<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>dwsxxq.txt
<DESCRIPTION>DWSX
<TEXT>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2009 or

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to__________________

Commission File Number 0-31563

MORGAN STANLEY SPECTRUM CURRENCY L.P.

(Exact name of registrant as specified in its charter)

Delaware 13-4084211
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)

Demeter Management Corporation
522 Fifth Avenue, 13th Floor
New York, NY 10036
(Address of principal executive offices) (Zip Code)

Registrant?s telephone number, including area code (212) 296-1999

(Former name, former address and former fiscal year, if changed since
last report)

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.

Yes X No___________

Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate Web site, if any, every
Interactive Data File required to be submitted and posted pursuant to
Rule 405 of Regulation S-T (?232.405 of this chapter) during the
preceding 12 months (or for such shorter period that the registrant was
required to submit and post such files).

Yes No

Indicate by check mark whether the registrant is a large accelerated
filer, an accelerated filer, a non-accelerated filer, or a smaller
reporting company. See the definitions of ?large accelerated filer?,
?accelerated filer? and ?smaller reporting company? in Rule 12b-2 of the
Exchange Act.

Large accelerated filer_______ Accelerated filer_______
Non-accelerated filer X Smaller reporting company_______

Indicate by check mark whether the registrant is a shell company (as
defined in Rule 12b-2 of the Exchange Act). Yes___ No X

<page> <table> MORGAN STANLEY SPECTRUM CURRENCY L.P.

INDEX TO QUARTERLY REPORT ON FORM 10-Q

March 31, 2009
<caption>

PART I. FINANCIAL INFORMATION
<s> <c>
Item 1. Financial Statements (Unaudited)

Statements of Financial Condition as of March 31, 2009
and December 31, 2008 (Unaudited) 2

Statements of Operations for the Quarters
Ended March 31, 2009 and 2008 (Unaudited) 3

Statements of Changes in Partners? Capital for the
Quarters Ended March 31, 2009 and 2008 (Unaudited) 4

Statements of Cash Flows for the Quarters Ended
March 31, 2009 and 2008 (Unaudited) 5

Condensed Schedules of Investments as of March 31, 2009
and December 31, 2008 (Unaudited) 6

Notes to Financial Statements (Unaudited) 7-23

Item 2. Management?s Discussion and Analysis of
Financial Condition and Results of Operations 24-31

Item 3. Quantitative and Qualitative Disclosures About
Market Risk 32-42

Item 4. Controls and Procedures 42-43

Item 4T. Controls and Procedures 43

PART II. OTHER INFORMATION

Item 1A.Risk Factors 44

Item 6. Exhibits 44

</table>

<page> <table> PART I. FINANCIAL INFORMATION
Item 1. Financial Statements

MORGAN STANLEY SPECTRUM CURRENCY L.P.
STATEMENTS OF FINANCIAL CONDITION
(Unaudited)

<caption> March 31, December 31,
2009 2008
$ $
ASSETS
<s> <c> <c>
Trading Equity:
Unrestricted cash 78,222,017 92,837,025
Restricted cash 1,532,230 640,778

Total cash 79,754,247 93,477,803

Net unrealized loss on open contracts (MS&Co.) (1,320,395) (403,907)

Options purchased (premiums paid $4,730
and $45,729, respectively) 2,456 251

Total Trading Equity 78,436,308 93,074,147

Interest receivable (MS&Co.) 6,481 619

Total Assets 78,442,789 93,074,766

LIABILITIES AND PARTNERS? CAPITAL

Liabilities

Redemptions payable 4,291,831 4,139,379
Accrued brokerage fees (MS&Co.) 306,545 356,847
Accrued management fees 133,281 155,151
Options written (premiums received $0
and $24,780, respectively) ? 251

Total Liabilities 4,731,657 4,651,628

Partners? Capital

Limited Partners (6,804,551.929 and
7,843,447.630 Units, respectively) 72,969,058 87,533,608
General Partner (69,200.343 and
79,706.343 Units, respectively) 742,074 889,530

Total Partners? Capital 73,711,132 88,423,138

Total Liabilities and Partners? Capital 78,442,789 93,074,766
NET ASSET VALUE PER UNIT 10.72 11.16

<fn>

The accompanying notes are an integral part
of these financial statements.

- 2 - </table>

<page> <table> MORGAN STANLEY SPECTRUM CURRENCY L.P.
STATEMENTS OF OPERATIONS
(Unaudited)
<caption>
For the Quarters Ended March 31,

2009 2008
$ $
<s> <c> <c>
INVESTMENT INCOME
Interest income (MS&Co.) 21,843 469,991

EXPENSES
Brokerage fees (MS&Co.) 965,910 1,210,683
Management fees 419,962 526,384
Incentive fee ? 87,278

Total Expenses 1,385,872 1,824,345

NET INVESTMENT LOSS (1,364,029) (1,354,354)

TRADING RESULTS
Trading profit (loss):
Realized (1,025,336) 3,943,533
Net change in unrealized (897,813) 5,107,536

Total Trading Results (1,923,149) 9,051,069

NET INCOME (LOSS) (3,287,178) 7,696,715

NET INCOME (LOSS) ALLOCATION

Limited Partners (3,254,119) 7,613,362
General Partner (33,059) 83,353

NET INCOME (LOSS) PER UNIT

Limited Partners (0.44) 0.73
General Partner (0.44) 0.73

Units Units
WEIGHTED AVERAGE NUMBER
OF UNITS OUTSTANDING 7,418,471.753 10,468,732.212

<fn>

The accompanying notes are an integral part
of these financial statements.
</table>
<page> <table> MORGAN STANLEY SPECTRUM CURRENCY L.P.
STATEMENTS OF CHANGES IN PARTNERS? CAPITAL
For the Quarters Ended March 31, 2009 and 2008
(Unaudited)
<caption>

Units of
Partnership Limited General
Interest Partners Partner Total
$ $ $

<s> <c> <c> <c> <c>
Partners? Capital,
December 31, 2007 10,912,868.181 106,178,308 1,149,436 107,327,744

Offering of Units 80,404.392 823,758 ? 823,758

Net Income ? 7,613,362 83,353 7,696,715

Redemptions (893,382.789) (8,993,248) (64,421) (9,057,669)

Partners? Capital,
March 31, 2008 10,099,889.784 105,622,180 1,168,368 106,790,548

Partners? Capital,
December 31, 2008 7,923,153.973 87,533,608 889,530 88,423,138

Net Loss ? (3,254,119) (33,059) (3,287,178)

