EMEA Risk Management Transactions for New Issues of Fixed Income Securities

Morgan Stanley is committed to conducting its activities in the fixed income markets in a manner consistent with the Core Principles contained in the Risk Management Transactions for New Issuance Standard for the Fixed Income Markets published by the Fixed Income, Currencies and Commodities Markets Standards Board (“FMSB”). For details of our Statement of Commitment to this FMSB Standard, please visit Statement of Commitment to Standards Published by FICC Markets Standards Board.

This FMSB Standard describes the key mechanics and risks in the new issuance process regarding risk management transactions (“RMTs”) and related hedging activities. Morgan Stanley, when acting in its capacity as a dealer in the context of a new issue of fixed income securities, may in its sole discretion hedge its risk incurred through the execution of RMTs on behalf of its issuer and investor clients in connection with such new issue. Any such hedging activity may take place before, during or after the time of pricing of the new issue or otherwise at the time for determination of any benchmark, fixing or other reference price or rate which may be utilised in the pricing of the new issue.