|   | MORGAN STANLEY SMITH BARNEY SPECTRUM CURRENCY L.P.     |   |
|--------|--------------------------------------------------------|--------|
|   | (Exact name of registrant as specified in its charter) |   |

|                                     | Delaware                                                                                                        |       | 13-4084211                          |
|------------------------------------------|-----------------------------------------------------------------------------------------------------------------|------------|-------------------------------------|
|                                     |      (State or other jurisdiction of     incorporation or organization) |       | (I.R.S. EmployerIdentification No.) |
|                                     |                                                                                                            |       |                                |
| Ceres Managed Futures LLC                |                                                                                                            |       |
| 522 Fifth Avenue, 14th Floor             |                                                                                                            |       |
| New York, NY                             |                                                                                                            | 10036      |
| (Address of principal executive offices) |                                                                                                            | (Zip Code) |

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

| Large accelerated filer o | Accelerated filer o         |
|---------------------------|-----------------------------|
| Non-accelerated filer x   | Smaller reporting company o |

----

|     | PART I. FINANCIAL INFORMATION                                                                   |             |
|----------|-------------------------------------------------------------------------------------------------|------------------|
|     |                                                                                            |             |
| Item 1.  | Financial Statements (Unaudited)                                                                |             |
|     |                                                                                            |             |
|     | Statements of Financial Condition as of March 31, 2011 and December 31, 2010                    | 2                |
|     |                                                                                            |             |
|     | Condensed Schedule of Investments as of March 31, 2011                                          | 3                |
|     |                                                                                            |             |
|     | Condensed Schedule of Investments as of December 31, 2010                                       | 4                |
|     |                                                                                            |             |
|     | Statements of Income and Expenses for the Quarters Ended March 31, 2011 and 2010                | 5                |
|     |                                                                                            |             |
|     | Statements of Changes in Partners’ Capital for the Quarters Ended March 31, 2011 and 2010 | 6                |
|     |                                                                                            |             |
|     | Notes to Financial Statements                                                                   |   7-21 |
|     |                                                                                            |             |
| Item 2.  | Management’s Discussion and Analysis of Financial Condition and Results of Operations     | 22-27            |
|     |                                                                                            |             |
| Item 3.  | Quantitative and Qualitative Disclosures About Market Risk                                      | 27-34            |
|     |                                                                                            |             |
| Item 4.  | Controls and Procedures                                                                         | 34-35            |
|     |                                                                                            |             |
|     | PART II. OTHER INFORMATION                                                                      |             |
|     |                                                                                            |             |
| Item 1A. | Risk Factors                                                                                    | 36               |
|     |                                                                                            |             |
| Item 6.  | Exhibits                                                                                        | 36               |

----

|                                                                   | March 31,        |   | December 31,     |
|------------------------------------------------------------------------|------------------|--------|------------------|
|                                                                   | 2011             |   | 2010             |
| ASSETS                                                                 | $                |   | $                |
|                                                                   |             |   |             |
| Trading Equity:                                                        |             |   |             |
|                                                                   |             |   |             |
| Unrestricted cash                                                      | 43,623,269  |   | 47,835,799  |
| Restricted cash                                                        | 624,273     |   | 88,858      |
|                                                                   |             |   |             |
| Total cash                                                             | 44,247,542  |   | 47,924,657  |
|                                                                   |             |   |             |
| Net unrealized gain (loss) on open contracts (MS&Co.)              | (65,239)    |   | 1,118,436   |
|                                                                   |             |   |             |
| Options purchased (premiums paid $30,347 and $2,239, respectively)     | 64,877      |   | 4,459       |
|                                                                   |             |   |             |
| Total Trading Equity                                                   | 44,247,180  |   | 49,047,552  |
|                                                                   |             |   |             |
| Interest receivable (MSSB)                                             | 2,371       |   | 3,168       |
|                                                                   |             |   |             |
| Total Assets                                                           | 44,249,551  |   | 49,050,720  |
|                                                                   |             |   |             |
| LIABILITIES AND PARTNERS’ CAPITAL                                |             |   |             |
|                                                                   |             |   |             |
| Liabilities:                                                           |             |   |             |
|                                                                   |             |   |             |
| Redemptions payable                                                    | 521,770     |   | 765,167     |
| Accrued brokerage fees (MS&Co.)                                    | 172,754     |   | 183,824     |
| Accrued management fees                                                | 75,110      |   | 79,923      |
| Options written (premiums received $44,781 and $0, respectively)       | 70,433      |   | –          |
|                                                                   |             |   |             |
| Total Liabilities                                                      | 840,067     |   | 1,028,914   |
|                                                                   |             |   |             |
| Partners’ Capital:                                               |             |   |             |
|                                                                   |             |   |             |
| Limited Partners (4,804,686.305 and 4,966,477.604 Units, respectively) | 42,926,175  |   | 47,504,374  |
| General Partner (54,096.343 and 54,096.343 Units, respectively)        | 483,309     |   | 517,432     |
|                                                                   |             |   |             |
| Total Partners’ Capital                                          | 43,409,484  |   | 48,021,806  |
|                                                                   |             |   |             |
| Total Liabilities and Partners’ Capital                          | 44,249,551  |   | 49,050,720  |
|                                                                   |             |   |             |
| NET ASSET VALUE PER UNIT                                               | 8.93        |   | 9.57        |