Redemptions (1,049,401.701) (11,310,431) (114,397) (11,424,828)

Partners? Capital,
March 31, 2009 6,873,752.272 72,969,058 742,074 73,711,132

<fn>

The accompanying notes are an integral part
of these financial statements. </table>

<page> <table> MORGAN STANLEY SPECTRUM CURRENCY L.P.
STATEMENTS OF CASH FLOWS
(Unaudited)

For the Quarters Ended March 31,

2009 2008
$ $

<s> <c> <c>
CASH FLOWS FROM OPERATING ACTIVITIES

Net income (loss) (3,287,178) 7,696,715
Noncash item included in net income (loss):
Net change in unrealized 897,813 (5,107,536)

(Increase) decrease in operating assets:
Restricted cash (891,452) 1,814,887
Net premiums paid for options purchased 40,999 ?
Interest receivable (MS&Co.) (5,862) 122,813

Increase (decrease) in operating liabilities:
Accrued brokerage fees (MS&Co.) (50,302) (37,352)
Accrued management fees (21,870) (16,240)
Net premiums received for options written (24,780) (126,030)
Accrued incentive fee ? 33,649

Net cash provided by (used for) operating activities (3,342,632) 4,380,906

CASH FLOWS FROM FINANCING ACTIVITIES

Cash received from offering of Units ? 968,252
Cash paid for redemptions of Units (11,272,376) (11,412,842)

Net cash used for financing activities (11,272,376) (10,444,590)

Net decrease in unrestricted cash (14,615,008) (6,063,684)

Unrestricted cash at beginning of period 92,837,025 110,971,546

Unrestricted cash at end of period 78,222,017 104,907,862

</table>

The accompanying notes are an integral part
of these financial statements.
<page> <table> MORGAN STANLEY SPECTRUM CURRENCY L.P.
CONDENSED SCHEDULES OF INVESTMENTS
March 31, 2009 and December 31, 2008 (Unaudited)
<caption>

Futures and Forward Contracts
Long
Unrealized
Gain/(Loss)

Percentage of
Net Assets
Short
Unrealized
(Loss)

Percentage of
Net Assets
Net
Unrealized
Gain/(Loss)

$
%
$
%
$

March 31, 2009, Partnership Net Assets: $73,711,132

<s>
<c>
<c>
<c>
<c>
<c>
Foreign currency
(270,849)
(0.37)
(1,166,093)
(1.58)
(1,436,942)

Grand Total:
(270,849)
(0.37)
(1,166,093)
(1.58)
(1,436,942)

Unrealized Currency Gain

0.16

116,547

Total Net Unrealized Loss on Open Contracts

Fair Value
$
Percentage of
Net Assets
%

Options purchased on Futures Contracts
?
?

Options purchased on Forward Contracts
2,456
?

Options written on Futures Contracts
?
?

Options written on Forward Contracts
?
?

December 31, 2008, Partnership Net Assets: $88,423,138

(1,320,395)

<s>
<c>
<c>
<c>
<c>
<c>
Foreign currency
79,116
0.09
(613,982)
(0.69)
(534,866)

Grand Total:
79,116
0.09
(613,982)
(0.69)
(534,866)

Unrealized Currency Gain

0.15

130,959

Total Net Unrealized Loss on Open Contracts

Fair Value
$
Percentage of
Net Assets
%

Options purchased on Futures Contracts
?
?

Options purchased on Forward Contracts
251
?

Options written on Futures Contracts
?
?

Options written on Forward Contracts
(251)
?

(403,907)
<fn>
The accompanying notes are an integral part
of these financial statements. </table>
<page> MORGAN STANLEY SPECTRUM CURRENCY L.P.
NOTES TO FINANCIAL STATEMENTS

March 31, 2009

(Unaudited)

The unaudited financial statements contained herein include, in
the opinion of management, all adjustments necessary for a fair
presentation of the financial condition and results of operations
of Morgan Stanley Spectrum Currency L.P. (the "Partnership").
The financial statements and condensed notes herein should be
read in conjunction with the Partnership?s December 31, 2008,
Annual Report on Form 10-K.

1. Organization
Morgan Stanley Spectrum Currency L.P. is a Delaware limited
partnership organized in 1999 to engage primarily in the
speculative trading of futures contracts, options on futures
contracts, and forward contracts in global currency markets
(collectively, ?Futures Interests?) (refer to Note 4.). The
Partnership is one of the Morgan Stanley Spectrum series of
funds, comprised of the Partnership, Morgan Stanley Spectrum
Global Balanced L.P., Morgan Stanley Spectrum Select L.P., Morgan
Stanley Spectrum Strategic L.P., and Morgan Stanley Spectrum
Technical L.P. (collectively, the ?Spectrum Series?).

<page> MORGAN STANLEY SPECTRUM CURRENCY L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

The Partnership may buy or write put and call options through
listed exchanges and the over-the-counter market. The buyer of an
option has the right to purchase (in the case of a call option) or
sell (in the case of a put option) a specified quantity of a
specific Futures Interest or underlying asset at a specified price
prior to or on a specified expiration date. The writer of an
option is exposed to the risk of loss if the market price of the
Futures Interest or underlying asset declines (in the case of a
put option) or increases (in the case of a call option). The
writer of an option can never profit by more than the premium paid
by the buyer but can lose an unlimited amount.

Premiums received/premiums paid from writing/purchasing options
are recorded as liabilities/assets on the Statements of Financial
Condition and are subsequently adjusted to fair values. The
difference between the fair value of the option and the premiums
received/premiums paid is treated as an unrealized gain or loss.

The Partnership?s general partner is Demeter Management
Corporation (?Demeter?). The commodity broker is Morgan Stanley &
Co. Incorporated (?MS&Co.?). MS&Co. also acts as the counterparty
on all trading of foreign currency forward contracts. Morgan

<page> MORGAN STANLEY SPECTRUM CURRENCY L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

Stanley Capital Group Inc. (?MSCG?) acts as the counterparty on
all trading of options on foreign currency forward contracts.
Demeter, MS&Co., and MSCG are wholly-owned subsidiaries of Morgan
Stanley. The trading advisors to the Partnership are C-View
International Limited, DKR Fusion Management L.P., FX Concepts
Trading Advisor, Inc., John W. Henry & Company, Inc., and Sunrise
Capital Partners, LLC (each individually, a ?Trading Advisor?, or
collectively, the ?Trading Advisors?).

