**UNITED STATES SECURITIESAND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

 

**FORM 10-Q**

 

| **(Mark One)**                                                                                                                           | ** **                                                                                    |
|------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|
| ** **                                                                                                                               |
| **x**                                                                                                                                    | **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)  OF THE SECURITIES EXCHANGE ACT OF 1934**  |
| ** **                                                                                                                               | ** **                                                                                    | ** ** |
| **For the quarterly period ended September 30,  2007**                                                                                   |
| ** **                                                                                                                               | ** **                                                                                    | ** ** |
| **OR**                                                                                                                                   |
| ** **                                                                                                                               | ** **                                                                                    | ** ** |
| **o**                                                                                                                                    | **TRANSITION REPORT PURSUANT TO SECTION 13 OR  15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** |
| ** **                                                                                                                               | ** **                                                                                    | ** ** |
| **For the transition period from                    to** |

 

**Commission File Number 0-52384**

 

# **ML TRANSTREND DTP ENHANCED FUTURESACCESS LLC**

(Exact Name of Registrant as

specified in its charter)

 

| **Delaware**                     | ** ** | **30-0408288**                     |
|----------------------------------|------------|------------------------------------|
| (State or other  jurisdiction of |       | (IRS Employer  Identification No.) |
| incorporation or  organization)  |       |                               |

 

**c/o Merrill Lynch AlternativeInvestments LLC**

**Hopewell Building No. 2**

**1200 Merrill Lynch Drive - FirstFloor**

**Pennington,New Jersey 08534**

 (Address of principal executive offices)

(Zip Code)

 

**609-274-5838**

(Registrant’s telephone number, including area code)

 

Indicate by check mark whether the registrant (1) hasfiled all reports required to be filed by Section 13 or 15(d) of the SecuritiesExchange Act of 1934 during the preceding 12 months (or for such shorter periodthat the registrant was required to file such reports), and (2) has beensubject to such filing requirements for the past 90 days.
| Yes  x |   | No  o |
|-------------|--------|------------|

 

Indicate by check mark whether the registrant is alarge accelerated filer, an accelerated filer, or a non-accelerated filer.  See definition of “accelerated filer andlarge accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):
| Large accelerated filer o |   | Accelerated filer o |   | Non-accelerated filer x |
|---------------------------|--------|---------------------|--------|-------------------------|

 

Indicate by check mark whether registrant is a shellcompany (as defined by Rule 12b-2 of the Exchange Act).
| Yes  o |   | No  x |
|-------------|--------|------------|

 

Indicate by check mark whether the registrant hasfiled all documents and reports required to be filed by Sections 12, 13 or15(d) of the Securities Exchange Act of 1934 subsequent to the distribution ofsecurities under a plan confirmed by a court.
| Yes  o |   | No  o |
|-------------|--------|------------|

 

 

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**ML TRANSTREND DTP ENHANCED FUTURESACCESS LLC**

QUARTERLY REPORT FOR SEPTEMBER 30, 2007 ON FORM 10-Q

Table of Contents
|         | **PAGE** |
|---------|----------|
| PART I  |     |
|    |     |   |   |
| Item 1. |     | Financial Statements | 1 |
|    |     |   |   |
| Item 2. |     | Management’s Discussion and Analysis of Financial  Condition and Results of Operations | 7 |
|    |     |   |   |
| Item 3. |     | Quantitative and Qualitative Disclosures About  Market Risk | 11 |
|    |     |   |   |
| Item 4. |     | Controls and Procedures | 13 |
|    |     |   |   |
| PART II |     |
|    |     |   |   |
| Item 1. |     | Legal Proceedings | 14 |
|    |     |   |   |
| Item 2. |     | Unregistered Sales of Equity Securities and Use of  Proceeds | 14 |
|    |     |   |   |
| Item 3. |     | Defaults Upon Senior Securities | 15 |
|    |     |   |   |
| Item 4. |     | Submission of Matters to a Vote of Security Holders | 15 |
|    |     |   |   |
| Item 5. |     | Other Information | 15 |
|    |     |   |   |
| Item 6. |     | Exhibits | 15 |
|         |          |  |  |  |

 

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PART I - FINANCIAL INFORMATION

Item 1.    FinancialStatements

ML TRANSTREND DTPENHANCED FUTURESACCESS LLC

(a DelawareLimited Liability Company)

STATEMENT OF FINANCIALCONDITION

(unaudited)
| ** **                                                                            | ** ** | **September 30, 2007** | ** **  |
|---------------------------------------------------------------------------------------|------------|----------------------------------|-------------|
| **ASSETS:**                                                                           | ** ** | ** **                       | ** **  |
| Equity in commodity  futures trading accounts:                                        |       |                             |        |
| Cash (including  restricted cash of $19,003,910)                                      |       | $                                | 113,529,870 |   |
| Net unrealized  profit on open contracts                                              |       | 8,599,865                        |        |
| Cash                                                                                  |       | 25,904                           |        |
| Deferred initial offering  costs                                                      |       | 25,000                           |        |
| Accrued interest  receivable                                                          |       | 469,236                          |        |
| **TOTAL  ASSETS**                                                                     |       | 122,649,875                      |        |
|                                                                                  |       |                             |        |
| **LIABILITIES AND MEMBERS’  CAPITAL**                                            | ** ** | ** **                       | ** **  |
| LIABILITIES:                                                                          |       |                             |        |
| Brokerage  commissions payable                                                        |       | 54,965                           |        |
| Management fee  payable                                                               |       | 21,331                           |        |
| Initial offering  costs payable                                                       |       | 50,000                           |        |
| Incentive fee  payable                                                                |       | 2,317,805                        |        |
| Sponsor’s fee  payable                                                           |       | 1,381                            |        |
| Redemptions payable                                                                   |       | 3,633,443                        |        |
| Other                                                                                 |       | 36,409                           |        |
|                                                                                  |       |                             |        |
| Total  liabilities                                                                    |       | 6,115,334                        |        |
|                                                                                  |       |                             |        |
| MEMBERS’ CAPITAL:                                                                |       |                             |        |
| Members’  Interest (98,357,944 Units outstanding and Unlimited Units authorized) |       | 116,534,541                      |        |
| Total members’  capital                                                          |       | 116,534,541                      |        |
|                                                                                  |       |                             |        |
| **TOTAL  LIABILITIES AND MEMBERS’ CAPITAL**                                      |       | $                                | 122,649,875 |   |

 

**NET ASSETVALUE PER UNIT (NOTE 2)**

See notes to financialstatements.

