**UNITED STATESSECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C.20549**

**FORM 10-Q**

**(Mark One)**

**x****QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGEACT OF 1934**

**For the quarterly period endedSeptember 30, 2006**

**OR**

**o****TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGEACT OF 1934**

**For the transition period from                to                **

**Commission File Number 0-51087**

# **MLAPPLETON FUTURESACCESS LLC**

(Exact Name of Registrant asspecified in its charter)

| **Delaware**                     | ** ** | **20-1227880**                     |
|----------------------------------|------------|------------------------------------|
| (State or other  jurisdiction of |       | (IRS Employer  Identification No.) |
| incorporation or  organization)  |       |                               |

 

**c/oMerrill Lynch Alternative Investments LLCPrinceton Corporate Campus800 Scudders Mill Road - Section 2HPlainsboro, New Jersey 08536**(Address of principal executive offices)(Zip Code)

**609-282-6091**(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 theSecurities Exchange Act of 1934 during the preceding 12 months (or for suchshorter period that the registrant was required to file such reports), and (2)has been subject to such filing requirements for the past 90 days. Yes xNo o

Indicate by check mark if the registrant is a well-known seasonedissuer, as defined in Rule 405 of the Securities Act.

Yes oNo x

Indicate by check mark if the registrant is not required to filereports pursuant to Section 13 or 15(d) of the Act.

Yes oNo x

Indicate by check markwhether the registrant (1) has filed all reports required to be filed bySection 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding12 months (or for such shorter period that the registrant was required to filesuch reports), and (2) has been subject to such filing requirements for thepast 90 days.

Yes xNo o

Indicate by check mark ifdisclosure of delinquent filers pursuant to Item 405 of Regulation S-K is notcontained herein, and will not be contained, to the best of registrant’sknowledge, in definitive proxy or information statements incorporated byreference in Part III of this Form 10-K or any amendment to this Form 10-K. x

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           Acceleratedfiler o           Non-acceleratedfiler x

Indicate by check mark if the registrant is a shell company (as definedby Rule 12b-2 of the Act).

Yes oNo x

 

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**ML APPLETON FUTURESACCESS LLC**

QUARTERLY REPORT FOR SEPTEMBER 30, 2006 ON FORM 10-Q

Table of Contents
|          | ** **                                                                                  | **PAGE** |
|----------|---------------------------------------------------------------------------------------------|----------|
|     | PART I                                                                                      |     |
|     |                                                                                        |     |
| Item 1.  | Financial Statements                                                                        | 2        |
|     |                                                                                        |     |
| Item 2.  | Management’s Discussion and Analysis of Financial  Condition and Results of Operations | 9        |
|     |                                                                                        |     |
| Item 3.  | Quantitative and Qualitative Disclosures About  Market Risk                                 | 12       |
|     |                                                                                        |     |
| Item 4.  | Controls and Procedures                                                                     | 12       |
|     |                                                                                        |     |
|     | PART II                                                                                     |     |
|     |                                                                                        |     |
| Item 1.  | Legal Proceedings                                                                           | 13       |
|     |                                                                                        |     |
| Item 2.  | Changes in Securities and Use of Proceeds                                                   | 13       |
|     |                                                                                        |     |
| Item 3.  | Defaults Upon Senior Securities                                                             | 13       |
|     |                                                                                        |     |
| Item 4.  | Submission of Matters to a Vote of Security Holders                                         | 13       |
|     |                                                                                        |     |
| Item 5.  | Other Information                                                                           | 13       |
|     |                                                                                        |     |
| Item 5a. | Recent Sales of Unregistered Securities: Uses of  Proceeds From Registered Securities       | 14       |
|     |                                                                                        |     |
| Item 6.  | Exhibits                                                                                    | 15       |

 

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PART I - FINANCIAL INFORMATION

Item 1.    Financial Statements

ML APPLETONFUTURESACCESS LLC

(a Delaware Limited Liability Company)

STATEMENTS OF FINANCIAL CONDITION
| ** **                                                                             | ** ** | **September 30,** | ** ** | **December 31,** | ** ** |
|----------------------------------------------------------------------------------------|------------|------------------------|------------|-----------------------|------------|
| ** **                                                                             | ** ** | **2006**               | ** ** | **2005**              | ** ** |
| ** **                                                                             | ** ** | **(unaudited)**        | ** ** | ** **            | ** ** |
| **ASSETS:**                                                                            |       |                   |       |                  |       |
| Equity in commodity  futures trading accounts:                                         |       |                   |       |                  |       |
| Cash                                                                                   |       | $                      | 72,565,964 |                  | $          | 21,237,799 |   |
| Net unrealized  gain (loss) on open contracts                                          |       | 216,599                |       | (728,432              | )          |
| Cash                                                                                   |       | 328,117                |       | 29,573                |       |
| Accrued interest                                                                       |       | 287,203                |       | 62,139                |       |
|                                                                                   |       |                   |       |                  |       |
| **TOTAL  ASSETS**                                                                      |       | $                      | 73,397,883 |                  | $          | 20,601,079 |   |
|                                                                                   |       |                   |       |                  |       |
| **LIABILITIES AND MEMBERS’  CAPITAL:**                                            |       |                   |       |                  |       |
| LIABILITIES:                                                                           |       |                   |       |                  |       |
| Management fee  payable                                                                |       | $                      | 122,066    |                  | $          | 33,026 |   |
| Sponsor’s fee  payable                                                            |       | 110,591                |       | 36,994                |       |
| Performance fee  payable                                                               |       | —                 |       | 427,382               |       |
| Redemptions  payable                                                                   |       | 434,485                |       | 40,610                |       |
| Initial offering  costs payable                                                        |       | 28,547                 |       | 41,409                |       |
| Other payables                                                                         |       | 158,120                |       | 69,012                |       |
|                                                                                   |       |                   |       |                  |       |
| Total  liabilities                                                                     |       | 853,809                |       | 648,433               |       |
|                                                                                   |       |                   |       |                  |       |
| MEMBERS’ CAPITAL:                                                                 |       |                   |       |                  |       |
|  Sponsor’s  Interest (20,324 and 20,324 Units issued and outstanding)        |       | 19,653                 |       | 22,203                |       |
|  Members’ Interest  (74,716,832 and 18,307,945 Units issued and outstanding) |       | 72,524,421             |       | 19,930,443            |       |
|                                                                                   |       |                   |       |                  |       |
| Total members’  capital                                                           |       | 72,544,074             |       | 19,952,646            |       |
|                                                                                   |       |                   |       |                  |       |
| **TOTAL LIABILITIES AND MEMBERS’  CAPITAL**                                       |       | $                      | 73,397,883 |                  | $          | 20,601,079 |   |

 

**NET ASSET VALUE PER UNIT (Note 2)**

See notes to financialstatements.