2. Related Party Transactions
The Partnership?s cash is on deposit with MS&Co. in futures,
forward and options trading accounts to meet margin requirements
as needed. At each month end, MS&Co. pays the Partnership
interest income on 80% of the funds on deposit with the
commodity broker at a rate equal to the monthly average of the
4-week U.S. Treasury bill discount rate during such month. The
Partnership pays brokerage fees to MS&Co.

3. Income Taxes
No provision for income taxes has been made in the accompanying
financial statements, as partners are individually responsible
for reporting income or loss based upon their respective share of

<page> MORGAN STANLEY SPECTRUM CURRENCY L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

the Partnership?s revenues or expenses for income tax purposes.
The Partnership files U.S. federal and state tax returns.

Financial Accounting Standards Board ("the FASB") Interpretation
No. 48, "Accounting for Uncertainty in Income Taxes, an
interpretation of FASB Statement No. 109" ("FIN 48"), clarifies
the accounting for uncertainty in income taxes recognized in a
Partnership's financial statements, and prescribes a recognition
threshold and measurement attribute for financial statement
recognition and measurement of a tax position taken or expected
to be taken. The adoption of FIN 48 does not have a material
impact on the Partnership's financial statements. The 2005
through 2008 tax years generally remain subject to examination by
U.S. federal and most state tax authorities.

4. Financial Instruments
The Partnership trades Futures Interests. Futures and forwards
represent contracts for delayed delivery of an instrument at a
specified date and price. Risk arises from changes in the value
of these contracts and the potential inability of counterparties
to perform under the terms of the contracts. There are numerous
factors which may significantly influence the fair value of these
contracts, including interest rate volatility.

<page> MORGAN STANLEY SPECTRUM CURRENCY L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

The fair value of exchange-traded contracts is based on the
settlement price quoted by the exchange on the day with respect
to which fair value is being determined. If an exchange-traded
contract could not have been liquidated on such day due to the
operation of daily limits or other rules of the exchange, the
settlement price shall be the settlement price on the first
subsequent day on which the contract could be liquidated. The
fair value of off-exchange-traded contracts is based on the fair
value quoted by the counterparty.

The Partnership?s contracts are accounted for on a trade-date
basis and marked to market on a daily basis. The Partnership
accounts for its derivative investments in accordance with the
provisions of Statement of Financial Accounting Standards (?SFAS?)
No. 133, ?Accounting for Derivative Instruments and Hedging
Activities? (?SFAS No. 133?). SFAS No. 133 defines a derivative
as a financial instrument or other contract that has all three of
the following characteristics:

1) One or more underlying notional amounts or payment
provisions;
2) Requires no initial net investment or a smaller initial net
investment than would be required relative to changes in
market factors;
3) Terms require or permit net settlement.
<page> MORGAN STANLEY SPECTRUM CURRENCY L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

Generally, derivatives include futures, forward, swap or options
contracts, and other financial instruments with similar
characteristics such as caps, floors, and collars.

The net unrealized losses on open contracts, reported as a
component of ?Trading Equity? on the Statements of Financial
Condition, and their longest contract maturities were as follows:
Unrealized Losses
on Open Contracts Longest Maturities

Exchange- Off-Exchange- Exchange- Off-Exchange-
Date Traded Traded Total Traded Traded
$ $ $

Mar. 31, 2009 - (1,320,395) (1,320,395) - Jun. 2009
Dec. 31, 2008 - (403,907) (403,907) - Apr. 2009

The Partnership has credit risk associated with counterparty non-
performance. As of the date of the financial statements, the
credit risk associated with the instruments in which the
Partnership trades is limited to the amounts reflected in the
Partnership?s Statements of Financial Condition.

The Partnership also has credit risk because MS&Co. and/or MSCG
acts as the futures commission merchant or the counterparty, with
respect to most of the Partnership?s assets. Exchange-traded
futures, exchange-traded forward, and exchange-traded futures-

<page> MORGAN STANLEY SPECTRUM CURRENCY L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

styled options contracts are marked to market on a daily basis,
with variations in value settled on a daily basis. MS&Co., as a
commodity broker for the Partnership?s exchange-traded futures,
exchange-traded forward, and exchange-traded futures-styled
options contracts, is required, pursuant to regulations of the
Commodity Futures Trading Commission (?CFTC?), to segregate from
its own assets, and for the sole benefit of its commodity
customers, all funds held by it with respect to exchange-traded
futures, exchange-traded forward, and exchange-traded futures-
styled options contracts, including an amount equal to the net
unrealized losses on all open exchange-traded futures, exchange-
traded forward, and exchange-traded futures-styled options
contracts. With respect to the Partnership?s off-exchange-traded
forward currency contracts and forward currency options contracts,
there are no daily settlements of variation in value, nor is there
any requirement that an amount equal to the net unrealized gains
(losses) on such contracts be segregated. However, the
Partnership is required to meet margin requirements
equal to the net unrealized loss on open forward currency
contracts in the Partnership accounts with the counterparty, which
is accomplished by daily maintenance of the cash balance in a
custody account held at MS&Co. With respect to those off-

<page> MORGAN STANLEY SPECTRUM CURRENCY L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

exchange-traded forward currency contracts, the Partnership is at
risk to the ability of MS&Co., the sole counterparty on all such
contracts, to perform. With respect to these off-exchange-traded
forward currency options contracts, the Partnership is at risk to
the ability of MSCG, the sole counterparty on all such contracts,
to perform. The Partnership has a netting agreement with each
counterparty. These agreements, which seek to reduce both the
Partnership?s and the counterparties? exposure on off-exchange-
traded forward currency contracts, including options on such
contracts, should materially decrease the Partnership?s credit
risk in the event of MS&Co.?s or MSCG?s bankruptcy or insolvency.

<page> MORGAN STANLEY SPECTRUM CURRENCY L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

variation margin. Gains and losses on off-exchange-traded
forward currency contracts and forward currency options contracts
are settled upon termination of the contract. However, the
Partnership is required to meet margin requirements equal to the
net unrealized loss on open forward currency contracts in the
Partnership accounts with the counterparty, which is accomplished
by daily maintenance of the cash balance in a custody account
held at MS&Co.

Derivative Instruments and Hedging Activities
In March 2008, the FASB issued SFAS No. 161, ?Disclosures about
Derivative Instruments and Hedging Activities, an amendment of FASB
Statement No. 133? ("SFAS No. 161"). SFAS No. 161 is intended to
improve financial reporting about derivative instruments and
hedging activities by requiring enhanced disclosures to enable
investors to better understand how those instruments and activities
are accounted for; how and why they are used; and their effects on
a Partnership?s financial position, financial performance, and cash
flows. SFAS No. 161 is effective for financial statements issued
for fiscal years beginning after November 15, 2008, and interim
periods within those fiscal years.