1

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ML TRANSTREND DTPENHANCED FUTURESACCESS LLC

(a DelawareLimited Liability Company)

STATEMENTS OF INCOME 

(unaudited)
| ** **                                    | ** ** | **For the three** | ** ** | **For the period April 2,** | ** ** |
|-----------------------------------------------|------------|-----------------------------|------------|-------------------------------------------------|------------|
| ** **                                    | ** ** | **months ended**       | ** ** | **2007 (commencement of**             | ** ** |
| ** **                                    | ** ** | **September 30,**      | ** ** | **operations)**                                 | ** ** |
| ** **                                    | ** ** | **2007**                    | ** ** | **to September 30, 2007**        | ** ** |
| **TRADING  PROFIT (LOSS)**                    | ** ** | ** **                  | ** ** | ** **                                      | ** ** |
|                                          |       |                        |       |                                            |       |
| Realized                                      |       | $                           | 2,341,778  |                                            | $          | 1,556,105 |   |
| Change in unrealized                          |       | (841,290                    | )          | 8,599,865                                       |       |
| Brokerage commissions                         |       | (198,399                    | )          | (404,202                                        | )          |
|                                          |       |                        |       |                                            |       |
| Total trading profit                          |       | 1,302,089                   |       | 9,751,768                                       |       |
|                                          |       |                        |       |                                            |       |
| **INVESTMENT  INCOME:**                       | ** ** | ** **                  | ** ** | ** **                                      | ** ** |
| Interest                                      |       | 1,008,635                   |       | 2,147,009                                       |       |
|                                          |       |                        |       |                                            |       |
| **EXPENSES:**                                 | ** ** | ** **                  | ** ** | ** **                                      | ** ** |
| Management fee                                |       | 342,000                     |       | 511,683                                         |       |
| Incentive fee                                 |       | 260,355                     |       | 2,321,440                                       |       |
| Sponsor’s fee                            |       | 3,048                       |       | 3,048                                           |       |
| Other                                         |       | 58,846                      |       | 104,501                                         |       |
|                                          |       |                        |       |                                            |       |
| Total expenses                                |       | 664,249                     |       | 2,940,672                                       |       |
|                                          |       |                        |       |                                            |       |
| **NET  INVESTMENT INCOME (LOSS)**             |       | 344,386                     |       | (793,663                                        | )          |
|                                          |       |                        |       |                                            |       |
| **NET  INCOME**                               |       | $                           | 1,646,475  |                                            | $          | 8,958,105 |   |
|                                          |       |                        |       |                                            |       |
| **NET  INCOME PER UNIT:**                     | ** ** | ** **                  | ** ** | ** **                                      | ** ** |
|                                          |       |                        |       |                                            |       |
| Weighted average  number of Units outstanding |       |                        |       |                                            |       |
| Class A**                                     |       | 9,750                       |       | 9,750                                           |       |
| Class C***                                    |       | 504,099                     |       | 504,099                                         |       |
| Class D-SM                                    |       | 11,836,266                  |       | 11,815,504                                      |       |
| Class D-TF*                                   |       | 95,370,695                  |       | 97,819,616                                      |       |
|                                          |       |                        |       |                                            |       |
| Net Income per  weighted average Unit         |       |                        |       |                                            |       |
| Class A**                                     |       | $                           | 0.0779     |                                            | $          | 0.0779 |   |
| Class C***                                    |       | $                           | 0.0291     |                                            | $          | 0.0291 |   |
| Class D-SM                                    |       | $                           | 0.0169     |                                            | $          | 0.2084 |   |
| Class D-TF*                                   |       | $                           | 0.0150     |                                            | $          | 0.0662 |   |

 

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*Class D-TF commenced onJune 1, 2007

**Class A commenced onSeptember 1, 2007

***Class C commenced onJuly 1, 2007

See notes to financialstatements.

2

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ML TRANSTREND DTPENHANCED FUTURESACCESS LLC

(a DelawareLimited Liability Company)

STATEMENT OF CHANGES INMEMBERS’ CAPITAL

For the period April 2,2007 (commencement of operations) to September 30, 2007 

(unaudited)
| ** **                | ** ** | ** **                | ** ** | ** **        | ** ** | ** **      | ** ** | **Members’ Capital**   | ** ** |
|---------------------------|------------|---------------------------|------------|-------------------|------------|-----------------|------------|----------------------------------|------------|
| ** **                | ** ** | **Initial Offering** | ** ** | **Subscriptions** | ** ** | **Redemptions** | ** ** | **September 30, 2007** | ** ** |
|                      |       |                      |       |              |       |            |       |                             |       |
| Class A**                 |       | —                    |       | 9,750             |       | —          |       | 9,750                            |       |
| Class C***                |       | —                    |       | 659,114           |       | (27,091         | )          | 632,023                          |       |
| Class D-SM                |       | 12,000,000                |       | 341,860           |       | (715,603        | )          | 11,626,257                       |       |
| Class D-TF*               |       | —                    |       | 105,166,376       |       | (19,076,462     | )          | 86,089,914                       |       |
|                      |       |                      |       |              |       |            |       |                             |       |
| Total Members’ Units |       | 12,000,000                |       | 106,177,100       |       | (19,819,156     | )          | 98,357,944                       |       |

