UK banks are set to face compensation claims that could amount to hundreds of millions of pounds in the UK courts after it emerged they have agreed to fork out nearly $1bn in compensation in the US investors who lost out from foreign exchange rate rigging.

Yesterday (22 October) it was revealed Barclays, HSBC and Royal Bank of Scotland (RBS) agreed to pay $924m (£600m) in compensation to US investors for losses suffered as a result of the banks' part in the foreign exchange rate rigging scandal.

The money forms the UK banks' share of a $2bn (£1.3bn) settlement with nine banks – including Bank of America, BNP Paribas, Citi, Goldman Sachs, JPMorgan and UBS – that was reached in August.

Barclays settled claims for $384m (£249m), HSBC agreed to hand over $285m (£185m) in compensation, while RBS will pay out $255m (£165m).

As Legal Week reported in March 2014, Barclays was represented by Sullivan & Cromwell, while Locke Lord advised HSBC and Davis Polk & Wardwell acted for RBS.

Seven banks are still yet to settle claims in the US – Bank of Tokyo-Mitsubishi, RBC Capital Markets, Societe Generale, Standard Chartered, Deutsche Bank, Credit Suisse, and Morgan Stanley.

We have clients signed up across the UK, Europe and Asia – all of whom suffered substantial losses on their foreign exchange transactions

The publication of the details on the settlement of the compensation claims in the US paves the way for further claims in the UK.

US litigation firm Scott + Scott, which was one of several firms bringing the US claims and only opened a London office over the summer, is currently preparing claims to be filed in the UK courts.

The firm's London head, ex-Freshfields senior associate Belinda Hollway, said: "We will soon be ready to bring an action against the banks in London. We have clients signed up across the UK, Europe and Asia – all of whom suffered substantial losses on their foreign exchange transactions as a result of manipulation by the banks."

The firm – which is still awaiting approval from the Solicitors Regulation Authority for its UK launch – has retained Daniel Jowell QC of Brick Court Chambers to prosecute Forex claims in Europe alongside fellow barristers Gerard Rothschild and Charlotte Thomas from the same chambers.