I need to reconsider - there is no "Hawryluk" in this filing. Let me write the correct article.

Morgan Stanley MSFL SPXF40D4 Auto-Callable Notes, Nov 2026

Morgan Stanley Finance LLC filed a Free Writing Prospectus on November 2, 2026, disclosing preliminary terms for Contingent Income Auto-Callable Securities linked to the S&P 500 Futures 40% Intraday 4% Decrement VT Index, with a maturity date of November 28, 2031.

Key Highlights

  • Issuer and guarantor: Morgan Stanley Finance LLC is the issuer, with Morgan Stanley as guarantor; all payments are subject to Morgan Stanley's credit risk.
  • Contingent coupon range: The securities carry a contingent coupon of 10.50% to 11.50% per annum, paid monthly, contingent on the underlier closing at or above 50% of the initial level on the related observation date.
  • Estimated value: The filing states an estimated value of $893.60 per security, or within $43.60 of that estimate, against an original issue price of $1,000 per security.
  • Auto-call feature: Beginning after one year, the securities may be automatically redeemed monthly if the underlier closes at or above 100% of its initial level on a redemption determination date.
  • Downside threshold: At maturity, if the underlier has fallen more than 50% from its initial level, investors receive a payment reflecting the full percentage decline, with a -100% scenario resulting in $0.00 per security.
  • CUSIP: 61781TSA2; pricing date is November 24, 2026; final observation date and maturity are November 24, 2031 and November 28, 2031, respectively.
  • Underlier history: According to the filing, the S&P 500 Futures 40% Intraday 4% Decrement VT Index was established on August 30, 2024, giving it very limited operating history.

Preliminary Terms of the SPXF40D4-Linked Securities Filed November 2, 2026

According to the Free Writing Prospectus to Preliminary Pricing Supplement No. 19,853, filed November 2, 2026 under Registration Statement Nos. 333-293641 and 333-293641-01, Morgan Stanley Finance LLC is offering Contingent Income Auto-Callable Securities due November 28, 2031. The securities are linked to the S&P 500 Futures 40% Intraday 4% Decrement VT Index (SPXF40D4), a benchmark established only on August 30, 2024. The filing notes that NYSE:MS is the parent guarantor, and that Morgan Stanley Finance LLC, as a finance subsidiary, "has no independent operations and will have no independent assets."

The filing discloses that the contingent coupon, ranging from 10.50% to 11.50% per annum, is paid monthly only if the underlier closes at or above the coupon barrier level of 50% of the initial level on the relevant observation date. The auto-call feature activates beginning after one year: if the underlier closes at or above 100% of the initial level on any monthly redemption determination date, the securities are automatically redeemed and no further payments are made. The filing sets out a hypothetical payment table showing that losses begin only when the underlier's closing level falls more than 50% from its initial level, at which point the investor bears the full percentage decline, down to $0.00 at a -100% scenario.

The filing discloses several risk factors specific to this structure. The estimated value of $893.60 per security is lower than the $1,000 original issue price, a gap the filing attributes to "costs associated with issuing, selling, structuring and hedging the securities." Additionally, the underlier incorporates a 4% per annum decrement deducted daily, which the filing states "will adversely affect the performance of the underlier in all cases, whether the underlier appreciates or depreciates." The securities will not be listed on any securities exchange, and secondary trading may be limited. U.S. federal income tax consequences of investing in the securities are described in the filing as uncertain.

What Was Disclosed

Morgan Stanley Finance LLC filed preliminary terms for auto-callable structured notes linked to the SPXF40D4 index, maturing November 28, 2031, with a contingent coupon of 10.50% to 11.50% per annum, an estimated value of $893.60 per security, and principal at risk below a 50% downside threshold.