Star traders Alan Howard and Chris Rokos have resolved a high-profile dispute over a non-compete agreement, paving the way for one of the most anticipated hedge fund launches of recent years.

Rokos, a co-founder of Howard's hedge fund firm Brevan Howard Asset Management, who resigned in 2012, had claimed in court filings in the island of Jersey that a five-year restriction on him launching a new fund was "contrary to the public interest".