A group of investors backed by BlackRock and Citadel Securities is planning to start a new U.S. national stock exchange in Texas, a spokesperson for Citadel Securities said on Tuesday.

The Texas Stock Exchange, which has raised about $120 million, plans to file registration documents with the U.S. Securities and Exchange Commission (SEC) later this year, The Wall Street Journal reported earlier, citing CEO James Lee.

BlackRock did not immediately respond to a Reuters request for comment.

The TXSE, as it is known, plans to compete for primary and dual listings and aims to start in 2025 and host its first listing in 2026.

The stock exchange aims to attract listings of exchange-traded products and aims to challenge increasing compliance costs at Nasdaq and New York Stock Exchange (NYSE), and newer rules like the one setting targets for board diversity at Nasdaq.