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 September 30, 2008 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 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

	September 30, 2008

<caption>


PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

				<c>
		Statements of Financial Condition as of September 30, 2008
		(Unaudited) and December 31, 2007	2

		Statements of Operations for the Three and Nine Months
		Ended September 30, 2008 and 2007 (Unaudited)	3

		Statements of Changes in Partners? Capital for the
		Nine Months Ended September 30, 2008 and 2007 (Unaudited)	4

		Statements of Cash Flows for the Nine Months Ended
		September 30, 2008 and 2007 (Unaudited)	5

		Condensed Schedules of Investments as of September 30, 2008
	  (Unaudited) and December 31, 2007	6

		Notes to Financial Statements (Unaudited)	7-16

Item 2.	Management?s Discussion and Analysis of
			Financial Condition and Results of Operations	17-29

Item 3.	Quantitative and Qualitative Disclosures About
			Market Risk	30-40

Item 4.	Controls and Procedures	40-41

Item 4T.	Controls and Procedures	41


PART II. OTHER INFORMATION

Item 1A.Risk Factors 	42

Item 2.	Unregistered Sales of Equity Securities
			and Use of Proceeds.	.42-43

Item 5.	Other Information	43

Item 6.	Exhibits 	43-44
</table>


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

	MORGAN STANLEY SPECTRUM CURRENCY L.P.
	STATEMENTS OF FINANCIAL CONDITION
<caption>

	September 30,	December 31,
	       2008      	              2007
	 $	$
	(Unaudited)
ASSETS

	<c>	<c>
Trading Equity:
	Unrestricted cash	91,330,182	110,971,546
	Restricted  cash	    1,127,685	        2,985,523

	     Total cash	92,457,867	113,957,069

	Net unrealized loss on open contracts (MS&Co.)	    (262,246)	      (1,397,223)

	Options purchased (proceeds paid $313,029
       and $29,116, respectively)	         136,652	            14,874

		Total Trading Equity	92,332,273	112,574,720

Subscriptions receivable 	168,612           	         490,292
Interest receivable (MS&Co.)	          57,304	          228,618

	     Total Assets	    92,558,189       	      113,293,630

LIABILITIES AND PARTNERS? CAPITAL

Liabilities

Redemptions payable	2,032,299	4,968,209
Accrued brokerage fees (MS&Co.)	351,132	436,938
Accrued management fees	152,666	       189,973
Options written (premiums received $37,032
  and $217,974, respectively)	           86,398	          370,766

	     Total Liabilities	       2,622,495	       5,965,886

Partners? Capital

Limited Partners (8,817,099.482 and
   10,795,995.838 Units, respectively)	88,952,782	106,178,308
General Partner (97,427.343 and
   116,872.343 Units, respectively)	          982,912	       1,149,436

	     Total Partners? Capital	     89,935,694	   107,327,744

	     Total Liabilities and Partners? Capital	     92,558,189     	     113,293,630
NET ASSET VALUE PER UNIT	               10.09                       	            9.84

<fn>
The accompanying notes are an integral part
of these financial statements.  </table>
- 2 -


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

                                For the Three Months	                      For the Nine Months
                           Ended September 30,                     Ended September 30,__


                                                  2008   	        2007    	     2008   	    2007
                                                     $	               $		       $	 	 $

	<c>	<c>		<c>	    <c>
INVESTMENT INCOME
	Interest income (MS&Co.)                      	    285,568		   1,215,836	       	    1,075,540              4,077,938

EXPENSES
	Brokerage fees (MS&Co.)	1,096,425	1,551,910	3,484,538		5,042,559
	Management fees	476,707   	       674,745	1,515,017		   2,192,418
	Incentive fees	       74,362	              ?      	     355,472		            ?

