Morgan Stanley Finance LLC filed a Free Writing Prospectus (FWP) dated November 2, 2026, for Preliminary Pricing Supplement No. 19,716, covering SPXF40D4 Jump Securities with an Auto-Callable Feature due December 4, 2031, linked to the S&P 500 Futures 40% Intraday 4% Decrement VT Index.

Key Highlights

  • Issuer and guarantor: Morgan Stanley Finance LLC is the issuer; Morgan Stanley is the guarantor.
  • Underlier: The securities are linked to the S&P 500 Futures 40% Intraday 4% Decrement VT Index (SPXF40D4), which was established on August 30, 2024.
  • Estimated value: $932.90 per security, or within $55.00 of that estimate, according to the filing.
  • Key thresholds: The call threshold level is 90% of the initial level; the downside threshold level is 60% of the initial level.
  • Pricing and maturity dates: Pricing date is November 30, 2026; maturity date is December 4, 2031.
  • Auto-call schedule: Up to 48 monthly determination dates, beginning December 2, 2027, with the first early redemption payment ranging from $1,212.00 to $1,222.00 per security.
  • No principal guarantee: The filing states "the securities do not guarantee the return of any principal and do not pay interest."

SPXF40D4 Jump Securities: Structure, Redemption Terms, and Risk Disclosures

According to the filing, the securities are issued by Morgan Stanley Finance LLC under Registration Statement Nos. 333-293641 and 333-293641-01, with Morgan Stanley as guarantor. The CUSIP is 61781TLK7. The securities are linked to the S&P 500 Futures 40% Intraday 4% Decrement VT Index, an index that applies a 4% per annum daily decrement to its level. The filing notes that this decrement "will adversely affect the performance of the underlier in all cases, whether the underlier appreciates or depreciates."

The filing describes an automatic early redemption feature across 48 monthly determination dates running from December 2, 2027, through October 30, 2031. Early redemption payments per security range from $1,212.00 to $1,222.00 at determination date one, rising incrementally to $2,042.333 to $2,091.50 at determination date 48. The filing includes hypothetical payment-at-maturity examples: a 0% change in the underlier produces a payment of $2,060.00 per security, while a -41% change produces $590.00 and a -100% change produces $0.00. These examples assume a call return of approximately 21.20% per annum. All payments are described as "subject to our credit risk."

The filing identifies several risk factors. It discloses that the securities "will not be listed on any securities exchange and secondary trading may be limited." It also states that the estimated value of $932.90 per security is less than the original issue price because the price includes "costs associated with issuing, selling, structuring and hedging the securities." The filing further notes that the underlier "was established on August 30, 2024 and therefore has very limited operating history," which the filing characterizes as a source of additional risk. U.S. federal income tax consequences are described as uncertain in the filing.

What Was Disclosed

Morgan Stanley Finance LLC filed a Free Writing Prospectus for auto-callable structured securities linked to the SPXF40D4 index, disclosing pricing terms, a 48-date auto-call schedule, an estimated value of $932.90 per security, and associated risk factors including no principal protection and limited secondary market liquidity.