* Q3 revenue at top 10 investment banks $36.5 bln
* FICC revenue up 16 pct amid higher volatility
* FY revenue to be little changed
LONDON, Nov 13 (Reuters) - Banks' financial trading revenuesrose in the third quarter thanks to an increase in marketvolatility, but the rise was not enough to offset the fall seenin the first half of the year, according to a new survey onFriday.
Trading revenue for the top 10 global investment bankstotalled $36.5 billion in the three months to September, a riseof 11 percent on the same period a year ago, according toindustry analytics firm Coalition.
This was largely driven by a 16 percent rise in fixedincome, currencies and commodities (FICC), which benefited fromgreater volatility caused by uncertainty over U.S. and Europeanmonetary policies and geo-political instability.
Coalition does not break out third-quarter revenues bysegment, but said rates and foreign exchange picked up in thethree months to end-September.
That marks a change from previous months, when the lowinterest rate environment together with the effect of tougherregulations forcing banks to hold more capital squeezed returns.
The first half weakness was reflected in year-to-date FICCrevenues, which were 7 percent behind last year, Coalition said.
In equities, revenue was $9.9 billion, 3 percent up on lastyear. Growth came from prime services, as hedge funds, sittingon record assets under management, boosted activity.
Investment banking divisions (IBDs), which underwrite andarrange share issues and other deals, saw revenue climb 12percent to $9.4 billion in the third quarter.
Coalition said the availability of cheap financing had givencompanies the confidence to pursue deals, while favourableinvestor sentiment supported stock market listings.
IBD was the only area expected to deliver annual growth.Coalition forecast an 11 percent rise in full-year revenue atIBDs, while FICC and equities were seen down 4 percent and 5percent, respectively.
Total annual trading revenue will be little changed from theyear before at $152.7 billion.
The data showed that banks' restructuring continued into thethird quarter, with headcount down 4 percent year-on-year. Alldivisions saw cuts, Coalition said.
Coalition tracks the performance of Bank of America MerrillLynch, Barclays, BNP Paribas, Citi, Credit Suisse, Deutsche Bank,Goldman Sachs, JPMorgan, Morgan Stanley and UBS.
(Reporting by Clare Hutchison and Jamie McGeever; editing byKeiron Henderson)