BlackRock and Citadel Securities are among investors backing a group seeking to start a new national stock exchange in Texas.

TXSE Chairman and CEO James Lee said the Dallas-headquartered group has raised $120 million with the support of more than two dozen investors.

“Texas’s booming economy and the strong economic and population growth among states in the southeast quadrant of the U.S. present incredible opportunities for businesses — and ultimately the Texas Stock Exchange,” TXSE CEO James Lee said on LinkedIn.

The Wall Street Journal reported on the endeavor earlier, saying the exchange is billing itself as a “more-CEO friendly” alternative to the New York Stock Exchange and Nasdaq in the face of rising regulation and a “disaffection with increasing compliance costs.”

A contested Nasdaq rule requires listed companies to disclose diversity information on their board of directors. The SEC approved the plan in 2021, but it now faces a new challenge in a federal appeals court.

TXSE’s website said it will be a “fully electronic, national securities exchange that will seek registration with the U.S. Securities and Exchange Commission.” The TXSE is aiming to start trading in 2025 and host listings in 2026, according to the Journal’s report.

The Dallas Morning News reported TXSE will target companies in the “southeastern quadrant of the U.S.” In an interview with the newspaper, Lee thanked Texas Gov. Greg Abbott for his support and leadership.