UPDATE: Bank of America Downgrades FX Alliance

According to a research report published this morning, Bank of America has downgraded FX Alliance

from Neutral to Underperform. In the report, Bank of America said, "FX reported a solid 1Q result that beat expectations, but we are increasingly concerned that activity could retreat given recent Euro concerns, and mgmt. confirmed that 2Q volumes are tracking lower than March levels (but still up YoY). Given the retreat in client activity and growing Macro risks, we are taking a more conservative view on activity for the rest of the year, but offset with lower expenses, so our forecast remains $0.80. Note that we view non-cash stock compensation as a real ongoing expense and do not adjust for this in valuing FX." Bank of America reiterates its $17 PO on FX Alliance, which closed yesterday at $17.23.