**UNITED STATES SECURITIES 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  EXCHANGE ACT OF 1934**  |
|                                                                                               |
| **For the quarterly period ended June 30, 2006**                                                   |
| ** **                                                                                         |
| **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 0-51085**

# **ML ASPECTFUTURESACCESS LLC**(Exact Name of Registrant asspecified in its charter)

| **Delaware**                     | ** ** | **20-1227650**                     |
|----------------------------------|------------|------------------------------------|
| (State or other  jurisdiction of |       | (IRS Employer  Identification No.) |
| incorporation or  organization)  |       |                               |

 

**c/o Merrill Lynch AlternativeInvestments LLCPrinceton Corporate Campus800 Scudders Mill Road - Section 2GPlainsboro, New Jersey 08536**

(Address ofprincipal executive offices)

(Zip Code)

**609-282-6996**

(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  x No o

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

Yes o   No x

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

Yes o   No 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 x   No 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 II of this Form 10-Q or any amendment to this Form 10-Q. 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      Accelerated filer o      Non-accelerated filer x     

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

Yes o   No x

 

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**ML ASPECT FUTURESACCESS LLC**

QUARTERLY REPORT FOR JUNE 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                                                                                    |       | 14       |

 

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PART I - FINANCIAL INFORMATION

Item 1.    Financial Statements

ML ASPECT FUTURESACCESS LLC(a Delaware Limited Liability Company)

STATEMENTS OF FINANCIAL CONDITION
| ** **                                                                             | ** ** | **June 30,** | ** ** | **December 31,** | ** ** |
|----------------------------------------------------------------------------------------|------------|-------------------|------------|-----------------------|------------|
| ** **                                                                             | ** ** | **2006**          | ** ** | **2005**              | ** ** |
| ** **                                                                             | ** ** | **(unaudited)**   | ** ** | ** **            | ** ** |
| **ASSETS:**                                                                            |       |              |       |                  |       |
| Equity in commodity futures  trading accounts:                                         |       |              |       |                  |       |
| Cash                                                                                   |       | $                 | 69,492,027 |                  | $          | 30,348,029 |   |
| Net unrealized  profit on open contracts                                               |       | 2,231,621         |       | 638,884               |       |
| Cash                                                                                   |       | 403,769           |       | 18,796                |       |
| Prepaid filing fee                                                                     |       | 5,646             |       | —                |       |
| Accrued interest  receivable                                                           |       | 261,611           |       | 104,310               |       |
|                                                                                   |       |              |       |                  |       |
| **TOTAL  ASSETS**                                                                      |       | $                 | 72,394,674 |                  | $          | 31,110,019 |   |
|                                                                                   |       |              |       |                  |       |
| **LIABILITIES AND MEMBERS’  CAPITAL:**                                            |       |              |       |                  |       |
| LIABILITIES:                                                                           |       |              |       |                  |       |
| Brokerage  commissions payable                                                         |       | $                 | 36,081     |                  | $          | 15,491 |   |
| Management fee  payable                                                                |       | 119,830           |       | 50,943                |       |
| Sponsor’s fee  payable                                                            |       | 107,017           |       | 43,565                |       |
| Performance fee  payable                                                               |       | 527,054           |       | 422,270               |       |
| Redemptions  payable                                                                   |       | 159,009           |       | 37,220                |       |
| Initial offering  costs payable                                                        |       | 50,695            |       | 60,707                |       |
| Other payables                                                                         |       | —            |       | 75,170                |       |
|                                                                                   |       |              |       |                  |       |
| Total  liabilities                                                                     |       | 999,686           |       | 705,366               |       |
|                                                                                   |       |              |       |                  |       |
| MEMBERS’ CAPITAL:                                                                 |       |              |       |                  |       |
|  Sponsor’s Interest (20,647 and 20,647 Units  issued and outstanding)        |       | 23,103            |       | 21,954                |       |
|  Members’ Interest (63,546,021 and 28,535,392  Units issued and outstanding) |       | 71,371,885        |       | 30,382,699            |       |
|                                                                                   |       |              |       |                  |       |
| Total members’  capital                                                           |       | 71,394,988        |       | 30,404,653            |       |
|                                                                                   |       |              |       |                  |       |
| **TOTAL  LIABILITIES AND MEMBERS’ CAPITAL**                                       |       | $                 | 72,394,674 |                  | $          | 31,110,019 |   |
|                                                                                   |       |              |       |                  |       |
| **NET ASSET VALUE PER UNIT (Note 2)**                                                  |       |              |       |                  |       |

 

See notes tofinancial statements.