2

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ML APPLETON FUTURESACCESSLLC

(a Delaware Limited Liability Company)

STATEMENTS OFOPERATIONS

(unaudited)
| ** **                                   | ** ** | **For the three** | ** ** | **For the three** | ** ** | **For the nine** | ** ** | **For the six** | ** ** |
|----------------------------------------------|------------|-----------------------------|------------|-----------------------------|------------|----------------------------|------------|---------------------------|------------|
| ** **                                   | ** ** | **months ended**       | ** ** | **months ended**       | ** ** | **months ended**      | ** ** | **months ended**     | ** ** |
| ** **                                   | ** ** | **September 30,**      | ** ** | **September 30,**      | ** ** | **September 30,**     | ** ** | **September 30,**    | ** ** |
| ** **                                   | ** ** | **2006**                    | ** ** | **2005**                    | ** ** | **2006**                   | ** ** | **2005 (1)**         | ** ** |
| **TRADING  PROFITS (LOSSES):**               | ** ** | ** **                  | ** ** | ** **                  | ** ** | ** **                 | ** ** | ** **                | ** ** |
|                                         |       |                        |       |                        |       |                       |       |                      |       |
| Realized                                     |       | $                           | 8,519,993  |                        | $          | (35,525                    | )          | $                         | (967,615   | ) | $ | (177,688 | ) |
| Change in unrealized                         |       | (484,137                    | )          | 576,768                     |       | 945,030                    |       | 970,585                   |       |
| Brokerage Commissions                        |       | —                      |       | —                      |       | —                     |       | (2,971                    | )          |
|                                         |       |                        |       |                        |       |                       |       |                      |       |
| Total trading profits (losses)               |       | 8,035,856                   |       | 541,243                     |       | (22,585                    | )          | 789,926                   |       |
|                                         |       |                        |       |                        |       |                       |       |                      |       |
| **INVESTMENT  INCOME:**                      | ** ** | ** **                  | ** ** | ** **                  | ** ** | ** **                 | ** ** | ** **                | ** ** |
|                                         |       |                        |       |                        |       |                       |       |                      |       |
| Interest                                     |       | 817,442                     |       | 87,772                      |       | 1,653,572                  |       | 125,659                   |       |
|                                         |       |                        |       |                        |       |                       |       |                      |       |
| **EXPENSES:**                                | ** ** | ** **                  | ** ** | ** **                  | ** ** | ** **                 | ** ** | ** **                | ** ** |
| Management fee                               |       | 342,100                     |       | 59,418                      |       | 723,121                    |       | 90,113                    |       |
| Incentive fee                                |       | —                      |       | 108,088                     |       | —                     |       | 155,777                   |       |
| Sponsor’s fee                           |       | 308,916                     |       | 64,276                      |       | 671,479                    |       | 98,051                    |       |
| Other                                        |       | 213,289                     |       | 27,076                      |       | 437,265                    |       | 51,972                    |       |
|                                         |       |                        |       |                        |       |                       |       |                      |       |
| Total expenses before reimbursement          |       | 864,305                     |       | 258,858                     |       | 1,831,865                  |       | 395,913                   |       |
|                                         |       |                        |       |                        |       |                       |       |                      |       |
| Sponsor’s fee reimbursement             |       | —                      |       | (244                        | )          | —                     |       | (10,137                   | )          |
|                                         |       |                        |       |                        |       |                       |       |                      |       |
| Total expenses                               |       | 864,305                     |       | 258,614                     |       | 1,831,865                  |       | 385,776                   |       |
|                                         |       |                        |       |                        |       |                       |       |                      |       |
| **NET  INVESTMENT LOSS**                     |       | (46,863                     | )          | (170,842                    | )          | (178,293                   | )          | (260,117                  | )          |
|                                         |       |                        |       |                        |       |                       |       |                      |       |
| **NET  INCOME (LOSS)**                       |       | $                           | 7,988,993  |                        | $          | 370,401                    |       | $                         | (200,878   | ) | $ | 529,809 |   |
| ** **                                   | ** ** | ** **                  | ** ** | ** **                  | ** ** | ** **                 | ** ** | ** **                | ** ** |
| **NET  INCOME (LOSS) PER UNIT:**             | ** ** | ** **                  | ** ** | ** **                  | ** ** | ** **                 | ** ** | ** **                | ** ** |
| Weighted average number of Units outstanding |       |                        |       |                        |       |                       |       |                      |       |
| Class A                                      |       | 6,417,476                   |       | 1,313,648                   |       | 4,607,151                  |       | 662,114                   |       |
| Class C                                      |       | 46,672,581                  |       | 8,743,282                   |       | 34,097,854                 |       | 4,577,070                 |       |
| Class D                                      |       | 13,995,065                  |       | 375,509                     |       | 8,936,806                  |       | 240,744                   |       |
| Class I                                      |       | 5,707,801                   |       | 1,125,796                   |       | 4,258,262                  |       | 437,278                   |       |
|                                         |       |                        |       |                        |       |                       |       |                      |       |
| Net income (loss) per weighted average Unit  |       |                        |       |                        |       |                       |       |                      |       |
| Class A                                      |       | $                           | 0.1114     |                        | $          | 0.0405                     |       | $                         | (0.0042    | ) | $ | 0.1074 |   |
| Class C                                      |       | $                           | 0.1073     |                        | $          | 0.0275                     |       | $                         | (0.0222    | ) | $ | 0.0810 |   |
| Class D                                      |       | $                           | 0.1151     |                        | $          | 0.0295                     |       | $                         | 0.0795     |   | $ | 0.0756 |   |
| Class I                                      |       | $                           | 0.1152     |                        | $          | 0.0581                     |       | $                         | (0.0311    | ) | $ | 0.1591 |   |

 

----

(1)commencement of operations April 1, 2005

Seenotes to financial statements.