----

| Futures and Forward Contracts Purchased       | Net unrealized gain/(loss) on open contracts                                                                                                                   | % ofPartners’ Capital                                                                                                                     |
|-----------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|
|                                          | $                                                                                                                                                              |                                                                                                                                            |
| Foreign currency                              |      190,138                                                                                                                          |   0.44                                                          |
|                                          |                                                                                                                                                           |                                                                                                                                            |
| Total Futures and Forward Contracts Purchased |         190,138                                                                                                        |    0.44                                                    |
|                                          |                                                                                                                                                           |                                                                                                                                            |
|                                          |                                                                                                                                                           |                                                                                                                                            |
| Futures and Forward Contracts Sold            |                                                                                                                                                           |                                                                                                                                            |
|                                          |                                                                                                                                                           |                                                                                                                                            |
| Foreign currency                              |      (344,785)                                                                                                                        |         (0.79)                                                                                          |
|                                          |                                                                                                                                                           |                                                                                                                                            |
| Total Futures and Forward Contracts Sold      |    (344,785)                                                                                                                                    |      (0.79)                                                                                                            |
|                                          |                                                                                                                                                           |                                                                                                                                            |
| Unrealized Currency Gain                      |         89,408                                                                                                         |                         0.21 |
|                                          |                                                                                                                                                           |                                                                                                                                            |
| Net fair value                                |             (65,239)              |                       (0.14)           |
|                                          |                                                                                                                                                           |                                                                                                                                            |
|                                          |                                                                                                                                                           |                                                                                                                                            |
|  Options Contracts                       | Fair Value                                                                                         | % of           Partners’ Capital           |
|                                          |                                                                                                                                                           |                                                                                                                                            |
| Options purchased on Forward Contracts        | 64,877                                                                                             | 0.15                                                                                               |
| Options written on Forward Contracts          | (70,433)                                                                                                | (0.16)                                                                                                  |
|                                          |                                                                                                                                                           |                                                                                                                                            |
|                                          |                                                                                                                                                           |                                                                                                                                            |
|                                          |                                                                                                                                                           |                                                                                                                                            |

----

| Futures and Forward Contracts Purchased       | Net unrealized gain/(loss) on open contracts | % ofPartners’ Capital                                                                          |
|-----------------------------------------------|----------------------------------------------|------------------------------------------------------------------------------------------------------|
|                                          | $                                            |                                                                                                 |
| Foreign currency                              |    1,089,617                  |   2.27                         |
|                                          |                                         |                                                                                                 |
| Total Futures and Forward Contracts Purchased | 1,089,617                                    |    2.27              |
|                                          |                                         |                                                                                                 |

