Broker-dealers buying back auction-rate securities from their customers must report the purchases under the Municipal Securities Rulemaking Board's Real-Time Transaction Reporting System, the MSRB stated in a notice issued yesterday.

In a footnote in the notice, the board also warned that users of the price transparency system should not view the ARS buybacks - many of which are resulting from settlement agreements in principle that have been reached between broker-dealer firms and federal and state regulators - as a sign that the ARS market is recovering.

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