Morgan Stanley Finance LLC filed a Free Writing Prospectus to Preliminary Pricing Supplement No. 19,688 on November 2, 2026, outlining terms for SX5E Dual Directional Buffered PLUS securities due November 28, 2031.

Key Highlights

  • Issuer and guarantor: Morgan Stanley Finance LLC is the issuer, with Morgan Stanley serving as guarantor of all payments.
  • Underlier: The securities are linked to the EURO STOXX 50 Index (SX5E), a broad European equity benchmark.
  • Leverage factor: The leverage factor is disclosed as a range of 156% to 171%, with hypothetical upside examples calculated at the 156% floor.
  • Buffer amount: A 15% buffer is provided on the downside, meaning the maximum potential loss is 85% of principal.
  • Estimated value: The estimated value is $923.00 per security, or within $55.00 of that estimate, which is less than the $1,000.00 stated principal amount.
  • Pricing and maturity dates: The pricing date is November 24, 2026, the observation date is November 24, 2031, and the maturity date is November 28, 2031.
  • CUSIP: The securities carry CUSIP 61781TLH4 and will not be listed on any securities exchange.

Structure and Payment Terms of the MSFL SX5E Buffered PLUS Securities

According to the filing, the securities are structured notes issued by Morgan Stanley Finance LLC (MSFL) under Registration Statement Nos. 333-293641 and 333-293641-01. The notes offer three distinct payment scenarios at maturity depending on the performance of the EURO STOXX 50 Index from the pricing date through the observation date. The filing states that MSFL, as a finance subsidiary, "has no independent operations and will have no independent assets," meaning all payment obligations depend on Morgan Stanley's credit standing as guarantor.

The filing illustrates the upside scenario using a leverage factor of 156%: if the underlier appreciates 5%, investors would receive $1,078 per security, or 107.80% of the stated principal amount. In the absolute return participation scenario, if the underlier depreciates 5%, investors would receive $1,050 per security, reflecting the 100% absolute return participation rate applied within the 15% buffer. In the downside scenario, if the underlier depreciates 95%, investors would receive only $200 per security, representing a loss of 80% of principal.

The filing discloses a hypothetical payment table spanning a range of underlier performances. At a 100% gain in the underlier, the payment at maturity per security would be $2,560.00 (assuming the 156% leverage factor). At a 15% decline, the payment would be $1,150.00, while at a 16% decline, the payment falls to $990.00, illustrating the point at which the buffer is breached. The filing also notes that the estimated value of $923.00 per security is below the $1,000.00 original issue price, a difference the filing attributes to costs associated with "issuing, selling, structuring and hedging the securities."

What Was Disclosed

Morgan Stanley Finance LLC filed a Free Writing Prospectus on November 2, 2026, summarizing terms for structured notes linked to the EURO STOXX 50 Index, with CUSIP 61781TLH4, a 15% downside buffer, a leverage factor of 156% to 171%, and an estimated value of $923.00 per security, maturing November 28, 2031.