|   | 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.) |
|                                            |                                                                                                            |       |                                |
|    Demeter Management 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 September 30, 2010 and December 31, 2009                       | 2                |
|     |                                                                                                   |             |
|     | Statements of Operations for the Three and Nine Months Ended September 30, 2010 and 2009               | 3                |
|     |                                                                                                   |             |
|     | Statements of Changes in Partners’ Capital for the Nine Months Ended September 30, 2010 and 2009 | 4                |
|     |                                                                                                   |             |
|     | Condensed Schedules of Investments as of September 30, 2010 and December 31, 2009                      | 5                |
|     |                                                                                                   |             |
|     | Notes to Financial Statements                                                                          |   6-22 |
|     |                                                                                                   |             |
| Item 2.  | Management’s Discussion and Analysis of Financial Condition and Results of Operations            | 23-33            |
|     |                                                                                                   |             |
| Item 3.  | Quantitative and Qualitative Disclosures About Market Risk                                             | 33-41            |
|     |                                                                                                   |             |
| Item 4.  | Controls and Procedures                                                                                | 41-42            |
|     |                                                                                                   |             |
|     | PART II. OTHER INFORMATION                                                                             |             |
|     |                                                                                                   |             |
| Item 1A. | Risk Factors                                                                                           | 43               |
|     |                                                                                                   |             |
| Item 6.  | Exhibits                                                                                               | 43               |

----

|                                                                   | September 30, |   | December 31, |
|------------------------------------------------------------------------|---------------|--------|--------------|
|                                                                   | 2010          |   | 2009         |
| ASSETS                                                                 | $             |   | $            |
|                                                                   |          |   |         |
| Trading Equity:                                                        |          |   |         |
| Unrestricted cash                                                      | 50,439,658    |   | 61,087,188   |
| Restricted cash                                                        | 362,746       |   | 620,523      |
|                                                                   |          |   |         |
| Total cash                                                             | 50,802,404    |   | 61,707,711   |
|                                                                   |          |   |         |
| Net unrealized gain (loss) on open contracts (MS&Co.)              | 391,855       |   | (462,626)    |
|                                                                   |          |   |         |
| Options purchased (premiums paid $527,804 and $1,442, respectively)    | 645,887       |   | 121          |
|                                                                   |          |   |         |
| Total Trading Equity                                                   | 51,840,146    |   | 61,245,206   |
|                                                                   |          |   |         |
| Interest receivable (MSSB)                                             | 3,692         |   | 853          |
|                                                                   |          |   |         |
| Total Assets                                                           | 51,843,838    |   | 61,246,059   |
|                                                                   |          |   |         |
| LIABILITIES AND PARTNERS’ CAPITAL                                |          |   |         |
|                                                                   |          |   |         |
| Liabilities                                                            |          |   |         |
|                                                                   |          |   |         |
| Redemptions payable                                                    | 641,352       |   | 491,924      |
| Options written (premiums received $333,521 and $0, respectively)      | 410,913       |   | —      |
| Accrued brokerage fees (MS&Co.)                                    | 193,029       |   | 239,572      |
| Accrued management fees                                                | 83,926        |   | 104,162      |
|                                                                   |          |   |         |
| Total Liabilities                                                      | 1,329,220     |   | 835,658      |
|                                                                   |          |   |         |
| Partners’ Capital                                                |          |   |         |
|                                                                   |          |   |         |
| Limited Partners (5,259,516.548 and 5,963,360.859 Units, respectively) | 50,000,343    |   | 59,798,213   |
| General Partner (54,096.343 and 61,050.343 Units, respectively)        | 514,275       |   | 612,188      |
|                                                                   |          |   |         |
| Total Partners’ Capital                                          | 50,514,618    |   | 60,410,401   |
|                                                                   |          |   |         |
| Total Liabilities and Partners’ Capital                          | 51,843,838    |   | 61,246,059   |
|                                                                   |          |   |         |
| NET ASSET VALUE PER UNIT                                               | 9.51          |   | 10.03        |