3

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ML APPLETON FUTURESACCESSLLC

(a Delaware Limited Liability Company)

STATEMENTS OFCHANGES IN MEMBERS’ CAPITAL

For the ninemonths ended September 30, 2006 and the six months ended September 30, 2005 (1)

(unaudited)
| ** **                 | ** ** | ** **   | ** ** | **Initial**  | ** ** | ** **        | ** ** | ** **      | ** ** | ** ** | ** ** | **Members’ Capital** | ** ** | ** **                      | ** ** | ** **        | ** ** | ** **      | ** ** | ** **        | ** ** | ** **                  | ** ** |
|----------------------------|------------|--------------|------------|--------------|------------|-------------------|------------|-----------------|------------|------------|------------|--------------------------------|------------|---------------------------------|------------|-------------------|------------|-----------------|------------|-------------------|------------|-----------------------------|------------|
| ** **                 | ** ** | **Initial**  | ** ** | **Offering** | ** ** | ** **        | ** ** | ** **      | ** ** | **Net**    | ** ** | **September 30,**         | ** ** | **Members’ Capital**  | ** ** | ** **        | ** ** | ** **      | ** ** | ** **        | ** ** | **Members Capital**         | ** ** |
| ** **                 | ** ** | **Offering** | ** ** | **Costs**    | ** ** | **Subscriptions** | ** ** | **Redemptions** | ** ** | **Income** | ** ** | **2005**                       | ** ** | **December 31, 2005** | ** ** | **Subscriptions** | ** ** | **Redemptions** | ** ** | **Net Loss** | ** ** | **September 30, 2006** | ** ** |
|                       |       |         |       |         |       |              |       |            |       |       |       |                           |       |                            |       |              |       |            |       |              |       |                        |       |
| Class A                    |       | 564,525      |       | —       |       | 1,039,553         |       | (19,500         | )          | —     |       | 1,584,578                      |       | 2,015,034                       |       | 4,987,575         |       | (277,019        | )          | —            |       | 6,725,590                   |       |
| Class C                    |       | 3,840,000    |       | —       |       | 7,434,235         |       | (886,844        | )          | —     |       | 10,387,391                     |       | 14,289,916                      |       | 36,457,976        |       | (2,768,476      | )          | —            |       | 47,979,416                  |       |
| Class D                    |       | 332,331      |       | —       |       | 43,178            |       | —          |       | —     |       | 375,509                        |       | 375,509                         |       | 13,619,556        |       | —          |       | —            |       | 13,995,065                  |       |
| Class I                    |       | 177,000      |       | —       |       | 1,333,662         |       | (10,000         | )          | —     |       | 1,500,662                      |       | 1,627,486                       |       | 4,917,322         |       | (528,047        | )          | —            |       | 6,016,761                   |       |
|                       |       |         |       |         |       |              |       |            |       |       |       |                           |       |                            |       |              |       |            |       |              |       |                        |       |
| Total Members’  Units |       | 4,913,856    |       | —       |       | 9,850,628         |       | (916,344        | )          | —     |       | 13,848,140                     |       | 18,307,945                      |       | 59,982,429        |       | (3,573,542      | )          | —            |       | 74,716,832                  |       |
|                       |       |         |       |         |       |              |       |            |       |       |       |                           |       |                            |       |              |       |            |       |              |       |                        |       |
| Class A                    |       | —       |       | —       |       | 10,158            |       | —          |       | —     |       | 10,158                         |       | 10,158                          |       | —            |       | —          |       | —            |       | 10,158                      |       |
| Class C                    |       | —       |       | —       |       | 10,166            |       | —          |       | —     |       | 10,166                         |       | 10,166                          |       | —            |       | —          |       | —            |       | 10,166                      |       |
| Class D                    |       | —       |       | —       |       | —            |       | —          |       | —     |       | —                         |       | —                          |       | —            |       | —          |       | —            |       | —                      |       |
| Class I                    |       | —       |       | —       |       | —            |       | —          |       | —     |       | —                         |       | —                          |       | —            |       | —          |       | —            |       | —                      |       |
|                       |       |         |       |         |       |              |       |            |       |       |       |                           |       |                            |       |              |       |            |       |              |       |                        |       |
| Total Sponsor’s Units |       | —       |       | —       |       | 20,324            |       | —          |       | —     |       | 20,324                         |       | 20,324                          |       | —            |       | —          |       | —            |       | 20,324                      |       |

 

----

(1)commencement of operations April 1, 2005

Seenotes to financial statements.

4

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ML APPLETON FUTURESACCESSLLC

(a Delaware Limited Liability Company)

STATEMENTS OFCHANGES IN MEMBERS’ CAPITAL

For the ninemonths ended September 30, 2006 and the six months ended September 30, 2005 (1) (continued)

(unaudited)

