MF Global, a New York-listed futures broker spun off this year by UK company Man Group, has agreed to pay $75m (€52m) to settle litigation brought against it in relation to a US hedge fund.

Steven Harmelin, the receiver of Philadelphia Alternative Asset Fund, said the agreement he had reached with MF Global comprised a payment of $69m into a restoration fund for the benefit of investors and $6m to cover legal costs. Court approval is to be sought within the next 10 days.