Sabrina Gordon, Business Reporter

Keith Duncan, chief executive officer of Jamaica Money Market Brokers, says the Dominican Republic business should turn a profit in two years. - File

Jamaica Money Market Brokers, whose footprint has now extended to the Dominican Republic, has invested US$3.5 million ($238 million) in JMMB Dominicana more than a year into its establishment, a portion of which is financing its acquisition of a new brokerage house in Santo Domingo.

The investment also covers the acquisition of office space, purchase of bonds, and some administrative expenses.

JMMB Dominicana, headed by Guillermo Arancibia, is operating from the Acropolis Building in the financial hub of Santa Domingo, employing seven full-time traders and other sales staff, group marketing manager, Marguerite Cremin, told the Financial Gleaner.

Regular Junkets

JMMB Kingston's Curtis McDowell is also on board, while CEO Keith Duncan and sibling Donna Duncan Scott and Cremin take regular junkets to Santo Domingo.

Last week, at a briefing in Kingston, Keith Duncan told investors that JMMB Dominicana remains in the early operational stages.

But, describing the team in place as "vibrant and experienced", he said the Dom. Rep. business should "deliver profitability" in two years.

JMMB, while not disclosing how much of the US$3.5 million is being invested in its new acquisition, said it was taking an 80 per cent stake in BDI America.

That deal is close to finalisation, said Cremin.

The other 20 per cent share is to be retained and shared by BDI America, Group America and an unnamed individual investor.

Once the deal is sealed, Cremin said JMMB Dominicana would be merged with BDI to become JMMB BDI America.

Arancibia will remain as CEO.

Promotional Blitz

The new company's roll-out will be accompanied by a promotional blitz, targeted for September, to fully announce JMMB's presence in that market, Cremin said.

JMMB has, in the past 15 years, become the largest money-market brokerage in the Caribbean, with subsidiaries already established in Trinidad, Barbados and St. Lucia.

Cremin said JMMB would position itself in the Dom. Rep. market as a brokerage offering "real, lucrative, safe investment opportunities for the first time."

The investment firm remains fairly low key as is it still in the process of getting approved by the Superintendent of Valores (SIV), the counterpart to Jamaica's Financial Services Commission.

Once registered by SIV, Cremin says JMMB will be able to offer its full suite of products, including repurchase agreements, corporate finance services, foreign-exchange trading, consumer finance, financial planning consultations, mutual funds, and "a range of products and services that meet the appetites of all levels of risk," said Cremin.

sabrina.gordon@gleanerjm.com