Jamaican broker firm sees Dominican Republic as springboard into wider Central America

Dominicantoday.com, Santo Domingo , November 19 th 2007

Kingston. - According to Jamaican newspaper the Financial Gleaner, Jamaica Money Market Brokers (JMMB) has set sight on two Central American markets but is cagey about its plans ahead of research under way to determine entry.

But JMMB chief executive officer Keith Duncan told the paper in an interview that it's likely that he will be replicating strategy employed in the Dominican Republic - which straddles the Caribbean and Central America - where the brokerage bought controlling stake in BDI America, on which it has spent US$5 million to acquire and outfit.

"By the end of the year 2010, we intend to be in two other territories," said Duncan .

The explorations are currently being done in Costa Rica , Honduras and El Salvador , with indications that Costa Rica is likely to be one of the two.

The level of investment is also to be determined but assuming JMMB intends to maintain spend at the same levels as when it entered DR - its investments in Central America may top US$10 million.

However, much is dependent on market studies to determine the scope for business and existing opportunities.

"The successful launch of JMMB-BDI America in the Dominican Republic represents the entry point into the Central America free trade area," said Duncan .

Explaining his strategy being put into operation under the company's Vision 2010 plan, Duncan said he plans to establish a solid footing in the Dominican Republic to take advantage of the local market.

JMMB will use that market as spring board into other Spanish-speaking nations.

Essentially, JMMB BDI America is to be positioned as the hub of JMMB's operations in Central America .

Duncan said he would be targeting underdeveloped markets in an effort to share its Jamaican experience in the areas of securities trading, best practices and risk management.

In this way, Jamaica becomes the benchmark on which the group will judge the performance of its subsidiaries.

JMMB is capitalized at $7 billion while its assets at balance sheet date to March 30, were audited at $89 billion.

At home, JMMB is exploring entry into commercial banking.

Duncan said the spend in Dominican Republic was small compared to the US$25 million to US$100 million required to build out a bank or financial institution.

"We intend to start small then develop as with JMMB five years ago in Trinidad with an investment of US$1 million," remarked Duncan .

The company is already in the commercial banking sector in Trinidad and Tobago , with 80 per cent majority share of the small Intercommercial Bank Limited.

No acquisition plans are in the pipeline for the calendar year, but the company intends to start evaluating the market in Trinidad and Dom Rep for opportunities next financial year.

JMMB's broader 2010 plan is laid out in four areas - greenfield opportunities to drive its growth for the next three years, asset management growth, credit services, and expanded range of products.

(JMMB Dominicana is a wholly owned subsidiary of the JMMB Group that was created in 2006. Jamaica Money Market Brokers Limited ( JMMB ) was started in 1992 by a visionary woman called Joan Duncan who introduced the secondary money market to Jamaica . JMMB has in the past 15 years become the largest money market brokerage in the Caribbean with subsidiaries already established in Trinidad , Barbados , St. Lucia and the Dominican Republic . It is publicly listed on the Jamaica , Trinidad and Barbados stock exchanges.

Their aim is to bring their extensive expertise and knowledge of creating the secondary market to the retail and business community of the Dominican Republic ).