2

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ML ASPECT FUTURESACCESS LLC(a Delaware Limited Liability Company)

STATEMENTS OF OPERATIONS(unaudited)
| ** **                                   | ** ** | **For the three** | ** ** | **For the three** | ** ** | **For the six** | ** ** |
|----------------------------------------------|------------|-----------------------------|------------|-----------------------------|------------|---------------------------|------------|
| ** **                                   | ** ** | **months ended**       | ** ** | **months ended**       | ** ** | **months ended**     | ** ** |
| ** **                                   | ** ** | **June 30,**           | ** ** | **June 30,**           | ** ** | **June 30,**         | ** ** |
| ** **                                   | ** ** | **2006**                    | ** ** | **2005(1)**                 | ** ** | **2006**                  | ** ** |
| **TRADING  PROFITS (LOSSES):**               |       |                        |       |                        |       |                      |       |
|                                         |       |                        |       |                        |       |                      |       |
| Realized                                     |       | $                           | 920,020    |                        | $          | 470,354                   |       | $ | 875,524 |   |
| Change in unrealized                         |       | (903,204                    | )          | 477,438                     |       | 1,595,874                 |       |
| Brokerage commissions                        |       | (104,892                    | )          | (26,264                     | )          | (154,431                  | )          |
|                                         |       |                        |       |                        |       |                      |       |
| Total trading profits (losses)               |       | (88,076                     | )          | 921,528                     |       | 2,316,967                 |       |
|                                         |       |                        |       |                        |       |                      |       |
| **INVESTMENT  INCOME:**                      |       |                        |       |                        |       |                      |       |
| Interest                                     |       | 689,806                     |       | 88,248                      |       | 1,058,711                 |       |
|                                         |       |                        |       |                        |       |                      |       |
| **EXPENSES:**                                |       |                        |       |                        |       |                      |       |
| Management fee                               |       | 314,102                     |       | 68,775                      |       | 500,796                   |       |
| Sponsor’s fee                           |       | 278,718                     |       | 40,925                      |       | 446,486                   |       |
| Performance fee                              |       | 17,749                      |       | 181,562                     |       | 527,054                   |       |
| Other                                        |       | 192,561                     |       | 28,049                      |       | 229,601                   |       |
|                                         |       |                        |       |                        |       |                      |       |
| Total expenses                               |       | 803,130                     |       | 319,311                     |       | 1,703,937                 |       |
|                                         |       |                        |       |                        |       |                      |       |
| **NET  INVESTMENT LOSS**                     |       | (113,324                    | )          | (231,063                    | )          | (645,226                  | )          |
|                                         |       |                        |       |                        |       |                      |       |
| **NET  INCOME (LOSS)**                       |       | $                           | (201,400   | )                           | $          | 690,465                   |       | $ | 1,671,741 |   |
|                                         |       |                        |       |                        |       |                      |       |
| **NET  INCOME (LOSS) PER UNIT:**             |       |                        |       |                        |       |                      |       |
| ** **                                   |       |                        |       |                        |       |                      |       |
| Weighted average number of Units outstanding |       |                        |       |                        |       |                      |       |
| Class A                                      |       | 4,344,235                   |       | 598,933                     |       | 3,439,662                 |       |
| Class C                                      |       | 33,315,712                  |       | 5,847,053                   |       | 26,648,689                |       |
| Class D                                      |       | 9,494,264                   |       | 6,544,805                   |       | 6,284,828                 |       |
| Class I                                      |       | 7,871,193                   |       | 494,517                     |       | 7,224,462                 |       |
|                                         |       |                        |       |                        |       |                      |       |
| Net income (loss) per weighted average Unit  |       |                        |       |                        |       |                      |       |
| Class A                                      |       | $                           | 0.0010     |                        | $          | 0.0508                    |       | $ | 0.0455 |   |
| Class C                                      |       | $                           | (0.0040    | )                           | $          | 0.0568                    |       | $ | 0.0361 |   |
| Class D                                      |       | $                           | (0.0181    | )                           | $          | 0.0453                    |       | $ | 0.0162 |   |
| Class I                                      |       | $                           | 0.0128     |                        | $          | 0.0638                    |       | $ | 0.0625 |   |

 

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(1) commencement ofoperations April 1, 2005

See notes to financialstatements.

