TD Bank Financial Group and Ameritrade Holding Corp. today confirmed that they are in discussions regarding a potential transaction involving TD Waterhouse USA.

The announcement suggests that a possible merger between the American online brokerage and TD Waterhouse USA may be close.

“The companies will make no further comment until an agreement is reached,” TD said in a release. “There are no assurances that discussions between the companies will result in any transaction or on what terms a transaction may take place.”

Shares in TD Bank were up 90¢ at $53.10 in morning on the Toronto Stock Exchange.