----

|                        |                                               |   |                                                     |
|-----------------------------|----------------------------------------------------|--------|----------------------------------------------------------|
|                        | For the Three MonthsEnded September  30, |   | For the Nine Months   Ended September 30, |
|                        |                                               |   |                                                     |   |   |   |   |
|                        | 2010                                               |   | 2009                                                     |   | 2010 |   | 2009 |
|                        | $                                                  |   | $                                                        |   | $ |   | $ |
| INVESTMENT INCOME           |                                               |   |                                                     |   |   |   |   |
| Interest income (MSSB)      | 14,696                                             |   | 16,141                                                   |   | 36,143 |   | 54,701 |
|                        |                                               |   |                                                     |   |   |   |   |
| EXPENSES                    |                                               |   |                                                     |   |   |   |   |
| Brokerage fees (MS&Co.) | 591,110                                            |   | 766,518                                                  |   | 1,916,481 |   | 2,563,333 |
| Management fees             | 257,004                                            |   | 333,269                                                  |   | 833,252 |   | 1,114,493 |
|                        |                                               |   |                                                     |   |   |   |   |
| Total Expenses              | 848,114                                            |   | 1,099,787                                                |   | 2,749,733 |   | 3,677,826 |
|                        |                                               |   |                                                     |   |   |   |   |
| NET INVESTMENT LOSS         | (833,418)                                          |   | (1,083,646)                                              |   | (2,713,590) |   | (3,623,125) |
|                        |                                               |   |                                                     |   |   |   |   |
| TRADING RESULTS             |                                               |   |                                                     |   |   |   |   |
| Trading profit (loss):      |                                               |   |                                                     |   |   |   |   |
| Realized                    | (403,574)                                          |   | (2,000,792)                                              |   | (1,168,029) |   | (3,320,751) |
| Net change in unrealized    | 887,078                                            |   | 595,155                                                  |   | 896,493 |   | 1,160,351 |
|                        |                                               |   |                                                     |   |   |   |   |
| Total Trading Results       | 483,504                                            |   | (1,405,637)                                              |   | (271,536) |   | (2,160,400) |
|                        |                                               |   |                                                     |   |   |   |   |
| NET LOSS                    | (349,914)                                          |   | (2,489,283)                                              |   | (2,985,126) |   | (5,783,525) |
|                        |                                               |   |                                                     |   |   |   |   |
| NET LOSS ALLOCATION         |                                               |   |                                                     |   |   |   |   |
|                        |                                               |   |                                                     |   |   |   |   |
| Limited Partners            | (346,385)                                          |   | (2,464,021)                                              |   | (2,955,028) |   | (5,725,131) |
| General Partner             | (3,529)                                            |   | (25,262)                                                 |   | (30,098) |   | (58,394) |
|                        |                                               |   |                                                     |   |   |   |   |
| NET LOSS PER UNIT *         |                                               |   |                                                     |   |   |   |   |
|                        |                                               |   |                                                     |   |   |   |   |
| Limited Partners            | (0.06)                                             |   | (0.39)                                                   |   | (0.52) |   | (0.85) |
| General Partner             | (0.06)                                             |   | (0.39)                                                   |   | (0.52) |   | (0.85) |
|                        |                                               |   |                                                     |   |   |   |   |
|                        | Units                                              |   | Units                                                    |   | Units |   | Units |
| WEIGHTED AVERAGE NUMBER     |                                               |   |                                                     |   |   |   |   |
| OF UNITS OUTSTANDING        | 5,451,080.574                                      |   | 6,334,775.845                                            |   | 5,695,075.133 |   | 6,835,176.096 |
|                        |                                               |   |                                                     |   |   |   |   |