| Futures and Forward Contracts Sold       |                                                                                      |                                                                                                                                                                                     |
|------------------------------------------|-------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                     |                                                                                      |                                                                                                                                                                                     |
| Foreign currency                         |      (79,464)                                                    |         (0.17)                                                                                                                                   |
|                                     |                                                                                      |                                                                                                                                                                                     |
| Total Futures and Forward Contracts Sold |      (79,464)                                                    |      (0.17)                                                                                                                                                     |
|                                     |                                                                                      |                                                                                                                                                                                     |
| Unrealized Currency Gain                 |       108,283                                               |                         0.23                                          |
|                                     |                                                                                      |                                                                                                                                                                                     |
| Net fair value                           |          1,118,436                                |                         2.33                                          |
|                                     |                                                                                      |                                                                                                                                                                                     |
|                                     |                                                                                      |                                                                                                                                                                                     |
|  Options Contracts                  | Fair Value                         | % of              Partners’ Capital              |
|                                     |                                                                                      |                                                                                                                                                                                     |
| Options purchased on Forward Contracts   | 4,459               | 0.01                                                                                                                                   |

----

|                                    | For the Quarters Ended March 31, |
|-----------------------------------------|----------------------------------|
|                                    |                             |   |   |
|                                    | 2011                             |   | 2010 |
|                                    | $                                |   | $ |
|  INVESTMENT INCOME                 |                             |   |   |
| Interest income (MSSB & MS&Co.) | 10,706                 |   | 6,682  |
|                                    |                             |   |   |
|  EXPENSES                          |                             |   |   |
| Brokerage fees (MS&Co.)             | 533,401                |   | 681,842  |
| Management fees                         | 231,913                |   | 296,453  |
|                                    |                             |   |   |
| Total Expenses                          | 765,314                |   | 978,295  |
|                                    |                             |   |   |
|  NET INVESTMENT LOSS               | (754,608)                   |   | (971,613)  |
|                                    |                             |   |   |
|  TRADING RESULTS                   |                             |   |   |
|  Trading profit (loss):            |                             |   |   |
| Realized                                | (1,208,516)                 |   | (553,181)  |
| Net change in unrealized                |   (1,177,017)               |   |     838,087 |
|                                    |                             |   |   |
| Total Trading Results                   |  (2,385,533)                |   |  284,906 |
|                                    |                             |   |   |
|  NET LOSS                          | (3,140,141)                 |   | (686,707)  |
|                                    |                             |   |   |
|  NET LOSS ALLOCATION               |                             |   |   |
|                                    |                             |   |   |
| Limited Partners                        | (3,106,018)                 |   | (679,739)  |
| General Partner                         | (34,123)                    |   | (6,968)   |
|                                    |                             |   |   |
|  NET LOSS PER UNIT*                |                             |   |   |
|                                    |                             |   |   |
| Limited Partners                        | (0.64)                      |   | (0.12)  |
| General Partner                         | (0.64)                      |   | (0.12)  |
|                                    |                             |   |   |
|                                    | Units                            |   | Units |
|  WEIGHTED AVERAGE NUMBER           |                             |   |   |
|  OF UNITS OUTSTANDING              | 4,972,488.162               |   | 5,960,682.085  |