 
| ** **                   | ** ** | ** **                | ** ** | ** **        | ** ** | ** **      | ** ** | ** **          | ** **  | **Members’ Capital**   | ** ** |
|------------------------------|------------|---------------------------|------------|-------------------|------------|-----------------|------------|---------------------|-------------|----------------------------------|------------|
| ** **                   | ** ** | **Initial Offering** | ** ** | **Subscriptions** | ** ** | **Redemptions** | ** ** | **Net Income** | ** **  | **September 30, 2007** | ** ** |
|                         |       |                      |       |              |       |            |       |                |        |                             |       |
| Class A**                    |       | $                         | —     |              | $          | 9,750           |       | $                   | —      |                             | $          | 760 |   | $ | 10,510 |   |
| Class C***                   |       | —                    |       | 640,397           |       | (26,928         | )          | 14,683              |        | 628,152                          |       |
| Class D-SM                   |       | 12,000,000                |       | 407,564           |       | (793,058        | )          | 2,462,551           |        | 14,077,057                       |       |
| Class D-TF*                  |       | —                    |       | 116,913,460       |       | (21,574,749     | )          | 6,480,111           |        | 101,818,822                      |       |
|                         |       |                      |       |              |       |            |       |                |        |                             |       |
| Total Members’ Interest |       | $                         | 12,000,000 |              | $          | 117,971,171     |       | $                   | (22,394,735 | )                                | $          | 8,958,105 |   | $ | 116,534,541 |   |

 

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*Class D-TF commenced onJune 1, 2007

**Class A commenced onSeptember 1, 2007

***Class C commenced onJuly 1, 2007

See notes to financialstatements.

3

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ML TRANSTREND DTPENHANCED FUTURESACCESS LLC 

(a DelawareLimited Liability Company)

NOTES TO FINANCIALSTATEMENTS

(unaudited)

1.               SUMMARYOF SIGNIFICANT ACCOUNTING POLICIES

In the opinion of management, the financial statementscontain all adjustments necessary to present fairly the financial position ofML Transtrend DTP Enhanced FuturesAccess LLC (the “Fund”) as of September 30,2007, the results of its operations for the six months ended September 30, 2007and for the period April 2, 2007 (commencement of operations) to September 30, 2007.  However, the operating results for the interimperiod may not be indicative of the results for the full year. The Fundcommenced operations on April 2, 2007 and has a fiscal year end of December 31.

Certain information and footnote disclosures normallyincluded in annual financial statements prepared in accordance with accountingprinciples generally accepted in the United States of America (“US GAAP”) havebeen omitted.  It is suggested that thesefinancial statements be read in conjunction with Fund’s Form 10 filed with theSecurities Exchange Commission.

The preparation of financial statements in conformitywith US GAAP requires management to make estimates and assumptions that affectthe reported amounts of assets and liabilities and disclosure of contingentassets and liabilities at the date of the financial statements and the reportedamounts of revenues and expenses during the reporting period.  Actual results could differ from thoseestimates

2.               NET ASSET VALUE PERUNIT

Forfinancial reporting purposes, in conformity with US GAAP, the Fund amortizesover a twelve-month period the initial offering costs for purposes ofdetermining Net Asset Value. Such costs initially were paid by Merrill LynchAlternative Investments (“MLAI”).  Forall other purposes, including computing Net Asset Value for purposes of membersubscription and redemption activity, such costs are amortized over 60 months.Consequently, the Net Asset Value and Net Asset Value per Unit of the differentClasses for financial reporting purposes and for all other purposes are as follows:

AtSeptember 30 , 2007 the Net Asset Values of the different Classes of Units areas follows: 

|             | ** ** | **Net Asset Value**      | ** **  | ** **                     | ** ** | **Net Asset Value per Unit** | ** ** |
|-------------|------------|------------------------------------|-------------|--------------------------------|------------|--------------------------------------------------|------------|
| ** **  | ** ** | **All Other   Purposes** | ** **  | **Financial   Reporting** | ** ** | **Number of   Units**                  | ** ** | **All Other   Purposes** | ** ** | **Financial   Reporting** | ** ** |
| Class A**   |       | $                                  | 10,511      |                           | $          | 10,510                                           |       | 9,750 |   | $ | 1.0780 |   | $ | 1.0779 |   |
| Class C***  |       | 628,209                            |        | 628,152                        |       | 632,023                                          |       | 0.9940 |   | 0.9939 |   |
| Class D-SM  |       | 14,077,864                         |        | 14,077,057                     |       | 11,626,257                                       |       | 1.2109 |   | 1.2108 |   |
| Class D-TF* |       | 101,837,958                        |        | 101,818,822                    |       | 86,089,914                                       |       | 1.1829 |   | 1.1827 |   |
|        |       |                               |        |                           |       |                                             |       |   |   |   |   |
|        |       | $                                  | 116,554,542 |                           | $          | 116,534,541                                      |       | 98,357,944 |   |   |   |   |   |
|             |            |                                    |             |                                |            |                                                  |            |  |  |  |  |  |  |  |  |

 

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*Class D-TFcommenced on June 1, 2007

**Class Acommenced on September 1, 2007

***Class Ccommenced on July 1, 2007

4

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3.     MARKET AND CREDIT RISKS

The nature of this Fund has certain risks, whichcannot be presented on the financial statements.  The following summarizes some of those risks.