<page> MORGAN STANLEY SPECTRUM CURRENCY L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

The Partnership?s objective is to profit from speculative trading
in Futures Interests. Therefore, the Trading Advisors for the
Partnership will take speculative positions in Futures Interests
where they feel the best profit opportunities exist for their
trading strategy. As such, the absolute quantity (the total of the
open long and open short positions) which has been presented, as
position direction is not an indicative factor in such volume
disclosures. In regards to foreign currency forward trades, each
notional quantity amount has been converted to an equivalent
contract based upon an industry convention.

The following table summarizes the valuation of the Partnership?s
investments by the above SFAS No. 161 disclosure as of March 31,
2009 and reflects the information outstanding at such time.
<table> <caption>
The Effect of Trading Activities on the Statements of Financial Condition for the Three Months Ended March 31, 2009:

Futures and Forward Contracts

Long
Unrealized
Gain

Long
L Unrealized
Loss

Short
Unrealized
Gain

Short
Unrealized
Loss

Net
Unrealized
Gain/(Loss)

Total number
of outstanding
contracts

$
$
$
$
$

<s>
<c>
<c>
<c>
<c>
<c>
<c>
March 31, 2009

K Foreign currency
680,984
(951,833)
174,124
(1,340,217)
(1,436,942)
4,840
K Total
680,984

(951,833)
174,124
(1,340,217)

(1,436,942)

K Unrealized currency gain

116,547

K Total net unrealized loss
on open contracts

(1,320,395)

Tr Options purchased
?
2,456
?
?

</table>

<page> MORGAN STANLEY SPECTRUM CURRENCY L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

Based upon the Trading Advisors? historical trading, it can
generally be expected that the Partnership will trade approximately
1,370 round turn contracts per million under management over the
course of a year or approximately 343 contracts in a quarter. Such
quarterly amount is based upon such contracts being evenly traded
throughout the year, but may be higher or lower for any individual
quarter. The Trading Advisors? volume will vary over time based
upon a multitude of factors, including but not limited to,
individual market price movement, individual market volatility and
individual market liquidity.

The following table summarizes the net trading results of the
Partnership during the quarter as required by SFAS No. 161.
<table> <caption>
The Effect of Trading Activities on the Statements of Operations for the Three Months Ended March 31, 2009 included in Total
Trading Results:

Type of Instrument
$
<s>
<c>
Forward currency
(1,908,737)
K Unrealized currency loss
(14,412)
K Total
(1,923,149)
</table>
Line Item on the Statements of Operations for the:
Three Months Ended March 31, 2009: <table> <caption>
<s>
<c>
Trading Results
$

Tr Realized
(1,025,336)
K Net change in unrealized
(897,813)
K Total Trading Results
(1,923,149)
</table>
As discussed in Note 1, the Partnership?s objective for investing in
these derivatives is for speculative trading.
<page> MORGAN STANLEY SPECTRUM CURRENCY L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

5. Fair Value Measurements
Management has continued to evaluate the application of SFAS No.
157 (?SFAS No. 157?), ?Fair Value Measurements? to the
Partnership, and has determined that SFAS No. 157 does not have a
material impact on the financial statements. Fair value is the
amount that would be recovered when an asset is sold or an amount
paid to transfer a liability, in an ordinary transaction between
market participants at the measurement date (exit price). Market
price observability is impacted by a number of factors, including
the types of investments, the characteristics specific to the
investment, and the state of the market (including the existence
and the transparency of transactions between market participants).
Investments with readily available actively quoted prices in an
ordinary market will generally have a higher degree of market
price observability and a lesser degree of judgment used in
measuring fair value.

SFAS No. 157 requires use of a fair value hierarchy that
prioritizes the inputs to valuation techniques used to measure
fair value into three levels: Level 1 ? unadjusted quoted market
prices in active markets for identical assets and liabilities;
Level 2 - inputs other than unadjusted quoted market prices that

<page> MORGAN STANLEY SPECTRUM CURRENCY L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

are observable for the asset or liability, either directly or
indirectly (including quoted prices for similar investments,
interest rates, credit risk); and Level 3 - unobservable inputs
for the asset or liability (including the Partnership?s own
assumptions used in determining the fair value of investments).

In certain cases, the inputs used to measure fair value may fall into
different levels of the fair value hierarchy. In such cases, an
investment?s level within the fair value hierarchy is based on the
lowest level of input that is significant to the fair value
measurement. The Partnership?s assessment of the significance of
particular input to the fair value measurement in its entirety
requires judgment, and considers factors specific to the investment.

The following tables summarize the valuation of the Partnership?s
investments by the above SFAS No. 157 fair value hierarchy as of
March 31, 2009 and December 31, 2008: <table> <caption>
March 31, 2009

Assets
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
Significant Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)

Total
<s>
<c>
<c>
<c>

<c>
Net unrealized loss on open contracts
-
$(1,320,395)
n/a

$(1,320,395)
Options purchased
-
$ 2,456
n/a

$ 2,456
</table>

<page> <table> <caption>
MORGAN STANLEY SPECTRUM CURRENCY L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2008

Assets
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
Significant Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)

Total
<s>
<c>
<c>
<c>

<c>
Net unrealized loss on open contracts
-
$ (403,907)
n/a

$ (403,907)
Options purchased
-
$ 251
n/a

$ 251

Liabilities

Options written
-
$ 251
n/a

$ 251

</table>

6. New Accounting Developments
In April 2009, the FASB issued FASB Staff Position (?FSP?) FAS No.
157-4, ?Determining Fair Value When the Volume and Level of
Activity for the Asset or Liability Have Significantly Decreased
and Identifying Transactions That Are Not Orderly? (?FSP FAS No.
157-4?). FSP FAS No. 157-4 provides additional guidance for
determining fair value and requires new disclosures regarding the
categories of fair value instruments, as well as the inputs and
valuation techniques utilized to determine fair value and any
changes to the inputs and valuation techniques during the period.
FSP FAS No. 157-4 is effective for interim and annual periods
ending after June 15, 2009. The Partnership is currently
evaluating the impact of the adoption of FSP FAS No. 157-4.