----

|                     | Units of            |   |              |          |           |   |                                                                                                                       |
|--------------------------|---------------------|--------|-------------------|---------------|----------------|--------|----------------------------------------------------------------------------------------------------------------------------|
|                     | Partnership         |   | Limited           |          | General        |   |                                                                                                                       |
|                     | Interest            |   | Partners          |          | Partner        |   | Total                                                                                                                      |
|                     |                |   | $                 |          | $              |   |                      $ |
| Partners’ Capital, |                |   |              |          |           |   |                                                                                                                       |
| December 31, 2010        | 5,020,573.947  |   | 47,504,374   |          | 517,432   |   | 48,021,806                                                                                                            |
|                     |                |   |              |          |           |   |                                                                                                                       |
| Net Loss                 | –             |   | (3,106,018)  |          | (34,123)  |   | (3,140,141)                                                                                                           |
|                     |                |   |              |          |           |   |                                                                                                                       |
| Redemptions              | (161,791.299)  |   | (1,472,181)  |          | –        |   | (1,472,181)                                                                                                           |
|                     |                |   |              |          |           |   |                                                                                                                       |
| Partners’ Capital, |                |   |              |          |           |   |                                                                                                                       |
| March 31, 2011           | 4,858,782.648  |   | 42,926,175   |          | 483,309   |   | 43,409,484                                                                                                            |
|                     |                |   |              |          |           |   |                                                                                                                       |
|                     |                |   |              |          |           |   |                                                                                                                       |
|                     |                |   |              |          |           |   |                                                                                                                       |
|                     |                |   |              |          |           |   |                                                                                                                       |
| Partners’ Capital, |                |   |              |          |           |   |                                                                                                                       |
| December 31, 2009        | 6,024,411.202  |   | 59,798,213   |          | 612,188   |   | 60,410,401                                                                                                            |
|                     |                |   |              |          |           |   |                                                                                                                       |
| Net Loss                 | –             |   | (679,739)    |          | (6,968)   |   | (686,707)                                                                                                             |
|                     |                |   |              |          |           |   |                                                                                                                       |
| Redemptions              | (227,238.079)  |   | (2,232,965)       |     | (18,266)  |   | (2,251,231)                                                                                                           |
|                     |                |   |              |          |           |   |                                                                                                                       |
| Partners’ Capital, |                |   |              |          |           |   |                                                                                                                       |
| March 31, 2010           | 5,797,173.123  |   | 56,885,509   |     | 586,954   |   | 57,472,463                                                                                                            |

----

----

----

| 2.   | Financial Highlights |
|----------------|----------------------|

|                                                                                                                                                                        | 2011                                                                                     | 2010                                                                               |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|
|          Per Unit Operating Performance:                                                                                       |                                                                                     |                                                                               |
|          Net asset value, January 1:                                                                                           |    $    9.57                                          |    $  10.03                                               |
|                                                                                                                                                                        |                                                                                     |                                                                               |
|                      Interest Income                               |          –    (3) |          –   (3) |
|                      Expenses                                      |        (0.15)                                         |         (0.17)                                  |
|                      Realized Loss (1)                             |        (0.25)                                         |         (0.09)                                  |
|                      Unrealized Gain (Loss)                        |        (0.24)                                         |          0.14                              |
|                      Net Loss                                      |        (0.64)                                         |         (0.12)                                  |
|                                                                                                                                                                        |                                                                                     |                                                                               |
|          Net asset value, March 31:                                                                                            |   $     8.93                                          |    $     9.91                                   |
|                                                                                                                                                                        |                                                                                     |                                                                               |
|          Ratios to average net assets:                                                                                         |                                                                                     |                                                                               |
|                      Net investment loss (2)                       |        (6.8)%                                         |          (6.8)%                            |
|                      Expenses before  incentive fees (2) |         6.9 %                                    |           6.8 %                       |
|                      Expenses after incentive fees (2)             |         6.9 %                                    |           6.8%                        |
|                      Net loss (2)                                  |     (28.4) %                                                         |          (4.8) %                           |
|          Total return before incentive fees                                                                                    |       (6.7)%                                               |          (1.2)%                            |
|          Total return after incentive fees                                                                                     |       (6.7)%                                               |          (1.2)%                            |
|                                                                                                                                                                        |                                                                                     |                                                                               |

----

----

----

| 1)   | a) One or more “underlyings” and b) one or more “notional amounts” or payment provisions or both; |
|----------------|---------------------------------------------------------------------------------------------------------------------------|

| 2)   | Requires no initial net investment or a smaller initial net investment than would be required for other types of contracts that would be expected to have a similar response relative to changes in market factors; and |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3)   | Terms that require or permit net settlement. |
|----------------|----------------------------------------------|

|          | Net Unrealized Gains/(Losses) on Open Contracts | Longest Maturities    |
|---------------|-------------------------------------------------|-----------------------|
| Date          | Exchange-Traded                                 | Off-Exchange-Traded   | Total | Exchange-Traded | Off-Exchange-Traded |
|          | $                                               | $                     | $ |   |   |
| Mar. 31, 2011 | 219,989                                         |   (285,228) | (65,239) | Jun. 2011 | Jun. 2011 |
| Dec. 31, 2010 |  74,100                                    | 1,044,336             | 1,118,436 | Mar. 2011 | Mar. 2011 |