		   Total Expenses 	  1,647,494	   2,226,655	  5,355,027		   7,234,977

NET INVESTMENT LOSS 	  (1,361,926)	   (1,010,819)	  (4,279,487)		   (3,157,039)


TRADING RESULTS
Trading profit (loss):
	Realized	1,118,972	(19,065,726)             	6,190,925	 	(15,733,686)
	Net change in unrealized	  (2,578,209)	       130,166	      1,076,268		   (1,039,033)

		   Total Trading Results	  (1,459,237)	  (18,935,560)	   7,267,193		  (16,772,719)

NET INCOME (LOSS)                                           (2,821,163)		  (19,946,379)	   2,987,706	      	  (19,929,758)

NET INCOME (LOSS) ALLOCATION

	Limited Partners	(2,789,588)	(19,731,005)	2,956,606	          (19,718,587)
	General Partner	(31,575) 	(215,374)	31,100	     	       (211,171)


NET INCOME (LOSS) PER UNIT

	Limited Partners                                            	(0.30)	(1.55)   	  0.25    	                  (1.51)
	General Partner  	                                           (0.30)	  (1.55)	  0.25     	             (1.51)


			                                                                  Units     	Units	Units	    	     Units
WEIGHTED AVERAGE NUMBER
	OF UNITS OUTSTANDING                       	9,183,143.160	12,565,607.650		9,816,229.721 	13,309,972.250

<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 Nine Months Ended September 30, 2008 and 2007
(Unaudited)


<caption>

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


	<c>	<c>	<c>	<c>
Partners? Capital,
   December 31, 2006	14,327,328.169	161,303,764	1,745,572	163,049,336

Offering of Units	512,176.177	5,518,465	?  	5,518,465

Net Loss                                                                   ? 	  	(19,718,587)	(211,171)	(19,929,758)

Redemptions	  (2,702,590.970)	   (28,664,121)	    (193,463)	 (28,857,584)

Partners? Capital,
   September 30, 2007	 12,136,913.376	 118,439,521	    1,340,938	  119,780,459



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

Offering of Units	267,587.496	2,742,598	?  	2,742,598

Net Income                                                                   ? 	  	2,956,606	31,100	2,987,706

Redemptions	 (2,265,928.852)	  (22,924,730)	    (197,624)	 (23,122,354)

Partners? Capital,
   September 30, 2008	  8,914,526.825	  88,952,782	       982,912	   89,935,694






<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)


<caption>



	    For the Nine Months Ended September 30,

	      2008     	               2007
	      $	               $


CASH FLOWS FROM OPERATING ACTIVITIES

			<c>	<c>
Net income (loss)  	2,987,706	(19,929,758)
Noncash item included in net income (loss):
       Net change in unrealized	(1,076,268)	1,039,033

(Increase) decrease in operating assets:
       Restricted cash	1,857,838	?
       Proceeds paid for options purchased	(283,913)	?
       Interest receivable (MS&Co.)	171,314	249,315

Decrease in operating liabilities:
      Accrued brokerage fees (MS&Co.)	(85,806)	(172,972)
      Accrued management fees	(37,307)	          (75,206)
      Premium received for options written	                                        (180,942)                           ?

Net cash provided by (used for) operating activities	    3,352,622  	   (18,889,588)


CASH FLOWS FROM FINANCING ACTIVITIES

Cash received from offering of Units	3,064,278	6,001,307
Cash paid for redemptions of Units	  (26,058,264)	   (29,902,582)

Net cash used for financing activities	    (22,993,986)	    (23,901,275)

Net decrease in unrestricted cash	(19,641,364)	(42,790,863)

Unrestricted cash at beginning of period	   110,971,546	   162,737,117

Unrestricted cash at end of period	    91,330,182	   119,946,254


<fn>


The accompanying notes are an integral part
of these financial statements.
</table>
<page> <table> MORGAN STANLEY SPECTRUM CURRENCY L.P.
CONDENSED SCHEDULES OF INVESTMENTS
September 30, 2008 (Unaudited) and December 31, 2007

					<caption>





Futures and Forward Contracts
     Long
Unrealized
         Loss

Percentage of
  Net Assets
      Short
  Unrealized
 Gain/(Loss)

Percentage of
   Net Assets
      Net
 Unrealized
 Gain/(Loss)

  $
%
$
%
$

September 30, 2008, Partnership Net Assets: $89,935,694





<c>
<c>
<c>
<c>
<c>
Foreign currency
  (357,217)
        (0.40)
     21,909
        0.02
  (335,308)






     Grand Total:
  (357,217)
        (0.40)
     21,909
        0.02
  (335,308)

     Unrealized Currency Gain





     73,062

     Total Net Unrealized Loss


 Fair Value
     $
Percentage of
   Net Assets
          %



Options purchased on Futures Contracts
      ?
          ?