<page> MORGAN STANLEY SPECTRUM CURRENCY L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

In April 2009, the FASB issued FSP FAS No. 107-1 and Accounting
Principals Board (?APB?) No. 28-1, Interim Disclosures About Fair
Value of Financial Instruments (?FSP FAS No. 107-1? and ?APB No.
28-1?). The staff position requires fair value disclosures of
financial instruments on a quarterly basis, as well as new
disclosures regarding the methodology and significant assumptions
underlying the fair value measures and any changes to the
methodology and assumptions during the reporting period. FSP FAS
No. 107-1 and APB No. 28-1 are effective for interim and annual
periods ending after June 15, 2009. The Partnership is currently
evaluating the impact of the adoption of FSP FAS No. 107-1 and APB
No. 28-1.

7. Restricted and Unrestricted Cash
As reflected on the Partnership?s Statements of Financial
Condition, restricted cash equals the cash portion of assets on
deposit to meet margin requirements plus the cash required to
offset unrealized losses on foreign currency forwards and options
and offset losses on offset London Metal Exchange positions. All
of these amounts are maintained separately. Cash that is not
classified as restricted cash is therefore classified as
unrestricted cash.

<page> MORGAN STANLEY SPECTRUM CURRENCY L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

8. Subsequent Event.

On January 13, 2009, Morgan Stanley and Citigroup announced that
they had agreed to combine the Global Wealth Management Group of
Morgan Stanley and the Smith Barney division of Citigroup Global
Markets Inc. into a new joint venture (the ?Transaction?). The
joint venture will own Morgan Stanley Smith Barney LLC, a newly
formed investment advisor and broker dealer that will be
registered with the U.S. Securities and Exchange Commission and as
a non-clearing futures commission merchant with the Commodities
Futures Trading Commission. Upon the closing of the Transaction,
subsidiaries of Morgan Stanley collectively will have a 51 percent
ownership interest in the joint venture and Citigroup Inc.
(?Citi?) will have a 49 percent ownership interest in the joint
venture. The Transaction is expected to close by the end of the
third quarter of 2009.

As part of the Transaction, the Board of Directors of Demeter
resolved that Demeter should be converted from a Delaware
corporation to a Delaware limited liability company (the
?Conversion?). The Conversion became effective on April 30, 2009
and Demeter?s name changed to Demeter Management LLC.

<page> MORGAN STANLEY SPECTRUM CURRENCY L.P.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)

In addition, in the near future Morgan Stanley, the sole member of
Demeter, intends to contribute all of the membership interests in
Demeter (along with other Morgan Stanley subsidiaries being
contributed to the joint venture as part of the Transaction) to
Morgan Stanley Commercial Financial Services, Inc. It is
anticipated that on or about the time of the consummation of the
Transaction, Morgan Stanley Commercial Financial Services, Inc.
will contribute to Morgan Stanley JV Holdings LLC all of its in-
scope assets and liabilities (including all of the membership
interests of Demeter) (collectively, the ?Contribution?). Upon
the completion of both the Conversion and the Contribution,
Demeter will be a Delaware limited liability company that is a
wholly owned subsidiary of Morgan Stanley Smith Barney Holdings
LLC, which in turn will be owned 51 percent by Morgan Stanley and
49 percent by Citi.

At all times Demeter shall remain the General Partner of the
Partnership and at no time will it cease to exist. In addition,
neither the Conversion nor the Contribution will materially impact
the daily trading activities of the Partnership?s respective
commodity Trading Advisors. The Board of Directors of Demeter
believes that the Conversion and the Contribution shall not have a
material impact on the Partnership?s Limited Partners.
<page> Item 2. MANAGEMENT?S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS

Liquidity. The Partnership deposits its assets with MS&Co. as its
commodity broker in separate futures, forward and options trading
accounts established for each Trading Advisor. Such assets are
used as margin to engage in trading and may be used as margin
solely for the Partnership?s trading. The assets are held in either
non-interest bearing bank accounts or in securities and instruments
permitted by the CFTC for investment of customer segregated or
secured funds. Since the Partnership?s sole purpose is to trade in
futures, forwards and options, it is expected that the Partnership
will continue to own such liquid assets for margin purposes.

The Partnership?s investment in futures, forwards and options may,
from time to time, be illiquid. Most U.S. futures exchanges limit
fluctuations in prices during a single day by regulations referred
to as ?daily price fluctuations limits? or ?daily limits?. Trades
may not be executed at prices beyond the daily limit. If the price
for a particular futures or options contract has increased or
decreased by an amount equal to the daily limit, positions in that
futures or options contract can neither be taken nor liquidated
unless traders are willing to effect trades at or within the limit.
Futures prices have occasionally moved the daily limit for several
consecutive days with little or no trading. These market
conditions could prevent the Partnership from promptly liquidating
<page> its futures or options contracts and result in restrictions
on redemptions.

There is no limitation on daily price moves in trading forward
contracts on foreign currencies. The markets for some world
currencies have low trading volume and are illiquid, which may
prevent the Partnership from trading in potentially profitable
markets or prevent the Partnership from promptly liquidating
unfavorable positions in such markets, subjecting it to
substantial losses. Either of these market conditions could
result in restrictions on redemptions. For the periods covered by
this report, illiquidity has not materially affected the
Partnership?s assets.

There are no known material trends, demands, commitments, events,
or uncertainties at the present time that are reasonably likely to
result in the Partnership?s liquidity increasing or decreasing in
any material way.

Capital Resources. The Partnership does not have, nor does it
expect to have, any capital assets. Redemptions of units of
limited partnership interest (?Unit(s)?) in the future will affect
the amount of funds available for investments in futures, forwards
and options in subsequent periods. It is not possible to estimate
the amount, and therefore the impact, of future outflows of Units.
<page> There are no known material trends, favorable or
unfavorable, that would affect, nor any expected material changes
to, the Partnership?s capital resource arrangements at the present
time.

Off-Balance Sheet Arrangements and Contractual Obligations. The
Partnership does not have any off-balance sheet arrangements, nor
does it have contractual obligations or commercial commitments to
make future payments that would affect its liquidity or capital
resources.

Results of Operations
General. The Partnership?s results depend on the Trading Advisors
and the ability of each Trading Advisor?s trading program to take
advantage of price movements in the futures, forward and options
markets. The following presents a summary of the Partnership?s
operations for the three month periods ended March 31, 2009 and
2008, and a general discussion of its trading activities during
each period. It is important to note, however, that the Trading
Advisors trade in various markets at different times and that
prior activity in a particular market does not mean that such
market will be actively traded by the Trading Advisors or will be
profitable in the future. Consequently, the results of operations
of the Partnership are difficult to discuss other than in the
context of the Trading Advisors? trading activities on behalf of
<page> the Partnership during the period in question. Past
performance is no guarantee of future results.

