Regulators leading the world-wide investigation into interest-rate manipulation are in advanced talks with Icap to settle a civil probe into the brokerage firm's alleged involvement in the scandal, according to people familiar with the negotiations.

London-based Icap, a top interdealer broker, is hammering out a settlement agreement with the US Justice Department, the Commodity Futures Trading Commission and the UK's Financial Conduct Authority, said the people close to the talks.