(Reuters) - A group backed by BlackRock ( BLK ) and Citadel Securities is planning to start a new national stock exchange in Texas, the Wall Street Journal reported on Tuesday.

The Texas Stock Exchange, which has raised about $120 million, plans to file registration documents with the Securities and Exchange Commission (SEC) later this year, the report added, citing CEO James Lee.

BlackRock ( BLK ) and Citadel did not immediately respond to Reuters' request for comment.

The TXSE, as it is known, aims to facilitate trades in 2025 and host its first listing in 2026, the report said, adding that the exchange plans to compete for primary and dual listings.

It also hopes to attract listings of exchange-traded products and aims to challenge increasing compliance costs at Nasdaq and NYSE, and newer rules like one setting targets for board diversity at Nasdaq, the report added.

(Reporting by Angela Christy in Bengaluru; Editing by Alan Barona and Varun H K)