3

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ML ASPECT FUTURESACCESS LLC(a Delaware Limited Liability Company)

STATEMENTS OF CHANGES IN MEMBERS’ CAPITALFor the six months ended June 30, 2006 and the three months ended June 30, 2005(unaudited)
| ** **                 | ** ** | **Initial Offering** | ** ** | **Offering Costs** | ** ** | **Subscriptions** | ** ** | **Redemptions** | ** ** | **Net Income** | ** ** | **Members’ Capital  June 30, 2005** | ** ** | **Members’ Capital  December 31, 2005** | ** ** | **Subscriptions** | ** ** | **Redemptions** | ** ** | **Net Income** | ** ** | **Members’ Capital  June 30, 2006** | ** ** |
|----------------------------|------------|---------------------------|------------|-------------------------|------------|-------------------|------------|-----------------|------------|---------------------|------------|---------------------------------------------------------|------------|-------------------------------------------------------------|------------|-------------------|------------|-----------------|------------|---------------------|------------|---------------------------------------------------------|------------|
| Class A                    |       | 500,175                   |       | —                  |       | 215,267           |       | —          |       | —              |       | 715,442                                                 |       | 2,099,133                                                   |       | 4,053,913         |       | (402,920        | )          | —              |       | 5,750,126                                               |       |
| Class C                    |       | 4,195,000                 |       | —                  |       | 3,327,827         |       | (130,000        | )          | —              |       | 7,392,827                                               |       | 15,745,021                                                  |       | 23,928,586        |       | (822,516        | )          | —              |       | 38,851,091                                              |       |
| Class D                    |       | 6,531,336                 |       | —                  |       | 40,407            |       | —          |       | —              |       | 6,571,743                                               |       | 4,742,754                                                   |       | 10,548,305        |       | (4,371,011      | )          | —              |       | 10,920,048                                              |       |
| Class I                    |       | 337,750                   |       | —                  |       | 257,515           |       | (10,000         | )          | —              |       | 585,265                                                 |       | 5,948,484                                                   |       | 2,076,272         |       | —          |       | —              |       | 8,024,756                                               |       |
| Total Members’ Units  |       | 11,564,261                |       | —                  |       | 3,841,016         |       | (140,000        | )          | —              |       | 15,265,277                                              |       | 28,535,392                                                  |       | 40,607,076        |       | (5,596,447      | )          | —              |       | 63,546,021                                              |       |
|                       |       |                      |       |                    |       |              |       |            |       |                |       |                                                    |       |                                                        |       |              |       |            |       |                |       |                                                    |       |
| Class A                    |       | —                    |       | —                  |       | 10,319            |       | —          |       | —              |       | 10,319                                                  |       | 10,319                                                      |       | —            |       | —          |       | —              |       | 10,319                                                  |       |
| Class C                    |       | —                    |       | —                  |       | 10,328            |       | —          |       | —              |       | 10,328                                                  |       | 10,328                                                      |       | —            |       | —          |       | —              |       | 10,328                                                  |       |
| Class D                    |       | —                    |       | —                  |       | —            |       | —          |       | —              |       | —                                                  |       | —                                                      |       | —            |       | —          |       | —              |       | —                                                  |       |
| Class I                    |       | —                    |       | —                  |       | —            |       | —          |       | —              |       | —                                                  |       | —                                                      |       | —            |       | —          |       | —              |       | —                                                  |       |
| Total Sponsor’s Units |       | —                    |       | —                  |       | 20,647            |       | —          |       | —              |       | 20,647                                                  |       | 20,647                                                      |       | —            |       | —          |       | —              |       | 20,647                                                  |       |

 

See notes to financialstatements.

4

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ML ASPECT FUTURESACCESS LLC(a Delaware Limited Liability Company)

STATEMENTS OF CHANGES IN MEMBERS’ CAPITALFor the six months ended June 30, 2006 and the three months ended June 30, 2005(continued)(unaudited)

 