----

|                     | Units of        |   |         |   |      |   |         |
|--------------------------|-----------------|--------|--------------|--------|-----------|--------|--------------|
|                     | Partnership     |   | Limited      |   | General   |   |         |
|                     | Interest        |   | Partners     |   | Partner   |   | Total        |
|                     |            |   | $            |   | $         |   | $            |
| Partners’ Capital, |            |   |         |   |      |   |         |
| December 31, 2009        | 6,024,411.202   |   | 59,798,213   |   | 612,188   |   | 60,410,401   |
|                     |            |   |         |   |      |   |         |
| Net Loss                 | –         |   | (2,955,028)  |   | (30,098)  |   | (2,985,126)  |
|                     |            |   |         |   |      |   |         |
| Redemptions              | (710,798.311)   |   | (6,842,842)  |   | (67,815)  |   | (6,910,657)  |
|                     |            |   |         |   |      |   |         |
| Partners’ Capital, |            |   |         |   |      |   |         |
| September 30, 2010       | 5,313,612.891   |   | 50,000,343   |   | 514,275   |   | 50,514,618   |
|                     |            |   |         |   |      |   |         |
|                     |            |   |         |   |      |   |         |
|                     |            |   |         |   |      |   |         |
|                     |            |   |         |   |      |   |         |
| Partners’ Capital, |            |   |         |   |      |   |         |
| December 31, 2008        | 7,923,153.973   |   | 87,533,608   |   | 889,530   |   | 88,423,138   |
|                     |            |   |         |   |      |   |         |
| Net Loss                 | –         |   | (5,725,131)  |   | (58,394)  |   | (5,783,525)  |
|                     |            |   |         |   |      |   |         |
| Redemptions              | (1,726,554.511) |   | (18,380,286) |   | (187,248) |   | (18,567,534) |
|                     |            |   |         |   |      |   |         |
| Partners’ Capital, |            |   |         |   |      |   |         |
| September 30, 2009       | 6,196,599.462   |   | 63,428,191   |   | 643,888   |   | 64,072,079   |

