NEW YORK ― US trading moves to a shorter settlement on Tuesday, which regulators hope will reduce risk and improve efficiency in the world's largest markets, but is expected to temporarily increase transaction failure for investors.

To comply with a rule change the US Securities and Exchange Commission (SEC) adopted last February, investors in US equities, corporate and municipal bonds, and other securities must settle their transactions one business day after the trade instead of two as of May 28. Canada, Mexico and Argentina sped up their market transactions a day earlier, changing to one day on Monday. The United Kingdom is expected to follow in 2027, and Europe is considering the change.