----

----

----

| Futures and Forward Contracts               | Long UnrealizedGain       | Long UnrealizedLoss |  Short UnrealizedGain |   Short UnrealizedLoss | Net Unrealized    Gain/(Loss) | Average number of contracts outstandingfor the quarter  (absolute quantity) |
|---------------------------------------------|---------------------------|--------------------------|----------------------------|----------------------------------|---------------------------------------------------|---------------------------------------------------------------------------------------|
|                                        | $                         | $                        | $                          | $                                | $                                                 |                                                                                  |
|                                        |                      |                     |                       |                             |                                              |                                                                                  |
| Foreign currency                            |    640,438 | (450,300)                |   80,506         |   (425,291)                 | (154,647)                                         | 7,890                                                                                 |
| Total                                       |    640,438 |  (450,300)          |   80,506         |   (425,291)                 | (154,647)                                         |                                                                                  |
|                                        |                      |                     |                       |                             |                                              |                                                                                  |
| Unrealized currency gain                    |                      |                     |                       |                             |      89,408              |                                                                                  |
| Total net unrealized loss on open contracts |                      |                     |                       |                             |     (65,239)                  |                                                                                  |

----

|                           |                                                                                          | Average number of     |
|--------------------------------|-----------------------------------------------------------------------------------------------|-----------------------|
|                           |                                                                                          | contracts outstanding |
|                           |                                                                                          | for the quarter       |
|                           |                                                                                          | (absolute quantity)   |
| Option Contracts at Fair Value | $                                                                                             |                  |
| Options purchased              |  64,877                                                                                  | 1                     |
| Options written                |                (70,433) | 1                     |

| Futures and Forward Contracts                          | Long UnrealizedGain | Long UnrealizedLoss  |  ShortUnrealizedGain  |   Short UnrealizedLoss | Net Unrealized   Gain | Average number of contractsoutstanding for the year (absolute quantity) |
|--------------------------------------------------------|--------------------------|----------------------|----------------------------|----------------------------------|--------------------------------------|------------------------------------------------------------------------------|
|                                                   | $                        | $                    | $                          | $                                | $                                    |                                                                         |
| Foreign currency                                       | 1,132,624           | (43,007)        |    169,153  |    (248,617)           | 1,010,153                            | 6,867                                                                        |
| Total                                                  |  1,132,624     |  (43,007)  | 169,153                    | (248,617)                        | 1,010,153                            |                                                                         |
|                                                   |                     |                 |                       |                             |                                 |                                                                         |
| Unrealized currency gain                               |                     |                 |                       |                             | 108,283                              |                                                                         |
| Total net unrealized  gain on open contracts |                     |                 |                       |                             |  1,118,436                      |                                                                         |

|                           |                                                                                                                 | Average number of     |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------|-----------------------|
|                           |                                                                                                                 | contracts outstanding |
|                           |                                                                                                                 | for the year          |
|                           |                                                                                                                 | (absolute quantity)   |
| Option Contracts at Fair Value | $                                                                                                                    |                  |
| Options purchased              | 4,459                                                                                                                | 3                     |
| Options written                |                    – | 2                     |

| Type of Instrument       |                                          $ |
|--------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                     |                                                                                                                                                                                                                                               |
| Foreign currency         | (2,366,658)                                                                                                                                                                                                                                        |
| Unrealized currency loss |      (18,875)                                                                                                                                                                                                             |
| Total                    |   (2,385,533)                                                                                                                                                                                                                            |