 
| ** **                     | ** ** | ** **                           | ** ** | ** **               | ** ** | ** **        | ** ** | ** **      | ** ** | ** **                         | ** ** | **Members’**      | ** ** | **Members’**     | ** ** | ** **        | ** ** | ** **      | ** ** | ** **                         | ** ** | **Members’**      | ** ** |
|--------------------------------|------------|--------------------------------------|------------|--------------------------|------------|-------------------|------------|-----------------|------------|------------------------------------|------------|------------------------|------------|-----------------------|------------|-------------------|------------|-----------------|------------|------------------------------------|------------|------------------------|------------|
| ** **                     | ** ** | ** **                           | ** ** | **Initial**              | ** ** | ** **        | ** ** | ** **      | ** ** | ** **                         | ** ** | **Capital**            | ** ** | **Capital**           | ** ** | ** **        | ** ** | ** **      | ** ** | **Net**                            | ** ** | **Capital**            | ** ** |
| ** **                     | ** ** | **Initial**                          | ** ** | ** Offering ** | ** ** | ** **        | ** ** | ** **      | ** ** | **Net**                            | ** ** | **September 30,** | ** ** | **December 31,** | ** ** | ** **        | ** ** | ** **      | ** ** | **  Income  ** | ** ** | **September 30,** | ** ** |
| ** **                     | ** ** | **  Offering  ** | ** ** | **Costs**                | ** ** | **Subscriptions** | ** ** | **Redemptions** | ** ** | **  Income  ** | ** ** | **2005**               | ** ** | **2005**              | ** ** | **Subscriptions** | ** ** | **Redemptions** | ** ** | **(Loss)**                         | ** ** | **2006**               | ** ** |
|                           |       |                                 |       |                     |       |              |       |            |       |                               |       |                   |       |                  |       |              |       |            |       |                               |       |                   |       |
| Class A                        |       | $                                    | 564,525    |                     | $          | (5,388            | )          | $               | 1,018,860  |                               | $          | (19,941                | )          | $                     | 70,613     |              | $          | 1,628,669       |       | $                                  | 2,205,634  |                   | $          | 4,616,896 |   | $ | (253,247 | ) | $ | (17,908 | ) | $ | 6,551,375 |   |
| Class C                        |       | 3,840,000                            |       | (37,796                  | )          | 7,309,676         |       | (863,170        | )          | 370,512                            |       | 10,619,222             |       | 15,516,532            |       | 33,771,671        |       | (2,519,793      | )          | (756,766                           | )          | 46,011,644             |       |
| Class D                        |       | 332,331                              |       | (1,138                   | )          | 40,795            |       | —          |       | 18,201                             |       | 390,189                |       | 418,886               |       | 12,931,146        |       | —          |       | 708,821                            |       | 14,058,853             |       |
| Class I                        |       | 177,000                              |       | (4,231                   | )          | 1,310,741         |       | (10,094         | )          | 69,584                             |       | 1,543,000              |       | 1,789,391             |       | 4,706,813         |       | (461,180        | )          | (132,475                           | )          | 5,902,549              |       |
|                           |       |                                 |       |                     |       |              |       |            |       |                               |       |                   |       |                  |       |              |       |            |       |                               |       |                   |       |
| Total Members’  Interests |       | $                                    | 4,913,856  |                     | $          | (48,553           | )          | $               | 9,680,072  |                               | $          | (893,205               | )          | $                     | 528,910    |              | $          | 14,181,080      |       | $                                  | 19,930,443 |                   | $          | 56,026,526 |   | $ | (3,234,220 | ) | $ | (198,328 | ) | $ | 72,524,421 |   |
|                           |       |                                 |       |                     |       |              |       |            |       |                               |       |                   |       |                  |       |              |       |            |       |                               |       |                   |       |
| Class A                        |       | $                                    | —     |                     | $          | —            |       | $               | 10,000     |                               | $          | —                 |       | $                     | 472        |              | $          | 10,472          |       | $                                  | 11,142     |                   | $          | — |   | $ | — |   | $ | (1,242 | ) | $ | 9,900 |   |
| Class C                        |       | —                               |       | —                   |       | 9,999             |       | —          |       | 427                                |       | 10,426                 |       | 11,061                |       | —            |       | —          |       | (1,308                             | )          | 9,753                  |       |
| Class D                        |       | —                               |       | —                   |       | —            |       | —          |       | —                             |       | —                 |       | —                |       | —            |       | —          |       | —                             |       | —                 |       |
| Class I                        |       | —                               |       | —                   |       | —            |       | —          |       | —                             |       | —                 |       | —                |       | —            |       | —          |       | —                             |       | —                 |       |
|                           |       |                                 |       |                     |       |              |       |            |       |                               |       |                   |       |                  |       |              |       |            |       |                               |       |                   |       |
| Total Sponsor’s  Interest |       | $                                    | —     |                     | $          | —            |       | $               | 19,999     |                               | $          | —                 |       | $                     | 899        |              | $          | 20,898          |       | $                                  | 22,203     |                   | $          | — |   | $ | — |   | $ | (2,550 | ) | $ | 19,653 |   |
|                           |       |                                 |       |                     |       |              |       |            |       |                               |       |                   |       |                  |       |              |       |            |       |                               |       |                   |       |
| Total Members’ Capital    |       | $                                    | 4,913,856  |                     | $          | (48,553           | )          | $               | 9,700,071  |                               | $          | (893,205               | )          | $                     | 529,809    |              | $          | 14,201,978      |       | $                                  | 19,952,646 |                   | $          | 56,026,526 |   | $ | (3,234,220 | ) | $ | (200,878 | ) | $ | 72,544,074 |   |

 

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(1)commencement of operations April 1, 2005

Seenotes to financial statements.

5

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ML APPLETONFUTURESACCESS LLC 

(a Delaware Limited Liability Company)

NOTES TO FINANCIALSTATEMENTS

(unaudited)

1.               SUMMARY OFSIGNIFICANT ACCOUNTING POLICIES

In the opinion ofmanagement, the financial statements contain all adjustments necessary topresent fairly the financial position of ML Appleton FuturesAccess LLC (the “Fund”)as of September 30, 2006, and the results of its operations for the three andnine months ended September 30, 2006 and for the three and six months endedSeptember 30, 2005.  However, theoperating results for the interim period may not be indicative of the resultsfor the full year. The Fund commenced operations on April 1, 2005. Therefore,the Statements of Operations and Statements of Changes in Members’ Capitalcontain information only for the six month period ended September 30, 2005.

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 the financial statements andnotes thereto included in the Fund’s Annual Report on Form 10-K filed with theSecurities and Exchange Commission for the period ended December 31, 2005.

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

For financial reporting purposes, in conformity withUS GAAP, the Fund deducted the total initial offering costs at inception fromMembers’ Capital for purposes of determining Net Asset Value.  For all other purposes, including computingNet Asset Value for purposes of member subscription and redemption activity,such costs are amortized over 60 months. Consequently, the Net Asset Value andNet Asset Value per Unit of the different Classes for financial reportingpurposes and for all other purposes are as follows:

At September 30, 2006 theNet Asset Values of the different series of Units are as follows:
|            | ** ** | **Net Asset Value** | ** ** | ** **    | ** ** | **Net Asset Value per Unit** | ** ** |
|------------|------------|-------------------------------|------------|---------------|------------|--------------------------------------------------|------------|
| ** ** | ** ** | **All Other**            | ** ** | **Financial** | ** ** | **Number of**                               | ** ** | **All Other** | ** ** | **Financial** | ** ** |
| ** ** | ** ** | **Purposes**                  | ** ** | **Reporting** | ** ** | **Shares**                                       | ** ** | **Purposes** | ** ** | **Reporting** | ** ** |
| Class A    |       | $                             | 6,564,570  |          | $          | 6,561,275                                        |       | 6,735,748 |   | $ | 0.9746 |   | $ | 0.9741 |   |
| Class C    |       | 46,044,144                    |       | 46,021,397    |       | 47,989,582                                       |       | $ | 0.9595 |   | $ | 0.9590 |   |
| Class D    |       | 14,058,853                    |       | 14,058,853    |       | 13,995,065                                       |       | $ | 1.0046 |   | $ | 1.0046 |   |
| Class I    |       | 5,905,055                     |       | 5,902,549     |       | 6,016,761                                        |       | $ | 0.9814 |   | $ | 0.9810 |   |
|       |       | $                             | 72,572,622 |          | $          | 72,544,074                                       |       | 74,737,156 |   |   |   |   |   |

