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UPDATE 2-CME profit beats on higher transaction fees

* Q3 adjusted EPS $1.19 vs est $1.16

* Clearing and transaction fees rise 7.4 pct (Adds details on tax provisions, I/B/E/S estimates)

Oct 26 (Reuters) - CME Group Inc, the world's largest futures market operator, beat Wall Street quarterly profit estimates on increased clearing and transaction fees despite drastically higher income taxes.

The company, which owns the Chicago Board of Trade and other futures exchanges, said its revenue from clearing and transaction fees rose 7.4 percent to $756.2 million in the third quarter on higher average daily volume (ADV).

The exchange's ADV rose 9.7 percent to 15.7 million contracts in the quarter ended Sept. 30.

Excluding items, CME earned $1.19 per share, brushing past the average analyst estimate of $1.16, according to Thomson Reuters I/B/E/S.

Revenue jumped 5.8 percent to $890.8 million.

However, the Illinois-based company reported a 34.7 percent fall in profit, hurt by higher income tax provisions that rose nearly four-fold to $298.7 million.

Equity trading slumped 8.8 percent, owing to a less volatile market as compared to last year, which was marked with uncertainties over Brexit and U.S. election. (Reporting by Roopal Verma in Bengaluru; Editing by Maju Samuel)