MarketRisk

Derivative instruments involve varying degrees ofmarket risk.  Changes in the level orvolatility of interest rates, foreign currency exchange rates or the marketvalues of the financial instruments or commodities underlying such derivativeinstruments frequently result in changes in the Fund’s Net unrealized profit onsuch derivative instruments as reflected in the Statement of FinancialCondition.  The Fund’s exposure to marketrisk is influenced by a number of factors, including the relationships amongthe derivative instruments held by the Fund as well as the volatility andliquidity of the markets in which the derivative instruments are traded.Investments in foreign markets may also entail legal and political risks.

The Sponsor of the Fund, MLAI, has procedures in placeintended to control market risk exposure, although there can be no assurancethat they will, in fact, succeed in doing so. These procedures focus primarily on monitoring the trading of TranstrendB.V., the trading advisor, calculating the Net Asset Value of the Fund as ofthe close of business on each day and reviewing outstanding positions forover-concentrations.  While MLAI does notintervene in the markets to hedge or diversify the Fund’s market exposure, MLAImay urge Transtrend B.V. to reallocate positions in an attempt to avoidover-concentrations.  However, suchinterventions are expected to be unusual. It is expected that MLAI’s basic risk control procedures will consist ofthe ongoing process of advisor monitoring, with the market risk controls beingapplied by Transtrend B.V.

CreditRisk

The risks associated withexchange-traded contracts are typically perceived to be less than thoseassociated with over-the-counter (non-exchange-traded) transactions, becauseexchanges typically provide clearinghouse arrangements in which the collectivecredit (in some cases limited in amount, in some cases not) of the members ofthe exchange is pledged to support the financial integrity of theexchange.  In over-the-countertransactions, on the other hand, traders must rely solely on the credit oftheir respective individual counterparties. Margins, which may be subject toloss in the event of a default, are generally required in exchange trading, andcounterparties may also require margin in the over-the-counter markets.

The credit riskassociated with these instruments from counterparty nonperformance is the Netunrealized profit, if any, included in the Statement of Financial Condition.The Fund attempts to mitigate this risk by dealing exclusively with MerrillLynch & Co. Inc. (“Merrill Lynch”) entities as clearing brokers.

The Fund, in its normal course of business, entersinto various contracts, with Merrill Lynch Pierce Fenner & Smith Inc. (“MLPF&S”)acting as its commodity broker.  Pursuantto the brokerage arrangement with MLPF&S (which includes a nettingarrangement), to the extent that such trading results in receivables from andpayables to MLPF&S, these receivables and payables are offset and

5

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reported as a net receivable or payable and includedin Equity in commodity futures trading accounts in the Statement of FinancialCondition.

4.               RECENTACCOUNTING PRONOUNCEMENT

In September 2006, the FASB issued Statement ofFinancial Accounting Standards No. 157, Fair Value Measurements (“FAS 157”). FAS 157 establishes a common definition for fair value under accountingprinciples generally accepted in the United States of America, establishes aframework for measuring fair value and expands disclosure requirements aboutsuch fair value measurements.  FAS 157 is effective for fiscal yearsbeginning after November 15, 2007.  The Fund is currently evaluating the impactof adopting FAS 157 on its financial statements.

6

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Item 2     Management’s Discussion and Analysis ofFinancial Condition and Results of Operations

MONTH-END NET ASSET VALUEPER UNIT

(NON US GAAP)

MLAI believes thatthe Net Asset Value used to calculate subscription and redemption value andto    report performance to investorsthroughout the period is the most valuable to the Members of the Fund.   Therefore, the charts below referencing NetAsset Value and performance measurements are based on the Net Asset Value forall other purposes, as discussed in Note 2 to the Financial Statements.

Class A

|      | ** ** | Apr. | ** ** | **May** | ** ** | **Jun.** | ** ** | **July** | ** ** | **Aug.** | ** ** | **Sept.** |
|------|------------|------|------------|---------|------------|----------|------------|----------|------------|----------|------------|-----------|
| 2007 |       | N/A  |       | N/A     |       | N/A      |       | N/A      |       | N/A      |       | $         | 1.0780 |

 

Class C

|      | ** ** | Apr. | ** ** | **May** | ** ** | **Jun.** | ** ** | **July** | ** ** | **Aug.** | ** ** | **Sept.** |
|------|------------|------|------------|---------|------------|----------|------------|----------|------------|----------|------------|-----------|
| 2007 |       | N/A  |       | N/A     |       | N/A      |       | $        | 0.9522     |     | $          | 0.9228    |   | $ | 0.9940 |
|      |            |      |            |         |            |          |            |          |            |          |            |           |  |  |  |

 

Class D-SM

|      | ** ** | Apr. | ** ** | **May** | ** ** | **Jun.** | ** ** | **July** | ** ** | **Aug.** | ** ** | **Sept.** |
|------|------------|------|------------|---------|------------|----------|------------|----------|------------|----------|------------|-----------|
| 2007 |       | $    | 1.0532     |    | $          | 1.1117   |       | $        | 1.1922     |     | $          | 1.1542    |   | $ | 1.1218 |   | $ | 1.2109 |
|      |            |      |            |         |            |          |            |          |            |          |            |           |  |  |  |  |  |  |

 

ClassD-TF

|      | ** ** | Apr. | ** ** | **May** | ** ** | **Jun.** | ** ** | **July** | ** ** | **Aug.** | ** ** | **Sept.** |
|------|------------|------|------------|---------|------------|----------|------------|----------|------------|----------|------------|-----------|
| 2007 |       | N/A  |       | N/A     |       | $        | 1.1598     |     | $          | 1.1254   |       | $         | 1.0950 |   | $ | 1.1829 |
|      |            |      |            |         |            |          |            |          |            |          |            |           |  |  |  |  |

 

PerformanceSummary

April 1, 2007 toSeptember 30, 2007

April 1, 2007 toJune 30, 2007

The Fund posted profits for the quarter withcurrencies, energy, and the interest rate sectors posting gains whileagriculture, stock indices and the metal sectors posted losses.