The Partnership?s results of operations set forth in the financial
statements on pages 2 through 23 of this report are prepared in
accordance with accounting principles generally accepted in the
United States of America, which require the use of certain
accounting policies that affect the amounts reported in these
financial statements, including the following: the contracts the
Partnership trades are accounted for on a trade-date basis and
marked to market on a daily basis. The difference between their
original contract value and market value is recorded on the
Statements of Operations as ?Net change in unrealized trading
profit (loss)? for open (unrealized) contracts, and recorded as
?Realized trading profit (loss)? when open positions are closed
out. The sum of these amounts constitutes the Partnership?s
trading results. The market value of a futures contract is the
settlement price on the exchange on which that futures contract is
traded on a particular day. The value of a foreign currency
forward contract is based on the spot rate as of the close of
business. Interest income, as well as management fees, incentive
fees, and brokerage fees expenses of the Partnership are recorded
on an accrual basis.

Demeter believes that, based on the nature of the operations of
the Partnership, no assumptions relating to the application of
<page> critical accounting policies other than those presently
used could reasonably affect reported amounts.

For the Quarter Ended March 31, 2009
The Partnership recorded total trading results including interest
income totaling $(1,901,306) and expenses totaling $1,385,872,
resulting in a net loss of $3,287,178 for the quarter ended March
31, 2009. The Partnership?s net asset value per Unit decreased
from $11.16 at December 31, 2008 to $10.72 at March 31, 2009.

The most significant trading losses of approximately 0.5% were
incurred, primarily during January, from long positions in the
euro versus the U.S. dollar as the value of the euro moved lower
against the U.S. dollar on expectations the European Central Bank
would cut interest rates amid signs of economic slowing and
deterioration in the Euro-Zone. Additional losses of approximately
0.5% were incurred from long positions in the Japanese yen versus
the U.S. dollar as the value of the Japanese yen moved lower
against most of its rivals during January and February amid
speculation that the Bank of Japan might intervene to weaken the
currency, as well as on news that Japan?s trade deficit
substantially increased. Further losses were recorded during March
from newly established short positions in the Japanese yen as the
value of the Japanese yen reversed higher during the latter half
of the month amid consistently weak economic data out of Japan.
Further losses of approximately 0.5% were experienced from long
<page> positions in the Brazilian real versus the U.S. dollar as
the value of the Brazilian real moved lower throughout the
majority of the quarter on expectations that Brazil?s economy
might grow at the slowest pace in six years. Smaller losses of
0.4% and 0.3%, respectively, were recorded from short positions in
the Slovak koruna and Swiss franc versus the U.S. dollar primarily
during March as the value of the U.S. dollar reversed lower
against most of its rivals following the U.S. Federal Reserve?s
surprise plans to begin a more aggressive phase of quantitative
easing and economic stimulus spending. A portion of these losses
for the quarter was offset by gains of approximately 0.5%, 0.3%,
and 0.2%, respectively, achieved primarily during January from
short positions in the Polish zloty, New Zealand dollar, and
Russian ruble versus the U.S. dollar as the value of the U.S.
dollar increased against these currencies after a government
report showed the U.S. trade deficit narrowed by the largest
amount in 12 years. Additionally, the value of the New Zealand
dollar declined after the Reserve Bank of New Zealand signaled
that it might further reduce interest rates in order to stimulate
the economy of New Zealand.

For the Quarter Ended March 31, 2008
The Partnership recorded total trading results including interest
income totaling $9,521,060 and expenses totaling $1,824,345,
resulting in net income of $7,696,715 for the quarter ended March
<page> 31, 2008. The Partnership?s net asset value per Unit
increased from $9.84 at December 31, 2007, to $10.57 at March 31,
2008.

The most significant trading gains of approximately 3.0%, 1.8%,
1.0%, and 0.9% respectively, were experienced from long positions
in the euro, Swiss franc, Australian dollar, and Chilean peso
versus the U.S. dollar during February as the value of the U.S.
dollar weakened against most of its major rivals after weaker-
than-expected manufacturing data from the Federal Reserve Bank of
Philadelphia reignited fears of an economic slowdown in the U.S.
The value of the U.S. dollar continued to decline after U.S.
government reports showed a rise in unemployment and slower-than-
expected fourth quarter 2007 Gross Domestic Product growth.
Furthermore, the U.S. dollar weakened against its major rivals in
March following news of weaker-than-expected U.S. retail sales and
U.S. consumer confidence at a 16-year low. Finally, the value of
the U.S. dollar was negatively affected by several interest rate
cuts by the U.S. Federal Reserve as well as indications that
interest rates would continue to decline. Additional gains of
approximately 0.9% were achieved from short positions in the South
African rand relative to the U.S. dollar as the value of the South
African rand moved lower against most of its major rivals during
February and March amid pessimism about the long-term status of
the South African economy. Lastly, during March, gains of
approximately 0.9% were experienced from short positions in the
Korean won versus the U.S. dollar as the value of the Korean won
<page> decreased relative to the U.S. dollar at the beginning of
the month amid news of a widening Current-Account deficit in
Korea. A portion of these gains for the quarter was offset by
losses of approximately 0.3% from short positions in the Japanese
yen versus the U.S. dollar as the value of the Japanese yen
strengthened during January after a decline in global equity
markets and weaker-than-expected U.S. economic data caused
investors to reduce existing carry trade positions. Further
losses were incurred during February from newly established long
positions in the Japanese yen versus the U.S. dollar as the value
of the Japanese yen reversed lower following comments from the
Bank of Japan that the Japanese economy might be slowing.
Additional losses of approximately 0.3% were recorded from both
short and long positions in the Hungarian forint versus the U.S.
dollar as the value of the Hungarian forint moved without
consistent direction throughout the quarter amid conflicting
economic data out of Hungary. Finally, losses of approximately
0.2% were incurred from short positions in the British pound
versus the U.S. dollar as the value of the British pound
strengthened during January and February after retail sales in the
United Kingdom unexpectedly increased and minutes from the Bank of
England indicated the central bank had significant concerns about
accelerating inflation in the United Kingdom. As such, the value
of the British pound continued to move higher against the U.S.
dollar at the beginning of March after the Bank of England decided
to hold interest rates steady.
<page>
Item 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Introduction
The Partnership is a commodity pool engaged primarily in the
speculative trading of futures, forwards and options. The
market-sensitive instruments held by the Partnership are acquired
for speculative trading purposes only and, as a result, all or
substantially all of the Partnership?s assets are at risk of
trading loss. Unlike an operating company, the risk of market-
sensitive instruments is inherent to the primary business
activity of the Partnership.