----

| Futures and Forward Contracts                                       | Long UnrealizedGain                           | Percentage ofNet Assets | Short  UnrealizedGain                                                                                                                                                                                                                      | Percentage ofNet Assets   |      Net Unrealized     Gain                                 |
|---------------------------------------------------------------------|-----------------------------------------------|-------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------|----------------------------------------------------------------------------------------------------------------|
|                                                                | $                                             | %                       | $                                                                                                                                                                                                                                                    | %                         |      $                                                                                |
| September 30, 2010 Partnership Partners’ Capital: $50,514,618 |                                          |                    |                                                                                                                                                                                                                                                 |                      |                                                                                                           |
|                                                                |                                          |                    |                                                                                                                                                                                                                                                 |                      |                                                                                                           |
| Foreign currency                                                    |       273,747   |   0.54        |                          34,446                                                                                         |   0.07     |    308,193                                                                                      |
|                                                                |                                          |                    |                                                                                                                                                                                                                                                 |                      |                                                                                                           |
| Grand Total:                                                        |    273,747                     |   0.54        |     34,446                                                                                                                                                                                                                       | 0.07                      |    308,193                                                                                      |
|                                                                |                                          |                    |                                                                                                                                                                                                                                                 |                      |                                                                                                           |
| Unrealized Currency Gain                                            |                                          |                    |                                                                                                                                                                                                                                                 |  0.17                |          83,662                                                        |
|                                                                |                                          |                    |                                                                                                                                                                                                                                                 |                      |                                                                                                           |
| Total Net Unrealized Gain on Open Contracts                         |                                          |                    |                                                                                                                                                                                                                                                 |                      |      391,855                                                                          |
|                                                                |                                          |                    |                                                                                                                                                                                                                                                 |                      |                                                                                                           |
| Option Contracts                                                    | Fair Value                                    | Percentage ofNet Assets |                                                                                                                                                                                                                                                 |                      |                                                                                                           |
|                                                                |  $                                       | %                       |                                                                                                                                                                                                                                                 |                      |                                                                                                           |
| Options purchased on Futures Contracts                              | –                                       | –                 |                                                                                                                                                                                                                                                 |                      |                                                                                                           |
| Options purchased on Forward Contracts                              | 645,887                                       | 1.28                    |                                                                                                                                                                                                                                                 |                      |                                                                                                           |
| Options written on Futures Contracts                                | –                                       | –                 |                                                                                                                                                                                                                                                 |                      |                                                                                                           |
| Options written on Forward Contracts                                | (410,913)                                     | (0.81)                  |                                                                                                                                                                                                                                                 |                      |                                                                                                           |
|                                                                |                                          |                    |                                                                                                                                                                                                                                                 |                      |                                                                                                           |
|                                                                |                                          |                    |                                                                                                                                                                                                                                                 |                      |                                                                                                           |
| Futures and Forward Contracts                                       | Long UnrealizedLoss                           | Percentage ofNet Assets |              Short             Unrealized              Loss | Percentage ofNet Assets   |       Net Unrealized         Gain/(Loss) |
|                                                                | $                                             | %                       |                  $                                                                                                                                                   | %                         | $                                                                                                              |
| December 31, 2009 Partnership Partners’ Capital: $60,410,401  |                                          |                    |                                                                                                                                                                                                                                                 |                      |                                                                                                           |
|                                                                |                                          |                    |                                                                                                                                                                                                                                                 |                      |                                                                                                           |
| Foreign currency                                                    |       (349,025) |   (0.58)      |                        (191,918)                                                                                                  |   (0.32)   |       (540,943)                                                                       |
|                                                                |                                          |                    |                                                                                                                                                                                                                                                 |                      |                                                                                                           |
|      Grand Total:                          |   (349,025)                         |   (0.58)      |    (191,918)                                                                                                                                                                                                                          | (0.32)                    |        (540,943)                                                                 |
|                                                                |                                          |                    |                                                                                                                                                                                                                                                 |                      |                                                                                                           |
|      Unrealized Currency Gain              |                                          |                    |                                                                                                                                                                                                                                                 |  0.13                |                78,317                    |
|                                                                |                                          |                    |                                                                                                                                                                                                                                                 |                      |                                                                                                           |
| Total Net Unrealized Loss on Open Contracts                         |                                          |                    |                                                                                                                                                                                                                                                 |                      |        (462,626)                                                                 |
| Option Contracts                                                    | Fair Value                                    | Percentage ofNet Assets |                                                                                                                                                                                                                                                 |                      |                                                                                                           |
|                                                                |  $                                       | %                       |                                                                                                                                                                                                                                                 |                      |                                                                                                           |
| Options purchased on Futures Contracts                              | –                                       | –                 |                                                                                                                                                                                                                                                 |                      |                                                                                                           |
| Options purchased on Forward Contracts                              | 121                                           | –                 |                                                                                                                                                                                                                                                 |                      |                                                                                                           |
| Options written on Futures Contracts                                | –                                       | –                 |                                                                                                                                                                                                                                                 |                      |                                                                                                           |
| Options written on Forward Contracts                                | –                                       | –                 |                                                                                                                                                                                                                                                 |                      |                                                                                                           |

----

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| 1)   | a) One or more underlyings and b) 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 |
|          | $                                               | $                   | $ |   |   |
| Sep. 30, 2010 | –                                         | 391,855             | 391,855 | – | Dec. 2010 |
| Dec. 31, 2009 | –                                         | (462,626)           | (462,626) | – | Mar. 2010 |

----

----

----

| Futures and Forward Contracts               | Long UnrealizedGain         | Long UnrealizedLoss     |  Short UnrealizedGain                                                                              |   Short UnrealizedLoss | Net   Unrealized Gain  | Average number of contracts outstandingfor nine months (absolute quantity) |
|---------------------------------------------|-----------------------------|-------------------------|---------------------------------------------------------------------------------------------------------|----------------------------------|--------------------------------------------|----------------------------------------------------------------------------|
|                                        | $                           | $                       | $                                                                                                       | $                                | $                                          |                                                                       |
|                                        |                        |                    |                                                                                                    |                             |                                       |                                                                       |
| Foreign currency                            |   1,698,523       |   (1,424,776) |                 305,233      | (270,787)                        | 308,193                                    | 6,669                                                                      |
| Total                                       |    1,698,523 |   (1,424,776) |                 305,233 | (270,787)                        | 308,193                                    |                                                                       |
|                                        |                        |                    |                                                                                                    |                             |                                       |                                                                       |
| Unrealized currency gain                    |                        |                    |                                                                                                    |                             |       83,662 |                                                                       |
| Total net unrealized gain on open contracts |                        |                    |                                                                                                    |                             |      391,855      |                                                                       |