----

| Trading Results          |                                                  $ |
|--------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                     |                                                                                                                                                                                                                                                                                               |
| Realized                 | (1,208,516)                                                                                                                                                                                                                                                                                        |
| Net change in unrealized |    (1,177,017)                                                                                                                                                                                                                                                                      |
| Total Trading Results    |    (2,385,533)                                                                                                                                                                                                                                                                      |

| Type of Instrument          |                                                      $ |
|-----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                        |                                                                                                                                                                                                                                                                                                                       |
| Foreign  currency | 258,185                                                                                                                                                                                                                                                                                                                    |
| Unrealized currency gain    |   26,721                                                                                                                                                                                                                                                                                                         |
| Total                       |   284,906                                                                                                                                                                                                                                                                                                        |

| Trading Results          |                                                      $ |
|--------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                     |                                                                                                                                                                                                                                                                                                                       |
| Realized                 | (553,181)                                                                                                                                                                                                                                                                                                                  |
| Net change in unrealized |    838,087                                                                                                                                                                                                                                                                                                  |
| Total Trading Results    |     284,906                                                                                                                                                                                                                                                                                            |

----

----

| March 31, 2011                                    | UnadjustedQuoted Prices in Active Markets for Identical Assets(Level 1)                                                                                                                 | Significant Other Observable Inputs(Level 2)                                                                                                                                            | Significant Unobservable Inputs(Level 3) |   | Total                                                                                                                                                    |
|---------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                              | $                                                                                                                                                                                       | $                                                                                                                                                                                       | $                                        |   | $                                                                                                                                                        |
|   Assets                                     |                                                                                                                                                                                    |                                                                                                                                                                                    |                                     |   |                                                                                                                                                     |
|   Futures                                    |     161,173                                                                                                                                                         |                         –             |     n/a                   |   |      161,173                                                                                                                    |
|       Forwards           |                          –       | 559,771                                                                                                                                                                                 | n/a                                      |   |     559,771                                                                                                                          |
|       Options Purchased  |                          –       |                      64,877                                                    | n/a                                      |   |                     64,877                      |
|                                              |                                                                                                                                                                                    |                                                                                                                                                                                    |                                     |   |                                                                                                                                                     |
|   Total Assets                          |          161,173                                                                                                                                |      624,648                                                                                                                                                   | n/a                                      |   |   785,821                                                                                                                                      |
|                                              |                                                                                                                                                                                    |                                                                                                                                                                                    |                                     |   |                                                                                                                                                     |
|       Liabilities             |                                                                                                                                                                                    |                                                                                                                                                                                    |                                     |   |                                                                                                                                                     |
|   Futures                                    |                  30,593                                                        |                          –       |     n/a                   |   |                      30,593      |
|       Forwards           |                        –                   |      844,998                                                                                                                                                   | n/a                                      |   |     844,998                                                                                                                          |
|   Options Written                            |                        –                   |       70,433                                                                                                                                              | n/a                                      |   |     70,433                                                                                                                           |
|                                              |                                                                                                                                                                                    |                                                                                                                                                                                    |                                     |   |                                                                                                                                                     |
|   Total Liabilities                     |                  30,593                                                                                 |       915,431                                                                                                                                             | n/a                                      |   |     946,024                                                                                                                          |
|                                              |                                                                                                                                                                                    |                                                                                                                                                                                    |                                     |   |                                                                                                                                                     |
|      Unrealized currency gain |                                                                                                                                                                                    |                                                                                                                                                                                    |                                     |   |       89,408                                                                                                               |
|                                              |                                                                                                                                                                                    |                                                                                                                                                                                    |                                     |   |                                                                                                                                                     |
|    *Net fair value                      |      130,580                                                                                                                                                   |   (290,783)                                                                                                                                                                   | n/a                                      |   |     (70,795)                                                                                                                         |
|                                              |                                                                                                                                                                                    |                                                                                                                                                                                    |                                     |   |                                                                                                                                                     |

