UPDATE 1-Interactive Brokers Q3 profit lags Wall Street

* Q3 profit falls 69 pct

* Revenue from market making down 58 pct

* Shares down 7 pct

Oct 22 (Reuters) - Interactive Brokers Group Inc (IBKR.O) reported quarterly profit that fell short of analysts' expectations on lower revenue from the derivatives trader's market making segment, sending its shares down 7 percent.

Third-quarter net income available to common shareholders was $8.5 million, or 20 cents a share, compared with $27.2 million, or 65 cents a share, in the year-ago period.

Analysts expected the company to earn 31 cents a share, according to Thomson Reuters I/B/E/S.

Revenue from the company's market making segment fell 58 percent to $150.3 million, while that from the brokerage segment was down about $13 million at $121.5 million.

Cleared daily average revenue trades or DARTs -- a key measure of trading activity for retail brokerage firms -- fell 9 percent to 307,000 the company said.

Options contracts in the company's market making segment fell 27 percent to 100,624 in the quarter.

Shares of the company were trading down $1.34 at $18.25 after the bell. The stock, which has gained 12 percent in value since the beginning of the year, closed at $19.56 (Reporting by Sweta Singh in Bangalore; Editing by Aradhana Aravindan)