1. Organization Morgan Stanley Smith Barney Spectrum Currency and Commodity L.P. ( Spectrum Currency ), Morgan Stanley Smith Barney Spectrum Global Balanced L.P. ( Spectrum Global Balanced ), Morgan Stanley Smith Barney Spectrum Select L.P. ( Spectrum Select ), Morgan Stanley Smith Barney Spectrum Strategic L.P. ( Spectrum Strategic ) and Morgan Stanley Smith Barney Spectrum Technical L.P. ( Spectrum Technical ) (individually, a  Partnership , or collectively, the  Partnerships ) are limited partnerships organized to engage primarily in the speculative trading of futures contracts, options on futures and forward contracts, and forward contracts on physical commodities and other commodity interests, including, but not limited to, foreign currencies, financial instruments, metals, energy, and agricultural products (collectively,  Futures Interests ) (refer to Note 6. Financial Instruments). Ceres Managed Futures LLC, a Delaware limited liability company, acts as the general partner ( Ceres  or the  General Partner ) and commodity pool operator of the Partnerships. Ceres is a wholly-owned subsidiary of Morgan Stanley Smith Barney Holdings LLC ( MSSBH ). MSSBH is wholly-owned indirectly by Morgan Stanley. Prior to June 2013, Citigroup Inc. was an indirect minority owner of MSSBH. Morgan Stanley Smith Barney LLC is doing business as Morgan Stanley Wealth Management ( Morgan Stanley Wealth Management ). This entity, previously acted as a non-clearing commodity broker for the Partnerships. Morgan Stanley Wealth Management is a principal subsidiary of MSSBH. The clearing commodity broker is Morgan Stanley &amp; Co. LLC ( MS&amp;Co. ). Morgan Stanley &amp; Co. International plc ( MSIP ) previously served as a clearing commodity broker for the Partnerships. MS&amp;Co. also acts as the counterparty on all trading of foreign currency forward contracts. Morgan Stanley Capital Group Inc. ( MSCG ) acts as the counterparty on all trading of options on foreign currency forward contracts. MS&amp;Co. and MSCG are wholly-owned subsi