| December 31, 2010                                       | UnadjustedQuoted Prices in Active Markets for Identical Assets(Level 1)                                                                                                     | Significant Other Observable Inputs(Level 2)                                                                                                                                            | Significant Unobservable Inputs(Level 3) |   | Total                                                                                                                                                                                               |
|---------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                    | $                                                                                                                                                                           | $                                                                                                                                                                                       | $                                        |   | $                                                                                                                                                                                                   |
|   Assets                                           |                                                                                                                                                                        |                                                                                                                                                                                    |                                     |   |                                                                                                                                                                                                |
|   Futures                                          |      74,100                                                                                                                                        |                      –                               | n/a                                      |   |        74,100                                                                                                                                                         |
|       Forwards                 |                        –       | 1,227,677                                                                                                                                                                               | n/a                                      |   |     1,227,677                                                                                                                                                                   |
|       Options Purchased        |                        –       |                        4,459                                         | n/a                                      |   |                        4,459                                                     |
|                                                    |                                                                                                                                                                        |                                                                                                                                                                                    |                                     |   |                                                                                                                                                                                                |
|   Total Assets                                |       74,100                                                                                                                                  |   1,232,136                                                                                                                                                                   | n/a                                      |   |   1,306,236                                                                                                                                                                               |
|                                                    |                                                                                                                                                                        |                                                                                                                                                                                    |                                     |   |                                                                                                                                                                                                |
|       Liabilities              |                                                                                                                                                                        |                                                                                                                                                                                    |                                     |   |                                                                                                                                                                                                |
|   Futures                                          |                        –       |                          –       | n/a                                      |   |                            –       |
|       Forwards                 |                        –       |      291,624                                                                                                                                                   | n/a                                      |   |     291,624                                                                                                                                                                     |
|                                                    |                                                                                                                                                                        |                                                                                                                                                                                    |                                     |   |                                                                                                                                                                                                |
|   Total Liabilities                           |                       –             |       291,624                                                                                                                                             | n/a                                      |   |     291,624                                                                                                                                                                     |
|                                                    |                                                                                                                                                                        |                                                                                                                                                                                    |                                     |   |                                                                                                                                                                                                |
|       Unrealized currency gain |                                                                                                                                                                        |                                                                                                                                                                                    |                                     |   |     108,283                                                                                                                                                                     |
|                                                    |                                                                                                                                                                        |                                                                                                                                                                                    |                                     |   |                                                                                                                                                                                                |
|    *Net fair value                            |       74,100                                                                                                                                  |    940,512                                                                                                                                                               | n/a                                      |   |   1,122,895                                                                                                                                                                               |

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|   | 7.  Restricted and Unrestricted Cash |
|--------|------------------------------------------------|

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|   | Item 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
|--------|-------------------------------------------------------------------------------|

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| Primary Market | March 31, 2011 | December 31, 2010 |
|----------------|----------------|-------------------|
| Risk Category  | Value at Risk  | Value at Risk     |
|           |           |              |
| Currency       | (1.28)%        | (1.13)%           |

| March 31, 2011               |    |    |    |
|------------------------------|---------|---------|---------|
| Primary Market Risk Category | High    | Low     | Average |
| Currency                     | (1.59)% | (1.11)% | (1.28)% |

| December 31, 2010            |    |    |    |
|------------------------------|---------|---------|---------|
| Primary Market Risk Category | High    | Low     | Average |
| Currency                     | (1.59)% | (1.11)% | (1.27)% |

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| ·   | 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; |
|--------------------|-----------------------------------------------------------------------------------------------|

| ·   | 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 movement. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Item 1A. | RISK FACTORS |
|----------|--------------|

| Item 6. | EXHIBITS |
|---------|----------|

| 31.01 | Certification of President of Ceres Managed Futures LLC, 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 Ceres Managed Futures LLC, the general partner of the Partnership, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 32.01 | Certification of President of Ceres Managed Futures LLC, 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 Ceres Managed Futures LLC, 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. |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|         | Morgan Stanley Smith Barney Spectrum Currency L.P. |
|--------------|----------------------------------------------------|
|         | (Registrant)                                       |
|         |                                               |   |
|         | By:                                                | Ceres Managed Futures LLC |
|         |                                               | (General Partner) |
|         |                                               |   |
| May 13, 2011 | By:                                                | /s/Jennifer Magro |
|         |                                               | Jennifer Magro |
|         |                                               | Chief Financial Officer |