|                               | ** ** | **Initial Offering** | ** ** | **Initial  Offering Costs** | ** ** | **Subscriptions** | ** ** | **Redemptions** | ** ** | **Net Income** | ** ** | **Members’ Capital  June 30, 2005** | ** ** | **Members’ Capital  December 31, 2005** | ** ** | **Subscriptions** | ** ** | **Redemptions** | ** ** | **Net Income** | ** ** | **Members’ Capital  June 30, 2006** | ** ** |
|-------------------------------|------------|---------------------------|------------|----------------------------------|------------|-------------------|------------|-----------------|------------|---------------------|------------|---------------------------------------------------------|------------|-------------------------------------------------------------|------------|-------------------|------------|-----------------|------------|---------------------|------------|---------------------------------------------------------|------------|
| Class A                       |       | $                         | 500,175    |                             | $          | (5,246            | )          | $               | 214,495    |                | $          | —                                                  |       | $                                                           | 29,689     |              | $          | 739,113         |       | $                   | 2,233,102  |                                                    | $          | 4,526,823 |   | $ | (452,978 | ) | $ | 155,965 |   | $ | 6,462,912 |   |
| Class C                       |       | 4,195,000                 |       | (39,432                          | )          | 3,275,948         |       | (130,030        | )          | 331,531             |       | 7,633,017                                               |       | 16,664,400                                                  |       | 26,492,550        |       | (899,944        | )          | 961,646             |       | 43,218,652                                              |       |
| Class D                       |       | 6,531,336                 |       | (15,300                          | )          | 40,794            |       | —          |       | 296,228             |       | 6,853,058                                               |       | 5,186,047                                                   |       | 12,349,023        |       | (4,979,747      | )          | 101,734             |       | 12,657,057                                              |       |
| Class I                       |       | 337,750                   |       | (14,003                          | )          | 250,947           |       | (10,417         | )          | 31,567              |       | 595,844                                                 |       | 6,299,150                                                   |       | 2,282,867         |       | —          |       | 451,247             |       | 9,033,264                                               |       |
| Total Members’ Interests |       | $                         | 11,564,261 |                             | $          | (73,981           | )          | $               | 3,782,184  |                | $          | (140,447                                                | )          | $                                                           | 689,015    |              | $          | 15,821,032      |       | $                   | 30,382,699 |                                                    | $          | 45,651,263 |   | $ | (6,332,669 | ) | $ | 1,670,592 |   | $ | 71,371,885 |   |
|                          |       |                      |       |                             |       |              |       |            |       |                |       |                                                    |       |                                                        |       |              |       |            |       |                |       |                                                    |       |
| Class A                       |       | $                         | —     |                             | $          | —            |       | $               | 9,999      |                | $          | —                                                  |       | $                                                           | 734        |              | $          | 10,733          |       | $                   | 11,001     |                                                    | $          | — |   | $ | — |   | $ | 605 |   | $ | 11,606 |   |
| Class C                       |       | —                    |       | —                           |       | 10,000            |       | —          |       | 716                 |       | 10,716                                                  |       | 10,953                                                      |       | —            |       | —          |       | 544                 |       | 11,497                                                  |       |
| Class D                       |       | —                    |       | —                           |       | —            |       | —          |       | —              |       | —                                                  |       | —                                                      |       | —            |       | —          |       | —              |       | —                                                  |       |
| Class I                       |       | —                    |       | —                           |       | —            |       | —          |       | —              |       | —                                                  |       | —                                                      |       | —            |       | —          |       | —              |       | —                                                  |       |
| Total Sponsor’s Interest |       | $                         | —     |                             | $          | —            |       | $               | 19,999     |                | $          | —                                                  |       | $                                                           | 1,450      |              | $          | 21,449          |       | $                   | 21,954     |                                                    | $          | — |   | $ | — |   | $ | 1,149 |   | $ | 23,103 |   |
| Total Members’ Capital   |       | $                         | 11,564,261 |                             | $          | (73,981           | )          | $               | 3,802,183  |                | $          | (140,447                                                | )          | $                                                           | 690,465    |              | $          | 15,842,481      |       | $                   | 30,404,653 |                                                    | $          | 45,651,263 |   | $ | (6,332,669 | ) | $ | 1,671,741 |   | $ | 71,394,988 |   |

 

See notes to financialstatements.

5

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ML ASPECT FUTURESACCESS LLC(a Delaware Limited 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 Aspect FuturesAccess LLC (the “Fund”) as of June 30, 2006, and the resultsof its operations for the three and six months ended June 30, 2006 and for thethree months ended June 30, 2005, respectively. However, the operating results for the interim periods may not beindicative of the results for the full year. The Fund commenced operations onApril 1, 2005. Therefore, the Statements of Operations and Statements ofChanges in Members’ Capital contain information only for the three month periodended June 30, 2005.

Certain information andfootnote disclosures normally included in annual financial statements preparedin accordance with accounting principles generally accepted in the UnitedStates of America (“US GAAP”) have been omitted.  It is suggested that these financialstatements be read in conjunction with the financial statements and notesthereto 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 offinancial statements in conformity with US GAAP requires management to makeestimates and assumptions that affect the reported amounts of assets andliabilities and disclosure of contingent assets and liabilities at the date ofthe financial statements and the reported amounts of revenues and expensesduring the reporting period.  Actualresults could differ from those estimates.

