BANKS | Tue Jul 11, 2017 | 1:57pm EDT

HSBC, UBS settle U.S. rate-rigging litigation; total payout tops $408 million

HSBC Holdings Plc (HSBA.L) and UBS Group AG (UBSG.S) have each agreed to pay $14 million to settle private U.S. litigation accusing them of rigging an interest rate benchmark used in the $483 trillion derivatives market.

The preliminary settlements were disclosed in filings on Tuesday in the U.S. District Court in Manhattan, and require a judge's approval. They boost the total payout from 10 settling banks to $408.5 million. HSBC and UBS denied wrongdoing.

Several pension funds and municipalities had accused 14 banks of conspiring to rig the ISDAfix benchmark for their own gain from at least 2009 to 2012.

Companies and investors use ISDAfix to price swaps transactions, commercial real estate mortgages and structured debt securities.

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