06:46 AM EDT, 06/05/2024 (MT Newswires) -- A group backed by BlackRock ( BLK ) and Citadel Securities plans to launch a stock exchange in Texas to challenge the New York Stock Exchange and Nasdaq (NDAQ), the Wall Street Journal reported on Wednesday.

The Texas Stock Exchange, which has raised about $120 million, plans to file registration documents with the Securities and Exchange Commission later this year, the report quoted TXSE's chief executive officer, James Lee, as saying. The stock exchange aims to begin trading next year and have its first listing in 2026, the report added.

The exchange seeks to attract companies frustrated with compliance costs and board diversity rules at Nasdaq and NYSE, the report said.

TXSE will be entirely electronic but plans to have a physical presence in downtown Dallas, the report said. The exchange plans to compete for primary and dual listings and exchange-traded products.

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

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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