Options purchased on Forward Contracts
  136,652
   0.15



Options written on Futures Contracts
      ?
          ?



Options written on Forward Contracts
         (86,398)
         (0.10)





 December 31, 2007, Partnership Net Assets: $107,327,744



 (262,246)







Foreign currency
(1,197,591)
        (1.12)
   (216,587)
       (0.20)
(1,414,178)






     Grand Total:
(1,197,591)
        (1.12)
   (216,587)
       (0.20)
(1,414,178)

     Unrealized Currency Gain





     16,955

     Total Net Unrealized Loss


 Fair Value
     $
Percentage of
   Net Assets
          %



Options purchased on Futures Contracts
      ?
          ?



Options purchased on Forward Contracts
   14,874
   0.01



Options written on Futures Contracts
      ?
          ?



Options written on Forward Contracts
       (370,766)
         (0.35)







 (1,397,223)

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

September 30, 2008

(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, 2007,
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?).  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 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 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/proceeds paid from writing/purchasing options
are recorded as liabilities/assets on the Statements of Financial
Condition and are subsequently adjusted to current values.  The
difference between the current value of the options and the
premiums received/proceeds 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 John W.
Henry & Company, Inc., Sunrise Capital Partners, LLC, C-View
International Limited, DKR Fusion Management L.P., and FX Concepts
Trading Advisor, Inc. (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.  MS&Co. pays the Partnership at each month end
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.  The
2004 through 2007 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 market value of
these contracts, including interest rate volatility.

The market value of exchange-traded contracts is based on the
settlement price quoted by the exchange on the day with respect
to which market 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
market value of off-exchange-traded contracts is based on the fair
market value quoted by the counterparty.

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


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 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.

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:



<page> <table>  MORGAN STANLEY SPECTRUM CURRENCY L.P.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<caption>
                        Unrealized Losses
                        on Open Contracts                Longest Maturities

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

	            <c>	       <c>	   <c>	     <c>	   <c>
Sep. 30, 2008	   - 	        (262,246)    (262,246)	-	Dec. 2008
Dec. 31, 2007	   - 	      (1,397,223)  (1,397,223)	-	Mar. 2008
</table>
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-
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

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


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-
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

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



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.



5.  New Accounting Developments
In September 2006, the Financial Accounting Standards Board
(?FASB?) issued Statement of Financial Accounting Standards No.
157 (?SFAS 157?), ?Fair Value Measurements?.  SFAS 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 - quoted market prices in active markets for identical
assets and liabilities; Level 2 - inputs other than quoted market
prices that 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).




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

Demeter evaluated the impact of adopting SFAS 157 on the
Partnership?s financial statements.  The Partnership adopted SFAS
157 as of January 1, 2008.  Based on its analysis, the effect of
applying SFAS 157 to the investments included in the financial
statements does not have a material impact on the Partnership?s
financial statements.

The following table summarizes the valuation of the Partnership?s
investments by the above SFAS 157 fair value hierarchy as of
September 30, 2008:  <caption>



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




      Total


 <c>
<c>
 <c>

<c>
Unrealized loss on open contracts
      n/a
$ (262,246)
    n/a

                 $  (262,246)
Options purchased
      n/a
$  136,652
    n/a

  $   136,652






Liabilities





Options written
      n/a
$    86,398
    n/a

$     86,398
</table>





In March 2008, the FASB issued SFAS No. 161, Disclosures about
Derivative Instruments and Hedging Activities ("SFAS 161").  SFAS
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 161 is effective for

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

financial statements issued for fiscal years beginning after
November 15, 2008, and interim periods within those fiscal years.
The Partnership is currently evaluating the impact that the
adoption of SFAS No. 161 will have on its financial statement
disclosures.