|              |            | Average number of     |
|-------------------|-----------------|-----------------------|
|              |            | contracts outstanding |
|              | Fair            | for nine months       |
|              | Value           | (absolute quantity)   |
| Option Contracts  | $               |                  |
| Options purchased | 645,887         | 3                     |
| Options written   |  (410,913) | 2                     |

----

| Futures and Forward Contracts                          | Long UnrealizedGain                                                                         | Long UnrealizedLoss                                                         |  ShortUnrealizedGain                                                                   |   Short UnrealizedLoss                                            | Net   Unrealized Gain/(Loss) | Average number of contractsoutstanding for the year  (absolute quantity) |
|--------------------------------------------------------|---------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------|--------------------------------------------------|------------------------------------------------------------------------------------|
|                                                   | $                                                                                           | $                                                                           | $                                                                                           | $                                                                           | $                                                |                                                                               |
| Foreign currency                                       | 322,002               | (671,027)            |               178,089      |    (370,007)                                                      | (540,943)                                        | 5,740                                                                              |
| Total                                                  | 322,002               | (671,027)                 |               178,089 | (370,007)            | (540,943)                                        |                                                                               |
|                                                   |                                                                                        |                                                                        |                                                                                        |                                                                        |                                             |                                                                               |
| Unrealized currency gain                               |                                                                                        |                                                                        |                                                                                        |                                                                        |   78,317                               |                                                                               |
| Total net unrealized  loss on open contracts |                                                                                        |                                                                        |                                                                                        |                                                                        |  (462,626)                                  |                                                                               |

|              |                                              | Average number of     |
|-------------------|---------------------------------------------------|-----------------------|
|              |                                              | contracts outstanding |
|              | Fair                                              | for the year          |
|              | Value                                             | (absolute quantity)   |
| Option Contracts  | $                                                 |                  |
| Options purchased |  121                                         | 2                     |
| Options written   |        – | 1                     |

|                     | For the Three Months                                                                                                                                                                             | For the Nine Months                                                                                                                                                                                                                 |
|--------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                     | Ended September 30, 2010                                                                                                                                                                         | Ended September 30, 2010                                                                                                                                                                                                            |
| Type of Instrument       |      $                                                                                                                                                                  |      $                                                                                                                                                                                                     |
|                     |                                                                                                                                                                                             |                                                                                                                                                                                                                                |
| Foreign currency         | 432,594                                                             | (276,880)                                                                                              |
| Unrealized currency gain |       50,910                          |            5,344                           |
| Total                    |     483,504                                     |     (271,536)                                                                      |

----

|                     | For the Three Months                                                                                                                                                                              | For the Nine Months                                                                                                                                                                         |
|--------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                     | Ended September 30, 2010                                                                                                                                                                          | Ended September 30, 2010                                                                                                                                                                    |
| Trading Results          |      $                                                                                                                                                                   |      $                                                                                                                                                             |
|                     |                                                                                                                                                                                              |                                                                                                                                                                                        |
| Realized                 | (403,574)                                                       | (1,168,029)                                                         |
| Net change in unrealized |     887,078                            |       896,493                         |
| Total Trading Results    |     483,504                            |     (271,536)                                        |