The currency sector posted profits for the Fund.  A slower growing pace of the economy in theUnited States pushed the U.S. dollar to a historic low against the euro at thebeginning of the quarter. Purchases of euros, British pounds, Australian andNew Zealand dollars versus the U.S. dollar produced excellent profits. Thecurrencies of emerging economies such as the Hungarian forint, Turkish lira andIsrael shekel also generated healthy profits due to their appreciation againstthe U.S. dollar. Sales of the Japanese yen, which again weakened in relation toother important currencies, also appeared to be highly profitable. In relationto the euro, gains were earned on long positions in the Polish zloty. Theweaker Japanese yen and the stronger Canadian dollar formed the basis ofprofits being posted to the Fund mid-quarter. Profits were also earned on shortpositions in the Japanese yen against the U.S. dollar and

7

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Mexican nuevo peso. The Canadian dollar also strengthened versus the British pound. Profitswere posted to the Fund at the quarters end due to the weakness of the Japaneseyen, which reached new historical lows versus various currencies. An unexpectedrate hike from the Central Bank of New Zealand caused an appreciation of thelocal currency as well as bringing up the Australian dollar. The appreciationof the British pound against the Swiss franc and the euro also generatedprofits for the Fund.

The energy sector posted profits for the Fund. Theprice development of various energy products showed a choppy course with smalllosses being posted at the beginning of the quarter through mid-quarter.Profits were posted at the quarters end trading in a difficult tradingenvironment due to weather conditions and geopolitical pressure.

The interest rate sector posted profits for the Fund.Positive indications regarding the economic recovery in Europe led to risinginterest rates in both the short- and long-term segments. Various shortpositions in several money and capital markets profited from this development.Also, a steepening yield curve in the euro and the diminishing differencebetween euro and the U.S. dollar deposits were successfully exploited. Afterthe Bank of England was called to answer to the British Parliament in Aprilregarding the high level of inflation, a rate hike was seen mid-quarter. Othermajor countries also experienced rising money and capital market rates on thebasis of robust economic growth expectations combined with increasedinflationary pressures. Various short positions in money and capital marketproducts were therefore very profitable. Sales in government bond contracts inAustralia, Germany, the United Kingdom and the United States all achieved goodresults at the quarter’s end. Profits were also earned with rising money marketrates in Europe.

The agricultural sector posted losses for theFund.  More than usual rain and frost inNorth America and extreme drought in Europe brought an abrupt end to fallingwheat prices at the beginning of the quarter which did not offset short salesthat closed out with losses being post to the Fund. Soybean purchases didreturn a profit mid-quarter due to rising prices after lower than expected cropprospects. Meat and hog purchases did not fare as well. Losses on cornpurchases were partially offset by long positions in soybeans and wheat. Thecluster eventually ended in the gain.

The metals sector posted losses for the Fund. Themetals markets at the beginning of the quarter achieved positive results withpurchases of platinum, nickel and zinc which could not offset losses sufferedon silver purchases. Purchases of metal contracts were closed with losses dueto earlier rising trends not continuing in May. The purchases of gold andsilver, as well as copper and nickel, were however loss-making which producedlosses being posted to the Fund at quarter’s end.

Stock indices posted losses for the Fund. Profits wereposted to the Fund at the beginning of quarter with purchases of various indexfutures, especially in Europe and the United States. Within Europe, positionsin Germany, Switzerland and Sweden were the lead performers. A climate ofheightened merger and acquisition activity and a still relatively low interestrate perception gave enough impetus for further rises in stock market levelsmid-quarter. Exceptional results were achieved through purchases of broad-basedindices in South Korea, as well as Canada, the United Kingdom and the UnitedStates. Chinese government officials hinted at the possibility to introducevarious new regulations in June which could ease cross-border investment and atthe same time narrow the gap between respectively higher mainland China andlower Hong Kong equity valuations. The local Chinese stock market fell harshlywhile a euphoric mood reigned over the Hong Kong stock market, which led toexisting long positions delivering profits to the Fund. However, various stockmarkets in Europe and North America suffered under the weight of higherinterest rates and worries regarding the housing and mortgage market in theUnited States. As a consequence, the quarter ended with losses being posted tothe Fund.

8

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July 1, 2007 to September 30, 2007

The Fund posted profits for the third quarter withenergy, interest rates, and the agriculture sectors posted gains while themetals, stock indices and the currency sectors posted losses.

The energy sector posted profits for the Fund. Whilecrude oil prices steadily rose, natural gas prices reached new lows and profitswere made with both developments at the beginning of the quarter. Losses postedto the Fund mid-quarter were offset at the end of the quarter. The strong marchupwards in energy prices translated into excellent profits posted to the Fundon purchases of crude oil and its derived fuels at the end of the quarter.

The interest rate sector posted profits for the Fund.Losses were posted to the Fund at the beginning of the quarter as interest ratemarkets were primarily focused on the worsening conditions of the sub-primemortgage sector and its follow-on effect to other credit markets. Furthermore,doubts were raised about the attainability of sharply priced takeovers. Thisall led to a flight to safe government bonds, which in turn brought down moneymarket rates. Gains were booked with positions profiting from a slower fall ofrates in the U.S. in comparison to Europe was not enough to offset losses. Thesituation regarding the American housing market strongly influenced theturnaround seen from a rising to a falling long term interest rate. The backend of the curve in the U.S. declined in a stronger fashion than seen in theUnited Kingdom and Europe. This development was profitable for British andEuropean capital and money market sales versus purchased American equivalentsand was the determinate for the sector’s gains mid-quarter. The aggressive cutof the federal fund rate led to a strong reduction of the rate differencebetween the United States and Europe. This convergence was taken advantage ofthrough the capital markets as well as the money markets as profits were postedto the Fund as the quarter ended.