 

6

----

At December 31, 2005 the Net Asset Values of thedifferent series of Units are as follows:
|            | ** ** | **Net Asset Value** | ** ** | ** **    | ** ** | **Net Asset Value per Unit** | ** ** |
|------------|------------|-------------------------------|------------|---------------|------------|--------------------------------------------------|------------|
| ** ** | ** ** | **All Other**            | ** ** | **Financial** | ** ** | **Number of**                               | ** ** | **All Other** | ** ** | **Financial** | ** ** |
| ** ** | ** ** | **Purposes**                  | ** ** | **Reporting** | ** ** | **Shares**                                       | ** ** | **Purposes** | ** ** | **Reporting** | ** ** |
| Class A    |       | $                             | 2,221,377  |          | $          | 2,216,776                                        |       | 2,025,192 |   | $ | 1.0969 |   | $ | 1.0946 |   |
| Class C    |       | $                             | 15,559,817 |          | $          | 15,527,592                                       |       | 14,300,082 |   | $ | 1.0881 |   | $ | 1.0858 |   |
| Class D    |       | $                             | 419,756    |          | $          | 418,887                                          |       | 375,509 |   | $ | 1.1178 |   | $ | 1.1155 |   |
| Class I    |       | $                             | 1,793,105  |          | $          | 1,789,391                                        |       | 1,627,486 |   | $ | 1.1018 |   | $ | 1.0995 |   |
|       |       | $                             | 19,994,055 |          | $          | 19,952,646                                       |       | 18,328,269 |   |   |   |   |   |

 

3.               FAIR VALUE ANDOFF-BALANCE SHEET RISK

The nature of this Fundhas certain risks, which cannot all be presented on the financialstatements.  The following summarizessome of those risks.

### Market Risk

Derivative instrumentsinvolve varying degrees of off-balance sheet market risk.  Changes in the level or volatility ofinterest rates, foreign currency exchange rates or the market values of thefinancial instruments or commodities underlying such derivative instrumentsfrequently result in changes in the Fund’s net unrealized profit (loss) on suchderivative 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.

The Sponsor of the Fund, Merrill Lynch AlternativeInvestments (“MLAI”), has procedures in place intended to control market riskexposure, although there can be no assurance that they will, in fact, succeedin doing so.  These procedures focusprimarily on monitoring the trading of Appleton Capital Management (“Appleton”),the trading advisor, calculating the Net Asset Value of the Fund as of theclose of business on each day and reviewing outstanding positions forover-concentrations.  While MLAI does notitself intervene in the markets to hedge or diversify the Fund’s marketexposure, MLAI may urge Appleton 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 Appleton itself.

Credit Risk

The risksassociated with exchange-traded contracts are typically perceived to be lessthan those associated with over-the-counter (non-exchange-traded) transactions,because exchanges typically provide clearinghouse arrangements in which thecollective credit (in some cases limited in amount, in some cases not) of themembers of the 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.

7

----

The credit riskassociated with these instruments from counterparty nonperformance is the netunrealized profit, if any, included in the Statements 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 reportedas a net receivable or payable and included in equity from commodity futurestrading accounts in the Statements of Financial Condition.

4.               RECENT ACCOUNTINGPRONOUNCEMENTS

In July 2006, the Financial Accounting StandardsBoard (“FASB”) issued Interpretation No. 48 (“FIN 48”) entitled “Accounting forUncertainty in Income Taxes — an interpretation of FASB Statement No. 109”. FIN48 prescribes the minimum recognition threshold a tax position must meet inconnection with accounting for uncertainties in income tax positions taken orexpected to be taken by an entity before being measured and recognized in thefinancial statements. Adoption of FIN 48 is required for fiscal years beginningafter December 15, 2006. The impact on the Fund financial statements, if any,is currently being assessed.

In September 2006, the Securities ExchangeCommission (“SEC”) staff also issued Staff Accounting Bulletin No. 108,*“Considering the Effects of Prior Year Misstatementswhen Quantifying Misstatements in Current Year Financial Statements”*(“SAB 108”). While not an official rule or interpretation of the SEC, SAB 108was issued to address the diversity in practice in quantifying misstatementsfrom prior years and assessing their effect on current year financialstatements. SAB 108 is effective for the first annual period ending afterNovember 15, 2006, with early application encouraged. The Fund has assessed theimpact of SAB 108 on its financial statements and does not expect the impact ofadoption to be material to its financial statements.

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 theimpact of adopting FAS 157 on its financial statements.

8

----

Item2:    Management’s Discussion and Analysisof Financial Condition and Results of Operations

MONTH-END NETASSET VALUE PER UNIT

(NON US GAAP)

MLAI believes that the Net Asset Value used to calculate subscriptionand redemption value and to report performance to investors throughout the yearis 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
|      | ** ** | **Jan.** | ** ** | **Feb.** | ** ** | **Mar.** | ** ** | **Apr.** | ** ** | **May** | ** ** | **Jun.** | ** ** | **Jul.** | ** ** | **Aug.** | ** ** | **Sep.** | ** ** |
|------|------------|----------|------------|----------|------------|----------|------------|----------|------------|---------|------------|----------|------------|----------|------------|----------|------------|----------|------------|
| 2005 |       | n/a      |       | n/a      |       | n/a      |       | $        | 0.9844     |    | $          | 0.9424   |       | $        | 1.0084     |     | $          | 1.0226   |       | $ | 0.9499 |   | $ | 1.0309 |   |
| 2006 |       | $        | 1.1026     |     | $          | 1.0013   |       | $        | 0.9367     |    | $          | 0.8956   |       | $        | 0.8506     |     | $          | 0.8663   |       | $ | 0.8507 |   | $ | 0.9728 |   | $ | 0.9746 |   |
|      |            |          |            |          |            |          |            |          |            |         |            |          |            |          |            |          |            |          |            |  |  |  |  |  |  |  |  |  |

 

