LONDON (Reuters) - The world's biggest banks have agreed to change rules that govern the US$700 trillion derivatives market to avert potential chaos in times of crisis, the Financial Times reported.

Eighteen banks, ranging from Credit Suisse to Goldman Sachs, have agreed to give up the right to "close out" deals on derivatives contracts if a financial institution runs into trouble, the newspaper said, citing people familiar with the matter.

When Lehman Brothers collapsed in September 2008, there was a rush to close derivatives contracts on the bank's books, which caused chaos in the financial markets.

The agreement to change the protocols governing the derivatives market, which will take effect from Jan. 1, 2015, will be announced in the next few days, the Financial Times said.