The agriculture sector posted profits for the Fund.Due to promising prospects for the upcoming corn harvest, corn prices fellwhich favored short positions in grain posting profits for the Fund at thebeginning of the quarter. In contrast to many other markets, fundamentalreasons did play an important role in the world markets for wheat. Lowerharvest expectations resulted in handsome profits for the Fund mid-quarter.Wheat purchases also scored well when prices sharply rose after news releasedon low supply figures and difficult weather conditions in important wheatgrowing areas. Further expected scarcity in various commodities forced wheat,soybean, and soybean meal and soybean oil prices upwards resulting in gainsposted for the Fund at the end of the quarter.

The metals sector posted losses for the Fund. Copperand lead purchases posted profits to the Fund which was not enough to offsetlosses in purchases of gold and silver. Long positions in aluminum also postedlosses for the Fund at the beginning of the quarter. The commodity markets werein general defined by a massive liquidation of positions leading to thebreaking of existing trends.  Even a safehaven such as gold was sold “en masse” as fears had reached their peak posting losses for the Fund. The quarterended with small profits being posted to the Fund due to the rising trend ofgold and copper prices as well as the falling price of aluminum.

Stock indices posted losses for the Fund. The suddenchange of investor sentiment took its toll at the beginning of the quarterespecially in the United States where many indices earlier in the quarterreached new contract highs and in Europe losses were felt. The stock markets inAustralia and Japan also put in a disappointing performance. Positiveexceptions were the purchases in Hong Kong and South Korea which limited thelosses for the Fund. The stock market was distinguished by an increasing riskawareness and aversion. Financial stocks had an especially difficult time dueto uncertainties of potential sub-prime related losses mid-quarter. Purchasesin Hong Kong experienced a significant loss while profits were recorded onsales in Japan. Despite investor concern, most stock indices worldwide, partlydue to the confidence instilled by the central banks, the quarter ended withprofits being posted to the Fund. This development produced a positive resultfor various long positions. Positions in technology and telecom related stockindices did especially well. Other over-achievers were purchases of Chinese,South African and Canadian stock indices.

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The currency sector posted losses for the Fund. Thoughthe unwinding of the Japanese yen financed loans, so called “carry trades”, thevalue of the Japanese yen shot up against the other important currencies. Thisdevelopment explains most of the losses posted to the Fund at the beginning ofthe quarter. Losses continued to be posted to the Fund mid-quarter as thecurrency markets were also scathed by the increased uncertainties. The U.S.dollar appreciated against many other currencies with losses on purchases ofthe Australian and New Zealand dollars; Euros and the British pound as aconsequence. The British pound also weakened against sold Swiss francs,however, the British pound proved profitable versus purchases of Canadiandollars. The U.S. dollar footed the bill at quarter’s end with the Americanhousing and mortgage market, a forceful rate cut and increasing fear forinflation. Terrain was lost not just against the main G7 currencies butespecially in relation to emerging markets currencies. Purchases of SouthAfrican rand, the Hungarian forint, the Czech crown and the Indian rupee allscored excellently against the greenback. Furthermore, profits were earned onvarious purchases of a strengthening Canadian dollar as it reached parityversus the U.S. dollar for the first time in 31 years. The appreciation of theTurkish lira versus the Euro and the U.S. dollar also generated a positivecontribution.

Item 3.    Quantitative and Qualitative DisclosuresAbout Market Risk

The Fund is a speculativecommodity pool. The market sensitive instruments held by it are acquired forspeculative trading purposes and all or substantially all of the Fund’s assetsare subject to the risk of trading loss. Unlike an operating company, the risk of market sensitive instruments isintegral, not incidental, to the Fund’s main line of business.

Market movements resultin frequent changes in the fair market value of the Fund’s open positions and,consequently, in its earnings and cash flow. The Fund’s market risk isinfluenced by a wide variety of factors, including the level and volatility ofinterest rates, exchange rates, equity price levels, the market value offinancial instruments and contracts, the diversification effects among the Fund’sopen positions and the liquidity of the markets in which it trades.

The Fund, under thedirection of Transtrend B.V. rapidly acquires and liquidates both long andshort positions in currency markets. Consequently, it is not possible to predict how a particular futuremarket scenario will affect performance, and the Fund’s past performance is notnecessarily indicative of its future results.

Value at Risk is ameasure of the maximum amount which the Fund could reasonably be expected tolose in a given market sector. However, the inherent uncertainty of the Fund’sspeculative trading and the recurrence in the markets traded by the Fund ofmarket movements far exceeding expectations could result in actual trading ornon-trading losses far beyond the indicated Value at Risk or the Fund’sexperience to date (i.e., “risk of ruin”). In light of the foregoing, as wellas the risks and uncertainties intrinsic to all future projections, the quantificationsincluded in this section should not be considered to constitute any assuranceor representation that the Fund’s losses in any market sector will be limitedto Value at Risk or by the Fund’s attempts to manage its market risk.

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Quantifying TheFund’s Trading Value At Risk

QuantitativeForward-Looking Statements

Thefollowing quantitative disclosures regarding the Fund’s market risk exposurescontain “forward-looking statement” within the meaning of the safe harbor formcivil liability provided for such statements by the Private SecuritiesLitigation Reform Act of 1995 (set forth in Section 27A of the Securities Actof 1933 and Section 21E of the Securities Exchange Act of 1934).  All quantitative disclosures in this sectionare deemed to be forward-looking statements for purposes of the safe harbor,except for statements of historical fact.