Class C
|      | ** ** | **Jan.** | ** ** | **Feb.** | ** ** | **Mar.** | ** ** | **Apr.** | ** ** | **May** | ** ** | **Jun.** | ** ** | **Jul.** | ** ** | **Aug.** | ** ** | **Sep.** | ** ** |
|------|------------|----------|------------|----------|------------|----------|------------|----------|------------|---------|------------|----------|------------|----------|------------|----------|------------|----------|------------|
| 2005 |       | n/a      |       | n/a      |       | n/a      |       | $        | 0.9836     |    | $          | 0.9409   |       | $        | 1.0059     |     | $          | 1.0200   |       | $ | 0.9458 |   | $ | 1.0256 |   |
| 2006 |       | $        | 1.0929     |     | $          | 0.9915   |       | $        | 0.9268     |    | $          | 0.8854   |       | $        | 0.8402     |     | $          | 0.8550   |       | $ | 0.8389 |   | $ | 0.9585 |   | $ | 0.9595 |   |
|      |            |          |            |          |            |          |            |          |            |         |            |          |            |          |            |          |            |          |            |  |  |  |  |  |  |  |  |  |

 

Class D
|      | ** ** | **Jan.** | ** ** | **Feb.** | ** ** | **Mar.** | ** ** | **Apr.** | ** ** | **May** | ** ** | **Jun.** | ** ** | **Jul.** | ** ** | **Aug.** | ** ** | **Sep.** | ** ** |
|------|------------|----------|------------|----------|------------|----------|------------|----------|------------|---------|------------|----------|------------|----------|------------|----------|------------|----------|------------|
| 2005 |       | n/a      |       | n/a      |       | n/a      |       | $        | 0.9856     |    | $          | 0.9448   |       | $        | 1.0122     |     | $          | 1.0294   |       | $ | 0.9585 |   | $ | 1.0415 |   |
| 2006 |       | $        | 1.1251     |     | $          | 1.0231   |       | $        | 0.9583     |    | $          | 0.9174   |       | $        | 0.8724     |     | $          | 0.8896   |       | $ | 0.8747 |   | $ | 1.0014 |   | $ | 1.0046 |   |
|      |            |          |            |          |            |          |            |          |            |         |            |          |            |          |            |          |            |          |            |  |  |  |  |  |  |  |  |  |

 

Class I
|      | ** ** | **Jan.** | ** ** | **Feb.** | ** ** | **Mar.** | ** ** | **Apr.** | ** ** | **May** | ** ** | **Jun.** | ** ** | **Jul.** | ** ** | **Aug.** | ** ** | **Sep.** | ** ** |
|------|------------|----------|------------|----------|------------|----------|------------|----------|------------|---------|------------|----------|------------|----------|------------|----------|------------|----------|------------|
| 2005 |       | n/a      |       | n/a      |       | n/a      |       | $        | 0.9847     |    | $          | 0.9430   |       | $        | 1.0094     |     | $          | 1.0208   |       | $ | 0.9495 |   | $ | 1.0308 |   |
| 2006 |       | $        | 1.1079     |     | $          | 1.0060   |       | $        | 0.9414     |    | $          | 0.9004   |       | $        | 0.8554     |     | $          | 0.8715   |       | $ | 0.8561 |   | $ | 0.9793 |   | $ | 0.9814 |   |
|      |            |          |            |          |            |          |            |          |            |         |            |          |            |          |            |          |            |          |            |  |  |  |  |  |  |  |  |  |

 

 

Performance Summary

January 1, 2006 to September 30, 2006

January 1, 2006 to March 31, 2006

The Fund posted anet loss trading in financials and currencies due to difficult tradingconditions for all currency market participants as the market reversed somelong established trends and themes.

The maindifficulties continue to stem from the lack of direction in the Japaneseyen.  There appears to be two oppositeforces pulling on the U.S. dollar and the Japanese yen. However, thesignificant interest rate differential and the outlook for further rates hikesfrom the U.S. Federal Reserve would appear to support the U.S. dollar. Againstthis, there appears to be a reluctance to hold U.S. currency against the backdropof increasing deficits and the war in Iraq. As a result, the trading continuedto be trapped in the 116.00 to 119.00 range. Losses for the Fund continuedthrough the end of the quarter due to the unwinding of the carry trades acrossthe board.

9

----

The traditionalpractice of holding a high yielding currency at the expense of a low-yield oneis commonplace in the foreign exchange markets. The rationale is that in theabsence of any movement in the spot price, the currency manager will benefitfrom the interest rate differential therein. Reflecting on the movement in the first quarter, or lack thereof, in themajor currency markets, Japanese yen, Euro, British pound and Canadian dollarshowed that the price action in that time period was a trend-follower’snightmare, with either little or no direction accompanied by patchy levels ofvolatility.

April 1, 2006 to June 30, 2006

The Fund posted anet trading loss in financials and currencies due to difficult tradingconditions for all currency market participants as the market reversed somelong established trends and themes.

The beginning ofthe second quarter proved to be uneventful from a performance point of view. Inthe middle of the quarter, for the fifth time this year, the Japanese yenstrengthened sharply, causing the slide in the Australian dollar to theJapanese yen which resulted in most of the losses incurred at this time and inthis one position.  At the end of thequarter the Fund reversed its four month losing streak with 25% Risk Programrecording a gain of roughly 1.82%. The quarter ended uneventful, with theinterim performance never straying far above or below breakeven. Furthermore,positions were only marginally changed throughout the month as the previouslyheld portfolio continued to present the best case for risk adjusted returns.

The traditionalpractice of holding a high yielding currency at the expense of a low-yield iscommonplace in the foreign exchange markets. The rationale is that in theabsence of any movement in the spot price, the currency manager will benefitfrom the interest rate differential therein. Reflecting on the movement in the second quarter, or lack thereof, inthe major currency markets, Japanese yen, Euro, British pound and Canadiandollar will show that the price action in that time period was a trend-follower’snightmare, with little or no direction accompanied by patchy levels ofvolatility.

July 1, 2006 toSeptember 30, 2006

The Fund postedgains trading in over the counter currency forward contracts and exchangetraded currency futures contracts.