6.  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.


7.  Reclassifications
Certain prior year amounts relating to options on the Condensed
Schedules of Investments for December 31, 2007 were reclassified to
conform to 2008 presentation.  Such reclassifications have no
impact on the Partnership?s reported net income (loss).

<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, exchanges, and
sales 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
<page> possible to estimate the amount, and therefore the impact,
of future inflows and outflows of Units.

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 and nine month periods ended September
30, 2008 and 2007, 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
<page> in the context of the Trading Advisors? trading activities
on behalf of 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 16 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
cost and market value is recorded on the Statements of Operations
as ?Net change in unrealized trading gain (loss)? for open
(unrealized) contracts, and recorded as ?Realized trading gain
(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 Three and Nine Months Ended September 30, 2008
The Partnership recorded total trading results including interest
income totaling $(1,173,669) and expenses totaling $1,647,494,
resulting in a net loss of $2,821,163 for the three months ended
September 30, 2008.  The Partnership?s net asset value per Unit
decreased from $10.39 at June 30, 2008, to $10.09 at September 30,
2008.

The most significant trading losses of approximately 1.0%, 0.9%,
0.3%, 0.3%, and 0.3%, respectively, were incurred primarily during
August from long positions in the euro, Swiss franc, Australian
dollar, South African rand, and Polish zloty versus the U.S.
dollar as the value of the U.S. dollar strengthened after U.S.
consumer confidence increased in August for a second consecutive
month and due to a higher-than-previously-estimated increase in
Gross Domestic Product during the second quarter of 2008.
Meanwhile, the value of the euro decreased sharply relative to the
U.S. dollar after the European Central Bank left its benchmark
interest rate unchanged during August. Smaller losses were
recorded during September from newly established short positions
in the euro versus the U.S. dollar as the value of the euro
reversed higher during the middle of the month following news that
the European Central Bank had injected additional liquidity into
<page> money markets in an attempt to alleviate credit turmoil
concerns. Meanwhile, both short and long positions in the Swiss
franc versus the U.S. dollar incurred losses during September as
the value of the Swiss franc moved without consistent direction
amid conflicting economic data out of Switzerland. A portion of
the Partnership?s losses in the third quarter was offset by gains
of approximately 0.7%, 0.6%, 0.3%, and 0.3%, respectively,
experienced throughout the quarter from short positions in the
Taiwan dollar, New Zealand dollar, Singapore dollar, and Korean
won versus the U.S. dollar as the value of the U.S. dollar
strengthened relative to these currencies following the
aforementioned news of better-than-expected U.S. economic data, as
well as in response to a worldwide ?flight-to-quality? due to
fears of an intense credit crunch and subsequent concerns of a
global recession. Additional gains of approximately 0.6% were
experienced during July and August from short positions in the
Japanese yen versus the U.S. dollar as the value of the Japanese
yen fell relative to the U.S. dollar after Japan's government
downgraded its assessment of the economy to "worsening,"
indicating that the six-year expansion of Japan's economy might
have ended.

The Partnership recorded total trading results including interest
income totaling $8,342,733 and expenses totaling $5,355,027,
resulting in net income of $2,987,706 for the nine months ended
September 30, 2008.  The Partnership?s net asset value per Unit
<page> increased from $9.84 at December 31, 2007, to $10.09 at
September 30, 2008.