TheFund’s risk exposure in the various market sectors traded by Transtrend B.V. isquantified below in terms of Value at Risk. Due to the Fund’s mark-to-market accounting, any loss in the fair valueof the Fund’s open positions is directly reflected in the Fund’s earnings(realized or unrealized) and cash flow (at least in the case of exchange-tradedcontracts in which profits and losses on open positions are settled dailythrough variation margin).

Exchangemaintenance margin requirements have been used by the Fund as the measure ofits Value at Risk.  Maintenance marginrequirements are set by exchanges to equal or exceed the maximum loss in thefair value of any given contract incurred in 95%-99% of the one-day timeperiods included in the historical sample (generally approximately one year)researched for purposes of establishing margin levels.  The maintenance margin levels are establishedby dealers and exchanges using historical price studies as well as anassessment of current market volatility (including the implied volatility ofthe options on a given futures contract) and economic fundamentals to provide aprobabilistic estimate of the maximum expected near-term one-day pricefluctuation.

In the case of market sensitive instruments which are notexchange-traded (almost exclusively currencies in the case of the Fund), themargin requirements for the equivalent futures positions have been used asValue at Risk.  In those rare cases inwhich a futures-equivalent margin is not available, dealers’ margins have beenused.

100% positive correlation in the different positions held in eachmarket risk category has been assumed. Consequently, the margin requirements applicable to the open contractshave been aggregated to determine each trading category’s aggregate Value atRisk.  The diversification effectsresulting from the fact that the Fund’s positions are rarely, if ever, 100%positively correlated have not been reflected.

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***TheFund’s Trading Value at Risk in Different Market Sectors***

The followingtable indicates the average, highest and lowest trading Value at Riskassociated with the Fund’s open positions by market category for the fiscal period.For the period April 2, 2007 (commencement of operations) to September 30,2007, the Fund’s average Month-end Net Asset Value for all other purposes wasapproximately $74,009,187.
|                          | ** ** | **September 30, 2007**     | ** ** |
|--------------------------|------------|--------------------------------------|------------|
| **Market Sector**   | ** ** | **Average  Value at Risk** | ** ** | **% of Average  Capitalization** | ** ** | **Highest Value  At Risk** | ** ** | **Lowest Value  At Risk** | ** ** |
|                     |       |                                 |       |   |   |   |   |   |   |
| Agricultural Commodities |       | $                                    | 327,669    |   | 0.44 | % | $ | 1,442,390 |   | $ | 2,538 |   |
| Energy                   |       | 1,051,189                            |       | 1.42 | % | 5,878,073 |   | 6,362 |   |
| Interest Rates           |       | 7,168,370                            |       | 9.69 | % | 15,556,636 |   | 1,931,446 |   |
| Metals                   |       | 534,318                              |       | 0.72 | % | 1,641,701 |   | — |   |
| Currencies               |       | 2,167,848                            |       | 2.93 | % | 8,032,323 |   | 102,024 |   |
| Stock Indices            |       | 1,814,423                            |       | 2.45 | % | 4,147,527 |   | 92,733 |   |
|                     |       |                                 |       |   |   |   |   |   |   |
| TOTAL                    |       | $                                    | 13,063,817 |   | 17.65 | % | $ | 36,698,650 |   | $ | 2,135,103 |   |

 

MaterialLimitations on Value at Risk as an Assessment of Market Risk

The face value of the market sector instruments held by theFund is typically many times the applicable maintenance margin requirement(maintenance margin requirements generally ranging between approximately 1% and10% of contract face value) as well as many times the capitalization of theFund.  The magnitude of the Fund’s openpositions creates a “risk of ruin” not typically found in most other investmentvehicles.  Because of the size of itspositions, certain market conditions — unusual, but historically recurring fromtime to time — could cause the Fund to incur severe losses over a short period oftime.   The foregoing Value at Risk table— as well as the past performance of the Fund — gives no indication of this “riskof ruin.”

**Non-Trading Risk**

Foreign Currency Balances;Cash on Deposit with MLPF&S

The Fund has non-tradingmarket risk on its foreign cash balances not needed for margin. However, thesebalances (as well as the market risk they represent) are immaterial.

The Fund also hasnon-trading market risk on the approximately 90%-95% of its assets which areheld in cash at MLPF&S. The value of this cash is not interest ratesensitive, but there is cash flow risk in that if interest rates decline sowill the cash flow generated on these monies. This cash flow risk isimmaterial.

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Item4.    Controls and Procedures

MLAI, the Sponsorof ML Transtrend DTP Enhanced FuturesAccess LLC (the “Fund”), with theparticipation of the Sponsor’s Chief Executive Officer and the Chief FinancialOfficer, has evaluated the effectiveness of the design and operation of itsdisclosure controls and procedures with respect to the Fund as of the end ofthe period of this quarterly report, and, based on this evaluation, hasconcluded that these disclosure controls and procedures are effective.  Additionally, there were no significantchanges in the Fund’s internal controls or in other factors that couldsignificantly affect these controls subsequent to the date of this evaluation,including any corrective actions with regard to significant deficiencies andmaterial weaknesses.

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PART II - OTHERINFORMATION

Item 1.            Legal Proceedings

On July 31, 2007, theCFTC issued an order against MLAI and an advisory affiliate, to which MLAI andthe affiliate consented, containing findings, which MLAI and the affiliateneither admitted nor denied, that MLAI and the affiliate filed with the NFA anumber of annual reports for commodity pools for which they acted as commoditypool operators after the deadline established by the CFTC’s regulations, inviolation of CFTC Regulation 4.22(c). MLAI and the affiliate were ordered tocease and desist from violating Regulation 4.22(c) and to pay a civil penaltyin the amount of $500,000.

Item 2.            Unregistered Sales ofEquity Securities and Use of Proceeds

(a) Issuance to accredited investors pursuant toRegulation D and Section 4(6) under the Securities Act.  The selling agent of the following Class ofUnits was MLPF&S.