The futures, forwards and options on such contracts traded by the
Partnership involve varying degrees of related market risk.
Market risk is often dependent upon changes in the level or
volatility of interest rates, exchange rates, and prices of
financial instruments and commodities, factors that result in
frequent changes in the fair value of the Partnership?s open
positions, and consequently in its earnings, whether realized or
unrealized, and cash flow. Gains and losses on open positions of
exchange-traded futures, exchange-traded forward, and exchange-
traded futures-styled options contracts are settled daily through
variation margin. Gains and losses on off-exchange-traded
forward currency contracts and forward currency options contracts
are settled upon termination of the contract. However, the
Partnership is required to meet margin requirements equal to the
<page> net unrealized loss on open forward currency contracts in
the Partnership accounts with the counterparty, which is
accomplished by daily maintenance of the cash balance in a
custody account held at MS&Co.

The Partnership?s total market risk may increase or decrease as
it is influenced by a wide variety of factors, including, but not
limited to, the diversification among the Partnership?s open
positions, the volatility present within the markets, and the
liquidity of the markets.

The face value of the market sector instruments held by the
Partnership is typically many times the applicable margin
requirements. Margin requirements generally range between 2% and
15% of contract face value. Additionally, the use of leverage
causes the face value of the market sector instruments held by
the Partnership to typically be many times the total
capitalization of the Partnership.

The Partnership?s past performance is no guarantee of its future
results. Any attempt to numerically quantify the Partnership?s
market risk is limited by the uncertainty of its speculative
trading. The Partnership?s speculative trading and use of
leverage may cause future losses and volatility (i.e., ?risk of
ruin?) that far exceed the Partnership?s experience to date under
the ?Partnership?s Value at Risk in Different Market Sectors?
<page> section and significantly exceed the Value at Risk (?VAR?)
tables disclosed.

Limited partners will not be liable for losses exceeding the
current net asset value of their investment.

Quantifying the Partnership?s Trading Value at Risk
The following quantitative disclosures regarding the
Partnership?s market risk exposures contain "forward-looking
statements" within the meaning of the safe harbor from civil
liability provided for such statements by the Private Securities
Litigation Reform Act of 1995 (set forth in Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934). All quantitative disclosures in this section are
deemed to be forward-looking statements for purposes of the safe
harbor, except for statements of historical fact.

The Partnership accounts for open positions on the basis of mark
to market accounting principles. Any loss in the market value of
the Partnership?s open positions is directly reflected in the
Partnership?s earnings and cash flow.

The Partnership?s risk exposure in the market sectors traded by
the Trading Advisors is estimated below in terms of VaR. The
Partnership estimates VaR using a model based upon historical
<page> simulation (with a confidence level of 99%) which involves
constructing a distribution of hypothetical daily changes in the
value of a trading portfolio. The VaR model takes into account
linear exposures to risk including equity and commodity prices,
interest rates, foreign exchange rates, and correlation among
these variables. The hypothetical changes in portfolio value are
based on daily percentage changes observed in key market indices
or other market factors (?market risk factors?) to which the
portfolio is sensitive. The one-day 99% confidence level of the
Partnership?s VaR corresponds to the negative change in portfolio
value that, based on observed market risk factors, would have
been exceeded once in 100 trading days, or one day in 100. VaR
typically does not represent the worst case outcome. Demeter
uses approximately four years of daily market data (1,000
observations) and re-values its portfolio (using delta-gamma
approximations) for each of the historical market moves that
occurred over this time period. This generates a probability
distribution of daily ?simulated profit and loss? outcomes. The
VaR is the appropriate percentile of this distribution. For
example, the 99% one-day VaR would represent the 10th worst
outcome from Demeter?s simulated profit and loss series.

The Partnership?s VaR computations are based on the risk
representation of the underlying benchmark for each instrument or
contract and do not distinguish between exchange and non-exchange
<page> dealer-based instruments. They are also not based on
exchange and/or dealer-based maintenance margin requirements.

VaR models, including the Partnership?s, are continually evolving
as trading portfolios become more diverse and modeling techniques
and systems capabilities improve. Please note that the VaR model
is used to numerically quantify market risk for historic
reporting purposes only and is not utilized by either Demeter or
the Trading Advisors in their daily risk management activities.
Please further note that VaR as described above may not be
comparable to similarly-titled measures used by other entities.

The Partnership?s Value at Risk in Different Market Sectors
The following table indicates the VaR associated with the
Partnership?s open positions as a percentage of total Net Assets
by primary market risk category at March 31, 2009, and 2008. At
March 31, 2009 and 2008, the Partnership?s total capitalization
was approximately $74 million and $107 million, respectively.

Primary Market March 31, 2009 March 31, 2008
Risk Category Value at Risk Value at Risk
Currency (0.42)% (1.18)%

The VaR for a market category represents the one-day downside
risk for the aggregate exposures associated with this market
category. Because the business of the Partnership is the
speculative trading of futures, forwards and options on such
<page> contracts, the composition of its trading portfolio can
change significantly over any given time period, or even within a
single trading day. Such change could positively or negatively
materially impact market risk as measured by VaR.

The table below supplements the quarter-end VaR set forth above
by presenting the Partnership?s high, low, and average VaR, as a
percentage of total Net Assets for the four quarter-end reporting
periods from April 1, 2008 through March 31, 2009.

Primary Market Risk Category High Low Average
Currency (1.12)% (0.16)% (0.61)%

Limitations on Value at Risk as an Assessment of Market Risk
VaR models permit estimation of a portfolio?s aggregate market
risk exposure, incorporating a range of varied market risks,
reflect risk reduction due to portfolio diversification or
hedging activities, and can cover a wide range of portfolio
assets. However, VaR risk measures should be viewed in light of
the methodology?s limitations, which include, but may not be
limited to the following:
* past changes in market risk factors will not always result in
accurate predictions of the distributions and correlations of
future market movements;
* changes in portfolio value caused by market movements may
differ from those of the VaR model;
<page>
* VaR results reflect past market fluctuations applied to
current trading positions while future risk depends on future
positions;
* VaR using a one-day time horizon does not fully capture the
market risk of positions that cannot be liquidated or hedged
within one day; and
* the historical market risk factor data used for VaR
estimation may provide only limited insight into losses that
could be incurred under certain unusual market movements.

In addition, the VaR tables above, as well as the past performance
of the Partnership, give no indication of the Partnership?s
potential "risk of ruin".