The most significant trading gains of approximately 2.5%, 1.6%,
1.0%, 0.8%, and 0.8%, respectively, were experienced primarily
during January, February, March, and June, from long positions in
the euro, Australian dollar, Chilean peso, Taiwan dollar, and
Mexican peso versus the U.S. dollar as the value of the U.S.
dollar weakened against most of its major rivals after U.S.
government reports showed a rise in unemployment, weaker-than-
expected U.S. retail sales, and U.S. consumer confidence at a 16-
year low.  The value of the U.S. dollar continued to fall after
the U.S. Federal Reserve held interest rates steady at 2.0%
despite rising inflation. Further gains were experienced
throughout the third quarter from short positions in the Taiwan
dollar and Mexican peso versus the U.S. dollar as the value of
the U.S. dollar strengthened relative to these currencies
following the aforementioned news of better-than-expected U.S.
economic data, as well as in response to a worldwide ?flight-to-
quality? due to fears of an intense credit crunch and subsequent
concerns of a global recession.  Additional gains of
approximately 1.6% were achieved primarily during January, March,
April, May, August, and September, from short positions in the
Korean won versus the U.S. dollar as the value of the Korean won
fell amid concerns of a rising Current-Account deficit out of
Korea.  A portion of the Partnership?s gains in the first nine
<page> months of the year was offset by losses of approximately
0.5% experienced from short positions in the British pound versus
the U.S. dollar as the value of the British pound strengthened
against the U.S. dollar during January, February, March, and
April after retail sales in the United Kingdom unexpectedly
increased and minutes from the Bank of England indicated
significant concerns about rising inflation in the United
Kingdom. Meanwhile, losses of approximately 0.4% were recorded
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 from newly
established long positions in the Japanese yen versus the U.S.
dollar during February and April as the value of the Japanese yen
reversed lower following comments from the Bank of Japan that the
Japanese economy might be slowing.  Losses of approximately 0.3%
were incurred primarily during April from short positions in the
South African rand versus the U.S. dollar as the value of the
South African rand increased amid stronger-than-expected economic
data out of South Africa. Newly established long positions in the
South African rand versus the U.S. dollar experienced further
losses during August as the value of the U.S. dollar reversed
higher relative to the South African rand following the
aforementioned news of better-than-expected U.S. economic data
and amid a worldwide ?flight-to-quality?. Lastly, losses of
<page> approximately 0.2% and 0.2%, respectively, were recorded
from both long and short positions in the Indian rupee and
Hungarian forint versus the U.S. dollar as the value of these
currencies moved without consistent direction throughout a
majority of the first nine months of 2008.

For the Three and Nine Months Ended September 30, 2007
The Partnership recorded total trading results including interest
income totaling $(17,719,724) and expenses totaling $2,226,655,
resulting in a net loss of $19,946,379 for the three months ended
September 30, 2007.  The Partnership?s net asset value per Unit
decreased from $11.42 at June 30, 2007, to $9.87 at September 30,
2007.

The most significant trading losses of approximately 5.0% were
experienced during July and August from short positions in the
Japanese yen versus the U.S. dollar as the value of the Japanese
yen corrected higher against most of its major rivals when
traders reduced ?carry-trade? positions.  Also pushing the value
of the Japanese yen higher were expectations that a Japanese
Ministry of Finance report would show Japan?s trade surplus had
widened in June.  Additional losses of approximately 2.0% were
recorded during July and August from both short and long
positions in the South African rand versus the U.S. dollar as the
value of the South African rand moved without consistent
direction throughout a majority of the quarter.  Further losses
<page> of approximately 1.7%, 1.4%, and 0.7%, respectively, were
incurred primarily during August from long positions in the New
Zealand dollar, Australian dollar, and British pound versus the
U.S. dollar as the value of the U.S. dollar reversed higher
against most of its major rivals as extreme volatility in the
global equity markets and widening credit losses tied to U.S.
sub-prime loans resulted in substantially stronger demand for
U.S. dollar-denominated government bonds.  Elsewhere, losses of
approximately 1.3% were recorded throughout the quarter from both
short and long positions in the Swiss franc versus the U.S.
dollar as the value of the Swiss franc moved inconsistently due
to investors? uncertainty regarding the future interest rate
policy of the Swiss National Bank.  A portion of the
Partnership?s losses in the third quarter was offset by gains of
approximately 1.8%, 0.8%, and 0.7%, respectively, experienced
primarily during September from long positions in the euro,
Norwegian krone, and Swedish krona versus the U.S. dollar as the
value of the U.S. dollar declined relative to most of its major
rivals leading up to and after the U.S. Federal Reserve?s
decision to cut interest rates at its September 18, 2007 meeting.
 In addition, the value of the U.S. dollar was pulled lower amid
speculation that the U.S. Federal Reserve would continue to
reduce interest rates in the near term, while the value of the
Norwegian krone increased in tandem with rising energy prices.

