An Italian court is expected to rule on Wednesday on whether four foreign banks missold derivatives to the city of Milan in a case seen as a litmus test for hundreds of local governments facing big losses from complex financial contracts.

Following are details about the case, the first criminal trial of this kind in Italy.

* Deutsche Bank , JP Morgan , UBS and Depfa Bank have been charged with aggravated fraud and accused of making up to 100 million euros ($132 million) in illicit profits from the sale of an interest-rate swap on a bond issued by the city of Milan in 2005. The banks, which also face possible fines of 1.5 million euros each and an order to pay back 72 million euros, deny any wrongdoing.

(Reporting By Silvia Aloisi; Editing by Erica Billingham)