|                        | For the Three Months                                                                                                                                                                                     | For the Nine Months                                                                                                                                                                          |
|-----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                        | Ended September 30, 2009                                                                                                                                                                                 | Ended September 30, 2009                                                                                                                                                                     |
| Type of Instrument          |      $                                                                                                                                                                          |      $                                                                                                                                                              |
|                        |                                                                                                                                                                                                     |                                                                                                                                                                                         |
| Foreign  currency | (1,390,087)                                                                 | (2,104,828)                                                               |
| Unrealized currency loss    |        (15,550)                          |        (55,572)                        |
| Total                       |     (1,405,637)                                         |   (2,160,400)                                                        |

|                     | For the Three Months                                                                                                                                                                                    | For the Nine Months                                                                                                                                                                                                                |
|--------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                     | Ended September 30, 2009                                                                                                                                                                                | Ended September 30, 2009                                                                                                                                                                                                           |
| Trading Results          |      $                                                                                                                                                                         |      $                                                                                                                                                                                                    |
|                     |                                                                                                                                                                                                    |                                                                                                                                                                                                                               |
| Realized                 | (2,000,792)                                                                     | (3,320,751)                                                                                                                    |
| Net change in unrealized |        595,155                          |                                      1,160,351 |
| Total Trading Results    |    (1,405,637)                                                   |   (2,160,400)                                                                                                                  |

----

|                                     | UnadjustedQuoted Prices in Active Markets for Identical Assets(Level 1) | Significant Other Observable Inputs(Level 2)                                                            | Significant Unobservable Inputs(Level 3)                        |   | Total                                                                                             |
|------------------------------------------|-------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------|
|                                     | $                                                                       | $                                                                                                       |                                                            |   | $                                                                                                 |
| Assets                                   |                                                                    |                                                                                                    |                                                            |   |                                                                                              |
| Net unrealized gain on forward contracts |       –                                  | 391,855                 | n/a           |   | 391,855                |
| Options purchased                        |       –                                  | 645,887                      | n/a           |   | 645,887                |
|                                     |                                                                    |                                                                                                    |                                                            |   |                                                                                              |
| Liabilities                              |                                                                    |                                                                                                    |                                                            |   |                                                                                              |
| Options written                          |       –                                  | (410,913)                    | n/a                |   | (410,913)                        |

----

|                                     | UnadjustedQuoted Prices in Active Markets for Identical Assets(Level 1) | Significant Other Observable Inputs(Level 2)                                                        | Significant Unobservable Inputs(Level 3)             |   | Total                                                                 |
|------------------------------------------|-------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------|------------------------------------------------------|--------|-----------------------------------------------------------------------|
|                                     | $                                                                       | $                                                                                                   |                                                 |   | $                                                                     |
| Assets                                   |                                                                    |                                                                                                |                                                 |   |                                                                  |
| Net unrealized loss on forward contracts | –                                                                 | (462,626)                | n/a          |   | (462,626)           |
| Options purchased                        | –                                                                 | 121                      | n/a          |   | 121            |

----

----

|   | (e)  Improving Disclosures about Fair Value easurements |
|--------|-------------------------------------------------------------------|

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

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----

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| Primary Market | September 30, 2010                     | September 30, 2009 |
|----------------|----------------------------------------|--------------------|
| Risk Category  | Value at Risk                          | Value at Risk      |
|           |                                   |               |
| Currency       |       (1.59)% | (1.03)%            |

----

| September 30, 2010           |    |    |    |
|------------------------------|---------|---------|---------|
| Primary Market Risk Category | High    | Low     | Average |
| Currency                     | (1.59)% | (1.01)% | (1.24)% |

| September 30, 2009           |    |    |    |
|------------------------------|---------|---------|---------|
| Primary Market Risk Category | High    | Low     | Average |
| Currency                     | (1.03)% | (0.16)% | (0.59)% |

| ·   | 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 Demeter Management 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 Demeter Management LLC, 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 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 Demeter Management 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:                                                | Demeter Management LLC |
|              |                                               | (General Partner) |
|              |                                               |   |
| November 12, 2010 | By:                                                |   |
|              |                                               | Christian Angstadt |
|              |                                               | Chief Financial Officer |