Merger discussions between Bank of New York Mellon Corp. and Northern Trust Corp. have reportedly been underway for over a year, according to a senior industry executive with direct knowledge of the matter. Although InvestmentNews reports that BNY Mellon only recently approached Northern Trust about a deal, insiders suggest negotiations may be far more advanced.

BNY Mellon's interest centers on Northern Trust's dominant presence in the Midwest and Florida markets, which would complement its own Chicago-based operations. However, Northern Trust publicly has maintained its commitment to independence, according to InvestmentNews.

Should BNY Mellon move forward with a formal bid, the deal would merge two of the world's largest asset-servicing firms, as reported by InvestmentNews. Both companies currently provide an array of services to financial advisors, broker-dealers, and institutional investors. A combination would create an investment management powerhouse overseeing more than $3 trillion in assets, reshaping the competitive landscape for custodians and clearing firms alike.

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