<page> The Partnership recorded total trading results including
interest income totaling $(12,694,781) and expenses totaling
$7,234,977, resulting in a net loss of $19,929,758 for the nine
months ended September 30, 2007.  The Partnership?s net asset
value per Unit decreased from $11.38 at December 31, 2006, to
$9.87 at September 30, 2007.

The most significant trading losses of approximately 7.3% were
experienced throughout a majority of the year from both short and
long positions in the South African rand versus the U.S. dollar
as the value of the rand moved in a trendless pattern due to
investor uncertainty regarding the status of the South African
economy.  Meanwhile, short positions in the Swiss franc versus
the U.S. dollar incurred losses of approximately 1.8% primarily
during February, March, July, and August as the value of the
Swiss franc reversed higher against the U.S. dollar due to
accelerating fears of inflation in Switzerland.  Losses of
approximately 1.7% were recorded from short positions in the
Mexican peso versus the U.S. dollar as the value of the Mexican
peso moved higher during March and April on increased speculation
of an interest rate hike by the Bank of Mexico.  Further losses
were incurred during June, July, and August from long positions
in the Mexican peso versus the U.S. dollar as the value of the
Mexican peso drifted lower leading up to and after the Bank of
Mexico?s decision to hold interest rates steady at 7.25%.
Additional losses of approximately 1.4% were experienced during
<page> February, March, and May from long positions in the
British pound versus the U.S. dollar as the value of the pound
weakened after a report showed U.K. services growth had slowed
and amid political uncertainty in the United Kingdom after
British Prime Minister Tony Blair announced he would step down in
June 2007.  During August, long positions in the British pound
versus the U.S. dollar recorded further losses as the value of
the U.S. dollar reversed higher against the British pound amid
stronger demand for U.S. dollar-denominated government bonds
resulting from extreme volatility in the global equity markets
and widening credit losses tied to U.S. sub-prime loans.  Losses
continued during September from newly established short positions
in the British pound versus the U.S. dollar as the value of the
U.S. dollar moved lower relative to the British pound leading up
to and after the U.S. Federal Reserve?s decision to cut interest
rates at its September 18, 2007 meeting.  Smaller losses of
approximately 1.0% and 0.5%, respectively, were recorded
primarily during August from long positions in the New Zealand
dollar and Indian rupee versus the U.S. dollar as the value of
the U.S. dollar reversed higher against most of its major rivals
due to the aforementioned reasons regarding U.S. sub-prime
mortgage losses.   A portion of the Partnership?s losses in the
first nine months of the year was offset by gains of
approximately 2.6% recorded throughout a majority of the year
from long positions in the Brazilian real versus the U.S. dollar
as the value of the Brazilian real trended higher as consistently
<page> strong economic data out of Brazil led to investor
sentiment that the Central Bank of Brazil would continue raising
interest rates. Elsewhere, gains of approximately 2.2% were
experienced primarily during March and April from long positions
in the euro versus the U.S. dollar as the value of the euro moved
higher against the U.S. dollar amid indications from European
Central Bank member Klaus Liebscher that interest rates in the
Euro-Zone would increase further.  Gains continued during
September from long positions in the euro versus the U.S. dollar
as the value of the U.S. dollar was pulled lower amid speculation
that the U.S. Federal Reserve would continue to reduce interest
rates in the near term.  Smaller gains of approximately 0.7% were
recorded during April, June, July, and September from long
positions in the Swedish krona versus the U.S. dollar as the
value of the Swedish krona moved higher amid consistently strong
economic data out of Sweden.  Finally, gains of approximately
0.4% resulted from short positions in the Japanese yen versus the
U.S. dollar during January, April, May, and June as the value of
the yen weakened relative to the U.S. dollar in a continuation of
the carry-trade and increased speculation that the Bank of Japan
would not raise interest rates.





