EFTA02409271

To: From: Steven Elkman Sent Tue 7/20/2010 6:20:24 PM Subject Fw: S&P Step-Up Note - new trade idea 07202010 - SPX Step-Up Ranee Accrual.pdf 07202010 - SPX Step-Up Range Accrual.pdt Steven Munro Elkman Client Advisor Managing Director Deutsche Bank Alex. Brown A Division of Deutsche Bank Securities. Inc. 280 Park Avenue. 3 East New York NY 10017 phone fax This communication may contain confidential and/or privileged information. If you are not the intended recipient (or have received this communication in error) please notify the sender immediately and destroy this communication. Any unauthorized copying, disclosure or distribution of the material in this communication is strictly forbidden. Deutsche Bank does not render legal or tax advice, and the information contained in this communication should not be regarded as such. Forwarded by Steven Elknian Abidbcom on 07:20!201(1 02:20 PM William Bacas/db/dbcom To 07/20/2010 02:17 PM cc Subject S&P Step-Up Note - new trade idea All, Based on a reverse inquiry we received from a client we priced up a step-up range accrual note on the S&P 500. The pricing was attractive and we felt warranted showing it directly to the whole system. There is a closing date on this note of July 30, 2010 and does are attached below. S&P Sten-Un Range Accrual Note Underlying: S&P 500 (SPX) Maturity: 15yr/1nc (Note has 15yr maturity but may be called after the 1st year and quarterly thereafter) Coupons: 1st 3 years = 7.00% (regardless of S&P level) Then, EFTA_R1_0 1469292 EFTA02409271 8.00% for 3yrs 10.0% for 3yrs 12.0% for 3yrs 15.0% for 3yrs ...for every day the S&P >1= 850 YTM: 9.38% p.a. assuming SPX > 850 throughout Index spot: 1073 (approx 20.10% cushion) Callable: 7/30/11 Dates: Monthly pay / quarterly call Issuer. Morgan Stanley (A2./A) CUSIP 61745E2Q3 Closing: July 30, 2010 (See attached file: 07202010 - SPX Step-Up Range Accrual pd) Upon your review let me know if you may have interest and as always please feel free to call if you'd like to discuss further. Regards. Will William Bacas Director, Structured Solutions Manager Deutsche Bank Securities, Inc. 280 Park Avenue New York NY 10017 Tel. Fax This e-mail may contain confidential and/or privileged information. If you are not the intended recipient (or have received this e-mail in error), please notify the sender immediately and delete the e-mail from your computer. Any unauthorized copying, disclosure or distribution of the material is prohibited. EFTA_R1_0 1469293 EFTA02409272