UPDATE: BGB Securities Initiates GAIN Capital Holdings at Hold; Valuation Fair

BGB Securities initiated coverage on GAIN Capital Holdings (NYSE: GCAP) with a Hold rating. BGB Securities noted, "Even while the firm's institutional business has gained significant traction, related revenue has proven merely a surrogate for declining retail revenue owing to to sidelined retail investors and increased competition from closest competitor FXCM. And we don't expect FXCM to stop turning the screws any time soon: For some time managements of FXCM and GCAP have eschewed the merits of a combination but FXCM has been intent on lowering the “ask.” As such, although GCAP's shares price of ~$4.00 includes $1.50 of excess cash, with the aforementioned challenges likely continuing to pressure EPS, we view the shares fairly priced and initiate coverage with a HOLD rating."GAIN Capital Holdings closed at $3.95 on Friday.