Products May 8, 2008

Morgan Stanley Launches Two Euro ETNs

Morgan Stanley will issue two exchange-traded notes (ETNs), which aim to provide leveraged directional exposure to the euro/U.S. dollar exchange rate.

Reported by

Rebecca Moore

The Double Long Euro ETN (ticker: URR) is designed to offer an investable alternative to a two-times leveraged, long investment in the euro. That means for every 1% strengthening of the euro relative to the U.S. dollar, the level of the index will generally increase by 2%, while for every 1% weakening of the euro relative to the U.S. dollar, the index will generally decrease by 2%, Morgan Stanley said.

The underlying index is the Double Long Euro Index (ticker: DLONGEUR), which was developed by Morgan Stanley and is maintained by Standard & Poor’s.

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The Double Short Euro ETN (DRR) is designed to offer an investable alternative to a two-times leveraged, short investment in the euro. That means for every 1% weakening of the euro relative to the U.S. dollar, the level of the index will generally increase by 2%, while for every 1% strengthening of the euro relative to the U.S. dollar, the index will generally decrease by 2%. The underlying index is the Double Short Euro Index (ticker: DSHRTEUR), Morgan Stanley said.

The two ETNs will be traded on the NYSE Arca.

For more information, go to www.marketvectorsETNs.com.