share, a year earlier.

Excluding items, CBOE earned 87 cents per share, while analysts were expecting 86 cents, according to Thomson Reuters I/B/E/S.

Revenue jumped fivefold to $640.8 million, while total options average daily volume rose 15 percent to 7.03 billion contracts. (Reporting by Diptendu Lahiri in Bengaluru; Editing by Sai Sachin Ravikumar; Editing by Anil D'Silva)