UBS has reached an immunity deal with European Union antitrust authorities that will spare the giant Swiss bank from further fines for manipulation of benchmark interest rates, according to people familiar with the matter.

Under the arrangement, UBS is rewarded for cooperating with investigators and turning over information about other banks. Barclays previously reached a similar deal with EU authorities. That means that two of Europe's largest banks, which are at the centre of the interest-rate manipulation scandal, will escape punishment when EU authorities conclude their probe, which is expected within weeks although the timing could slip.