The beginning ofthe quarter proved to be uneventful from a performance point of view. The lackof pattern contributed to the frustration of trend-followers and range-tradersalike. There remains reluctance on the part of the major currencies to explorenew territory above or below recent marks. In such an environment, aninvestment approach predicated on the presence of a certain level of volatilityis always going to suffer until such time as the trends return. The trade rangeexhibited by the U.S. dollar against the two major currencies, the Euro andJapanese yen showed the level of movement was insufficient for the Fund to makeinroads into the current year’s drawdown. However, mid-quarter posted thelargest gain in one month that the Fund has experienced due to long positionsin the Euro and the Japanese yen. The prospect of the Bank of Japan raisingrates has been keeping the Japanese yen at levels that would seem to defy theobvious interest rate differential with other economic blocks. At the sametime, it appears more and more certain that the European Central Bank is poisedto raise rates further before the end of the year. Interest rates are the keydeterminant in currency values.  This iswhere the momentum behind the Euro and the Japanese yen move came from. Thequarter ended as uneventful both in terms of the performance and also thepositions held.

10

----

April 1, 2005 toSeptember 30, 2005

April 1, 2005 to June 30, 2005

The Fund posted again for the second quarter despite losses in the first two months of thequarter.  The Fund does primarily all ofits trading in the currency sector.

The majority oftrading revolved around the Canadian dollar early in the quarter. Previousgains made from a long Canadian dollar position versus the Japanese yenreversed to losses as the trend came to an end in April. Holding shortpositions in the Canadian dollar helped to get back from a downward trend to amore flat performance. However, the dominant short position soon experienced areversal too sharp to avoid losses when the Canadian dollar/Japanese yenposition experienced a sharp reversal as it began to rise in quick succession.The strength of the Canadian dollar throughout the quarter attributed toprofits late in the quarter as the Fund added to its long positions.

Trading in theU.S. dollar was complex. The U.S. dollar appreciated against the Japanese yenand Euro then gradually slid back down early in the quarter.  During the middle of the quarter the U.S.dollar began to move upwards against the Japanese yen and the Euro, whichcontinued through the end of the quarter. The Euro’s continual decline was responsible for the gains that wererealized in the latter part of the quarter.

The Japanese yenhas proven to be a volatile market to trade in. The Japanese yen contributed to most of the losses early in thequarter.  Towards the end of the quarter,the Japanese yen held steady against the U.S. dollar but remained high on theportfolio’s agenda as the Fund had a large exposure in the U.S. dollar/Japanese yen position.

July 1, 2005 to September 30, 2005

The Fund posted again for the third quarter thanks to a particularly strong quarter end. TheFund does primarily all of its trading in the currency sector.

The big news inthe beginning of the quarter was the decision by the People’s Bank of China(PBOC) on July 21st to alter their longstanding currency policy.The decision to move to a managed float was probably the best conclusion thatcurrency market participants could have hoped for. The announcement caused theU.S. dollar / Japanese yen to drop early in the quarter and the real timecalculation of volatility for the Fund jumped substantially causing the riskmanagement module to conclude the portfolio had exceeded its volatility limits.It was as a result of this, and not due to any perceived trend reversal, thatmore than half of the positions on the book were closed. As the quarterprogressed, markets returned to their prior levels. Although much of the losseshad been locked in, these recoveries allowed the programs to creep back intopositive territory for the month and indeed for the year. As the quarter cameto an end the Japanese yen reached 14-month lows against the U.S. dollar, aswell as multi-year lows against the Canadian dollar. As a result, there wereprofits to be made in the major currency markets and their crosses in thelatter part of the quarter.

The Canadiandollar / Japanese yen position had been a profitable pair for the Fundthroughout the quarter, with a large range in price fluctuation being one thatwas played nicely several times, both long and short. During the middle of thequarter the U.S. dollar / Canadian dollar position remained steady, theCanadian dollar appeared to be showing signs of longer term strength. With theother major currencies showing such indecision, it was this trade that seemedthe most promising. The Canadian dollar continued to march on. However, as thequarter drew to a close the long exposure was slightly reduced.

11

----

Outright positionsin the U.S. dollar had been thin on the ground this year, with an ongoingbattle between the bulls and the bears on the currency proving inconclusive.The tail end of the quarter saw this change somewhat. With U.S. dollar /Japanese yen and Euro / U.S. dollar getting above and below significant levelsrespectively, the Fund reacted by taking on more and more outright U.S. dollarexposure as the quarter drew to a close.

The recentaddition of the Australian dollar to the trading opportunity set reaped instantbenefits. As the quarter came to an end the Australian dollar was on the riseand prompted the Fund to take more exposure in the Australian currency.

Item 3. Quantitative andQualitative Disclosures About Market Risk

Notapplicable

Item4. Controls and Procedures

MLAI, the Sponsorof ML Appleton FuturesAccess LLC, with the participation of the Sponsor’s ChiefExecutive Officer and the Chief Financial Officer, has evaluated theeffectiveness of the design and operation of its disclosure controls andprocedures with respect to the Fund as of the end of the period of thisquarterly report, and, based on this evaluation, has concluded that thesedisclosure 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.

12

----

PART II - OTHER INFORMATION
| Item 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Legal Proceedings                                   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                |
| Neither the Fund nor MLAI has ever been the subject  of any material litigation. Merrill Lynch is the 100% indirect owner of MLAI,  Merrill Lynch International Bank (“MLIB”), MLPF&S and all other Merrill  Lynch entities involved in the operation of the Fund. Merrill Lynch as well  as certain of its subsidiaries and affiliates have been named as defendants  in civil actions, arbitration proceedings and claims arising out of their respective  business activities. Although the ultimate outcome of these actions cannot be  predicted at this time and the results of legal proceedings cannot be  predicted with certainty, it is the opinion of management that the result of  these matters will not be materially adverse to the business operations or  the financial condition of MLAI or the Fund. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Item 2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Changes in Securities and Use of Proceeds           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | (a)                                                 | None. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | (b)                                                 | None. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | (c)                                                 | None. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | (d)                                                 | None. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                |
| Item 3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Defaults Upon  Senior Securities                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | None.                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                |
| Item 4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Submission of Matters to a Vote of Security Holders |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | None.                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                |
| Item 5.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Other Information                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | None.                                               |

13

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| Item 5(a). | Recent Sales of Unregistered Securities:  Uses of Proceeds From Registered  Securities:                                                                                    |
|------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|       |                                                                                                                                                                            |
|       | Issuance to  accredited investors pursuant to Regulation D and Section 4(6) under the  Securities Act.  The selling agent of  the following Class of Units was MLPF&S. |

 