The VaR tables provided present the results of the Partnership?s
VaR for its market risk exposure at March 31, 2009 and 2008, and
for the four quarter-end reporting periods from April 1, 2008
through March 31, 2009. VaR is not necessarily representative of
the Partnership?s historic risk, nor should it be used to predict
the Partnership?s future financial performance or its ability to
manage or monitor risk. There can be no assurance that the
Partnership?s actual losses on a particular day will not exceed
the VaR amounts indicated above or that such losses will not
occur more than once in 100 trading days.

<page>
Non-Trading Risk
The Partnership has non-trading market risk on its foreign cash
balances. These balances and any market risk they may represent
are immaterial.

The Partnership also maintains a substantial portion of its
available assets in cash at MS&Co.; as of March 31, 2009, such
amount was equal to approximately 106% of the Partnership?s net
asset value. A decline in short-term interest rates would result
in a decline in the Partnership?s cash management income. This
cash flow risk is not considered to be material.

Materiality, as used throughout this section, is based on an
assessment of reasonably possible market movements and any
associated potential losses, taking into account the leverage,
optionality, and multiplier features of the Partnership?s market-
sensitive instruments, in relation to the Partnership?s Net
Assets.

Qualitative Disclosures Regarding Primary Trading Risk Exposures
The following qualitative disclosures regarding the Partnership?s
market risk exposures - except for (A) those disclosures that are
statements of historical fact and (B) the descriptions of how the
Partnership manages its primary market risk exposures -
constitute forward-looking statements within the meaning of
<page> Section 27A of the Securities Act and Section 21E of the
Securities Exchange Act. The Partnership?s primary market risk
exposures, as well as the strategies used and to be used by
Demeter and the Trading Advisors for managing such exposures, are
subject to numerous uncertainties, contingencies and risks, any
one of which could cause the actual results of the Partnership?s
risk controls to differ materially from the objectives of such
strategies. Government interventions, defaults and
expropriations, illiquid markets, the emergence of dominant
fundamental factors, political upheavals, changes in historical
price relationships, an influx of new market participants,
increased regulation, and many other factors could result in
material losses, as well as in material changes to the risk
exposures and the risk management strategies of the Partnership.
Investors must be prepared to lose all or substantially all of
their investment in the Partnership.

The following was the only trading risk exposure of the
Partnership at March 31, 2009. It may be anticipated, however,
that market exposure will vary materially over time.

Currency. The Partnership?s currency market exposure at March
31, 2009, was to exchange rate fluctuations, primarily
fluctuations which disrupt the historical pricing relationships
between different currencies and currency pairs. Interest rate
changes, as well as political and general economic conditions
<page>
influence these fluctuations. At March 31, 2009, the
Partnership?s major exposures were to the British pound, Japanese
yen, Australian dollar, New Zealand dollar, Canadian dollar,
euro, Swiss franc, Swedish krona, Turkish lira, Czech koruna,
Hungarian forint, Polish zloty, South African rand, Norwegian
krone, and Danish krone currency crosses, as well as to outright
U.S. dollar positions. Outright positions consist of the U.S.
dollar vs. other currencies. These other currencies include
major and minor currencies. Demeter does not anticipate that the
risk associated with the Partnership?s currency trades will
change significantly in the future.

Qualitative Disclosures Regarding Non-Trading Risk Exposure
The following was the only non-trading risk exposure of the
Partnership at March 31, 2009.

Foreign Currency Balances. The Partnership?s primary
foreign currency balances at March 31, 2009, were in euros,
Japanese yen, Norwegian kroner, New Zealand dollars,
Canadian dollars, Polish zlotych, Mexican pesos, Swiss
francs, British pounds, Hungarian forint, Australian
dollars, Singapore dollars, Turkish lire, Czech koruny,
Swedish kronor, South African rands, and Israeli shekels.
The Partnership controls the non-trading risk of foreign
<page> currency balances by regularly converting them back
into U.S. dollars upon liquidation of their respective
positions.

Qualitative Disclosures Regarding Means of Managing Risk Exposure
The Partnership and the Trading Advisors, separately, attempt to
manage the risk of the Partnership?s open positions in
essentially the same manner in all market categories traded.
Demeter attempts to manage market exposure by diversifying the
Partnership?s assets among different trading approaches through
the selection of Commodity Trading Advisors and by daily
monitoring their performance. In addition, the Trading Advisors
establish diversification guidelines, often set in terms of the
maximum margin to be committed to positions in any one market
sector or market-sensitive instrument.

Demeter monitors and controls the risk of the Partnership?s non-
trading instrument, cash. Cash is the only Partnership
investment directed by Demeter, rather than the Trading Advisors.

Item 4. CONTROLS AND PROCEDURES
As of the end of the period covered by this quarterly report, the
President and Chief Financial Officer of Demeter, the general
partner of the Partnership, have evaluated the effectiveness of
the Partnership?s disclosure controls and procedures (as defined
in Rules 13a-15(e) and 15d-15(e) of the Exchange Act), and have
judged such controls and procedures to be effective.
<page>
Changes In Internal Control Over Financial Reporting
There have been no material changes during the period covered by
this quarterly report in the Partnership?s internal control over
financial reporting (as defined in Rules 13a-15(f) and 15d-15(f)
of the Exchange Act) or in other factors that could significantly
affect these controls subsequent to the date of their evaluation.

Item 4T. CONTROLS AND PROCEDURES
Not applicable.

<page> PART II. OTHER INFORMATION
Item 1A. RISK FACTORS
There have been no material changes from the risk factors previously
referenced in the Partnership?s Report on Form 10-K for the fiscal
year ended December 31, 2008.

Item 6. EXHIBITS
31.01 Certification of President of Demeter Management
Corporation, the general partner of the Partnership,
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.02 Certification of Chief Financial Officer of Demeter
Management Corporation, the general partner of the
Partnership, pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.
32.01 Certification of President of Demeter Management
Corporation, the general partner of the Partnership,
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.
32.02 Certification of Chief Financial Officer of Demeter
Management Corporation, the general partner of the
Partnership, pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002.

<page>

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.

Morgan Stanley Spectrum Currency L.P.
(Registrant)

By: Demeter Management LLC
(General Partner)

May 15, 2009 By:/s/ Christian Angstadt
Christian Angstadt
Chief Financial Officer

The General Partner which signed the above is the only party
authorized to act for the Registrant. The Registrant has no
principal executive officer, principal financial officer,
controller, or principal accounting officer and has no Board of
Directors.

1822:
1823:

</TEXT>
</DOCUMENT>