<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 September 30, 2008, and 2007.
At September 30, 2008, and 2007, the Partnership?s total
capitalization was approximately $90 million and $120 million,
respectively.


Primary Market	     September 30, 2008	  September 30, 2007
Risk Category		   Value at Risk		Value at Risk
Currency				  (0.73)%			    (3.21)%

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
<page> speculative trading of futures, forwards, and options on
such 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 October 1, 2007, through September 30, 2008.

Primary Market Risk Category        High      Low      Average
Currency 						(1.18)%	(0.73)%	 (0.95)%

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;

<page>
*	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 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 September 30, 2008 and 2007,
and for the four quarter-end reporting periods from October 1,
2007, through September 30, 2008.  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
<page> day will not exceed the VaR amounts indicated above or
that such losses will not occur more than once in 100 trading
days.

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 September 30, 2008,
such amount was equal to approximately 100% 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
<page> 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
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 September 30, 2008.  It may be anticipated,
however, that market exposure will vary materially over time.

Currency.  The Partnership?s currency market exposure at
September 30, 2008, was to exchange rate fluctuations, primarily
<page> fluctuations which disrupt the historical pricing
relationships between different currencies and currency pairs.
Interest rate changes as well as political and general economic
conditions, influence these fluctuations.  The Partnership trades
a large number of currencies, including cross-rates ? i.e.,
positions between two currencies other than the U.S. dollar.  At
September 30, 2008, the Partnership?s major exposures were to the
euro, British pound, Swiss franc, Canadian dollar, Australian
dollar, Japanese yen, New Zealand dollar, Norwegian krone,
Hungarian forint, Polish zloty, Swedish krona, Czech koruna, and
Mexican peso 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 September 30, 2008:

Foreign Currency Balances.  The Partnership?s primary
foreign currency balances at September 30, 2008, were in
Swiss francs, British pounds, Polish zloty, Mexican pesos,
Israeli shekels, Turkish lira, Australian dollars, South
African rand, Slovakian koruna, Canadian dollars, euros,
<page> Czech koruna, Norwegian kroner, Hong Kong dollars,
Japanese yen, Singapore dollars, Swedish kronor, New Zealand
dollars, and Hungarian forint. The Partnership controls the
non-trading risk of foreign 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
<page> 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.

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> <table> 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, 2007 and the Partnership?s Reports on Form
10-Q for the quarters ended March 31, 2008 and June 30, 2008.
 <caption>
Item 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF
	    PROCEEDS

	<c>		<c>		<c>
					 SEC
Registration Statement on Form S-1  Units Registered   Effective Date        File Number

Initial Registration            12,000,000.000		 March 6, 2000	333-90485
Additional Registration          1,000,000.000	 	April 30, 2002	333-84654
Additional Registration         14,000,000.000 	   April 28, 2003     333-104004
Additional Registration         25,000,000.000	    April 28, 2004	333-113398
 Total Units Registered         52,000,000.000

Units sold through 9/30/08	      28,018,304.492
Units unsold through 9/30/08    23,981,695.508

</table>
The managing underwriter for the Partnership is MS&Co.

Units are continuously sold at monthly closings at a purchase price
equal to 100% of the net asset value per Unit as of the close of
business on the last day of each month.

The aggregate price of the Units sold through September 30, 2008,
was $363,152,620.


<page> Since no expenses are chargeable against proceeds, 100% of
the proceeds of the offering have been applied to the working
capital of the Partnership for use in accordance with the ?Use of
Proceeds? section of the prospectus and the supplement included as
part of the above referenced Registration Statements.

Item 5.  OTHER INFORMATION
After the month end close for November 30, 2008, Demeter will no
longer offer Units via subscriptions or exchanges into the
Partnership.  If there are not sufficient Units of the Partnership
available for sale through November 30, 2008, to satisfy all
subscription and exchange requests, subscription and exchange
requests for the Partnership will be handled in the order in which
they are received, with Demeter reserving the right to handle
special situations in its sole discretion.

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.

<page>
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 Corporation
                              (General Partner)

November 13, 2008       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.