CLASS A
| ** ** | ** ** | **Subscription** | ** ** | ** ** | ** ** | ** **       | ** ** |
|------------|------------|------------------|------------|------------|------------|------------------|------------|
| ** ** | ** ** | **Amount**       | ** ** | **Units**  | ** ** | **NAV **(1) | ** ** |
| Jan-06     |       | $                | 462,669    |       | 421,798    |             | $          | 1.0969 |   |
| Feb-06     |       | 288,589          |       | 261,735    |       | 1.1026           |       |
| Mar-06     |       | 512,670          |       | 512,004    |       | 1.0013           |       |
| Apr-06     |       | 593,761          |       | 633,886    |       | 0.9367           |       |
| May-06     |       | 650,316          |       | 726,123    |       | 0.8956           |       |
| Jun-06     |       | 1,003,265        |       | 1,179,479  |       | 0.8506           |       |
| Jul-06     |       | 397,791          |       | 459,184    |       | 0.8663           |       |
| Aug-06     |       | 445,569          |       | 523,767    |       | 0.8507           |       |
| Sep-06     |       | 262,266          |       | 269,599    |       | 0.9728           |       |
| Oct-06     |       | 29,250           |       | 30,012     |       | 0.9746           |       |
|            |            |                  |            |            |            |                  |            |  |  |

 

CLASS C
| ** ** | ** ** | **Subscription** | ** ** | ** ** | ** ** | ** **       | ** ** |
|------------|------------|------------------|------------|------------|------------|------------------|------------|
| ** ** | ** ** | **Amount**       | ** ** | **Units**  | ** ** | **NAV **(1) | ** ** |
| Jan-06     |       | $                | 1,980,960  |       | 1,820,568  |             | $          | 1.0881 |   |
| Feb-06     |       | 3,054,912        |       | 2,795,235  |       | 1.0929           |       |
| Mar-06     |       | 6,161,674        |       | 6,214,497  |       | 0.9915           |       |
| Apr-06     |       | 6,034,434        |       | 6,511,042  |       | 0.9268           |       |
| May-06     |       | 5,120,927        |       | 5,783,744  |       | 0.8854           |       |
| Jun-06     |       | 3,915,917        |       | 4,660,697  |       | 0.8402           |       |
| Jul-06     |       | 4,109,926        |       | 4,806,931  |       | 0.8550           |       |
| Aug-06     |       | 2,187,962        |       | 2,608,132  |       | 0.8389           |       |
| Sep-06     |       | 1,204,959        |       | 1,257,130  |       | 0.9585           |       |
| Oct-06     |       | 1,569,402        |       | 1,635,646  |       | 0.9595           |       |
|            |            |                  |            |            |            |                  |            |  |  |

 

CLASS D
| ** ** | ** ** | **Subscription** | ** ** | ** ** | ** ** | ** **       | ** ** |
|------------|------------|------------------|------------|------------|------------|------------------|------------|
| ** ** | ** ** | **Amount**       | ** ** | **Units**  | ** ** | **NAV **(1) | ** ** |
| Jan-06     |       | $                | 1,084,997  |       | 970,655    |             | $          | 1.1178 |   |
| Feb-06     |       | —           |       | —     |       | 1.1251           |       |
| Mar-06     |       | —           |       | —     |       | 1.0231           |       |
| Apr-06     |       | 6,196,499        |       | 6,466,137  |       | 0.9583           |       |
| May-06     |       | 4,987,550        |       | 5,436,614  |       | 0.9174           |       |
| Jun-06     |       | 85,000           |       | 97,432     |       | 0.8724           |       |
| Jul-06     |       | 577,100          |       | 648,718    |       | 0.8896           |       |
| Aug-06     |       | —           |       | —     |       | 0.8747           |       |
| Sep-06     |       | —           |       | —     |       | 1.0014           |       |
| Oct-06     |       | —           |       | —     |       | 1.0046           |       |
|            |            |                  |            |            |            |                  |            |  |  |

 

CLASS I
| ** ** | ** ** | **Subscription** | ** ** | ** ** | ** ** | ** **       | ** ** |
|------------|------------|------------------|------------|------------|------------|------------------|------------|
| ** ** | ** ** | **Amount**       | ** ** | **Units**  | ** ** | **NAV **(1) | ** ** |
| Jan-06     |       | $                | 144,997    |       | 131,600    |             | $          | 1.1018 |   |
| Feb-06     |       | 977,753          |       | 882,528    |       | 1.1079           |       |
| Mar-06     |       | 334,370          |       | 332,376    |       | 1.0060           |       |
| Apr-06     |       | 1,766,201        |       | 1,876,143  |       | 0.9414           |       |
| May-06     |       | 48,000           |       | 53,309     |       | 0.9004           |       |
| Jun-06     |       | 206,695          |       | 241,636    |       | 0.8554           |       |
| Jul-06     |       | 501,376          |       | 575,302    |       | 0.8715           |       |
| Aug-06     |       | 555,498          |       | 648,871    |       | 0.8561           |       |
| Sep-06     |       | 171,923          |       | 175,557    |       | 0.9793           |       |
| Oct-06     |       | 9,999            |       | 10,189     |       | 0.9814           |       |
|            |            |                  |            |            |            |                  |            |  |  |

 

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(1) Net Asset Value for all other purposes

14

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Item6.            Exhibits

The following exhibits are incorporated by referenceor are filed herewith to this Quarterly Report on Form 10-Q:

31.01 and

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

Exhibit 31.01

and 31.02:      Are filed herewith.

32.01 and

32.02               Section1350 Certifications

Exhibit 32.01

and 32.02       Are filed herewith.

15

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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 APPLETON FUTURESACCESS  LLC |
|--------------------------|--------------------------------|
|                     |                           |
|                     |                           |
|                     | By: MERRILL  LYNCH ALTERNATIVE |
|                     | INVESTMENTS LLC                |
|                     | (General  Partner)             |
|                     |                           |
|                     |                           |
| Date: November  14, 2006 | By                             | /s/ BENJAMIN WESTON |   |
|                     |                           | Benjamin Weston |
|                     |                           | Chief Executive  Officer and President |
|                     |                           | (Principal Executive Officer) |
|                     |                           |
|                     |                           |
| Date: November  14, 2006 |                           |
|                     | By                             | /s/ BARBRA E. KOCSIS |   |
|                     |                           | Barbra E. Kocsis |
|                     |                           | Chief Financial  Officer |
|                     |                           | (Principal  Financial and Accounting Officer) |
|                          |                                |  |  |  |

 

16

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