CLASS A**
|            | ** ** | **Subscription** | ** ** | ** ** | ** ** |
|------------|------------|------------------|------------|------------|------------|
| ** ** | ** ** | **Amount**       | ** ** | **Units**  | ** ** | **NAV (1)** | ** ** |
| Apr-07     |       |             | —     |       | —     |   | n/a |   |
| May-07     |       |             | —     |       | —     |   | n/a |   |
| Jun-07     |       |             | —     |       | —     |   | n/a |   |
| Jul-07     |       |             | —     |       | —     |   | n/a |   |
| Aug-07     |       |             | —     |       | —     |   | n/a |   |
| Sep-07     |       |             | $          | 9,750      |       | 9,750 |   | $ | 1.0000 |   |
| Oct-07     |       |             | —     |       | —     |   | 1.0780 |   |
|            |            |                  |            |            |            |  |  |  |  |  |

 

CLASS C***
|            | ** ** | **Subscription** | ** ** | ** ** | ** ** |
|------------|------------|------------------|------------|------------|------------|
| ** ** | ** ** | **Amount**       | ** ** | **Units**  | ** ** | **NAV (1)** | ** ** |
| Apr-07     |       |             | —     |       | —     |   | n/a |   |
| May-07     |       |             | —     |       | —     |   | n/a |   |
| Jun-07     |       |             | —     |       | —     |   | n/a |   |
| Jul-07     |       |             | $          | 385,000    |       | 385,000 |   | $ | 1.0000 |   |
| Aug-07     |       |             | 79,207     |       | 83,184     |   | 0.9522 |   |
| Sep-07     |       |             | 176,190    |       | 190,930    |   | 0.9228 |   |
| Oct-07     |       |             | 24,999     |       | 25,510     |   | 0.9940 |   |
|            |            |                  |            |            |            |  |  |  |  |  |

 

CLASS D-SM
|            | ** ** | **Subscription** | ** ** | ** ** | ** ** |
|------------|------------|------------------|------------|------------|------------|
| ** ** | ** ** | **Amount**       | ** ** | **Units**  | ** ** | **NAV (1)** | ** ** |
| Apr-07     |       |             | $          | 12,000,000 |       | 12,000,000 |   | $ | 1.0000 |   |
| May-07     |       |             | —     |       | —     |   | 1.0532 |   |
| Jun-07     |       |             | —     |       | —     |   | 1.1117 |   |
| Jul-07     |       |             | 407,564    |       | 341,860    |   | 1.1922 |   |
| Aug-07     |       |             | —     |       | —     |   | 1.1218 |   |
| Sep-07     |       |             | —     |       | —     |   | 1.1542 |   |
| Oct-07     |       |             | —     |       | —     |   | 1.1218 |   |
|       |       |             |       |       |       | 1.2109 |   |
|            |            |                  |            |            |            |  |  |  |  |  |

 

CLASS D-TF*
|            | ** ** | **Subscription** | ** ** | ** **  | ** ** |
|------------|------------|------------------|------------|-------------|------------|
| ** ** | ** ** | **Amount**       | ** ** | **Units**   | ** ** | **NAV (1)** | ** ** |
| Apr-07     |       |             | —     |        | —     |   | n/a |   |
| May-07     |       |             | —     |        | —     |   | n/a |   |
| Jun-07     |       |             | $          | 116,913,460 |       | 105,166,376 |   | $ | 1.1117 |   |
| Jul-07     |       |             | —     |        | —     |   | 1.1598 |   |
| Aug-07     |       |             | —     |        | —     |   | 1.1255 |   |
| Sep-07     |       |             | —     |        | —     |   | 1.0950 |   |
| Oct-07     |       |             | —     |        | —     |   | 1.1829 |   |
|            |            |                  |            |             |            |  |  |  |  |  |

 

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(1) Beginning ofthe period Net Asset Value for all other purposes

 

*Class D-TFcommenced on June 1, 2007

**Class Acommenced on September 1, 2007

***Class Ccommenced on July 1, 2007

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(b)         None.

(c)          None.

Item 3.                                   DefaultsUpon Senior Securities

None.

Item 4.                                   Submissionof Matters to a Vote of Security Holders

None.

Item 5.                                   OtherInformation

None.

Item 6.                                   Exhibits

The following exhibitsare incorporated by reference or are filed herewith to this Quarterly Report onForm 10-Q:

31.01 and

31.02                                               Rule13a-14(a)/15d-14(a) Certifications

Exhibit 31.01

and 31.02                        Are filedherewith.

32.01 and

32.02                                               Section1350 Certifications

Exhibit 32.01

and 32.02                        Are filedherewith.

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934,the registrant has duly caused this report to be signed on its behalf by theundersigned thereunto duly authorized.

ML TRANSTREND DTP ENHANCED FUTURESACCESS LLC
|                     | By: MERRILL LYNCH  ALTERNATIVE |                                          |
|--------------------------|--------------------------------|-----------------------------------------------|
|                     | INVESTMENTS LLC                |                                          |
|                     | (Manager)                      |                                          |
|                     |                           |                                          |
|                     |                           |                                          |
| Date: November  14, 2007 | By                             | /s/ ROBERT D. OLLWERTHER                      |   |
|                     |                           | Robert D. Ollwerther                          |
|                     |                           | Chief Executive Officer and President         |
|                     |                           | (Principal Executive Officer)                 |
|                     |                           |                                          |
|                     |                           |                                          |
| Date: November  14, 2007 | By                             | /s/ BARBRA E. KOCSIS                          |   |
|                     |                           | Barbra E. Kocsis                              |
|                     |                           | Chief Financial  Officer                      |
|                     |                           | (Principal  Financial and Accounting Officer) |
|                          |                                |                                               |  |  |  |

 

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