2.      NETASSET VALUE PER UNIT

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 June 30, 2006 the Net Asset Values of the differentseries of Units are as follows:
|            | ** ** | **Net Asset Value** | ** ** | ** **               | ** ** | **Net Asset Value per Unit** | ** ** |
|------------|------------|-------------------------------|------------|--------------------------|------------|--------------------------------------------------|------------|
| ** ** | ** ** | **All Other  Purposes**  | ** ** | **Financial  Reporting** | ** ** | **Number of  Shares**                       | ** ** | **All Other  Purposes** | ** ** | **Financial  Reporting** | ** ** |
| Class A    |       | $                             | 6,478,212  |                     | $          | 6,474,518                                        |       | 5,760,445 |   | $ | 1.1246 |   | $ | 1.1240 |   |
| Class C    |       | 43,257,478                    |       | 43,230,149               |       | 38,861,419                                       |       | $ | 1.1131 |   | $ | 1.1124 |   |
| Class D    |       | 12,665,754                    |       | 12,657,057               |       | 10,920,048                                       |       | $ | 1.1599 |   | $ | 1.1591 |   |
| Class I    |       | 9,044,239                     |       | 9,033,264                |       | 8,024,756                                        |       | $ | 1.1270 |   | $ | 1.1257 |   |
|       |       | $                             | 71,445,683 |                     | $          | 71,394,988                                       |       | 63,566,668 |   |   |   |   |   |

 

6

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At December 31,2005 the Net Asset Values of the different series of Units are as follows:
|            | ** ** | **Net Asset Value** | ** ** | ** **               | ** ** | **Net Asset Value per Unit** | ** ** |
|------------|------------|-------------------------------|------------|--------------------------|------------|--------------------------------------------------|------------|
| ** ** | ** ** | **All Other  Purposes**  | ** ** | **Financial  Reporting** | ** ** | **Number of  Units**                        | ** ** | **All Other  Purposes** | ** ** | **Financial  Reporting** | ** ** |
| Class A    |       | $                             | 2,248,584  |                     | $          | 2,244,103                                        |       | 2,109,452 |   | $ | 1.0660 |   | $ | 1.0638 |   |
| Class C    |       | $                             | 16,708,648 |                     | $          | 16,675,353                                       |       | 15,755,349 |   | $ | 1.0605 |   | $ | 1.0584 |   |
| Class D    |       | $                             | 5,196,400  |                     | $          | 5,186,047                                        |       | 4,742,754 |   | $ | 1.0957 |   | $ | 1.0935 |   |
| Class I    |       | $                             | 6,311,728  |                     | $          | 6,299,150                                        |       | 5,948,484 |   | $ | 1.0611 |   | $ | 1.0590 |   |
|       |       | $                             | 30,465,360 |                     | $          | 30,404,653                                       |       | 28,556,039 |   |   |   |   |   |

 

3.      FAIRVALUE AND OFF-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 Aspect Capital Limited (“Aspect”), thetrading advisor, calculating the Net Asset Value of the Fund as of the close ofbusiness 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 Aspect 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 Aspect itself.

7

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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 to loss in the event of a default, aregenerally required in exchange trading, and counterparties may also requiremargin in the over-the-counter markets.

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 itsnormal course of business, enters into various contracts, with Merrill LynchPierce Fenner & Smith Inc. (“MLPF&S”) acting as its commoditybroker.  Pursuant to the brokeragearrangement with MLPF&S (which includes a netting arrangement), to theextent that such trading results in receivables from and payables toMLPF&S, these receivables and payables are offset and reported as a netreceivable or payable and included in equity from commodity futures tradingaccounts in the Statements of Financial Condition.

8

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Item2:            Management’sDiscussion and Analysis of Financial Condition and Results of Operations

MONTH-END NETASSET VALUE PER UNIT (1)

(NON US GAAP)

Class A

|      | ** ** | **Jan.** | ** ** | **Feb.** | ** ** | **Mar.** | ** ** | **Apr.** | ** ** | **May** | ** ** | **Jun.** | ** ** |
|------|------------|----------|------------|----------|------------|----------|------------|----------|------------|---------|------------|----------|------------|
| 2005 |       | n/a      |       | n/a      |       | n/a      |       | $        | 0.9690     |    | $          | 1.0071   |       | $ | 1.0401 |   |
| 2006 |       | $        | 1.0832     |     | $          | 1.0733   |       | $        | 1.1176     |    | $          | 1.1701   |       | $ | 1.1235 |   | $ | 1.1246 |   |
|      |            |          |            |          |            |          |            |          |            |         |            |          |            |  |  |  |  |  |  |

 

Class C

|      | ** ** | **Jan.** | ** ** | **Feb.** | ** ** | **Mar.** | ** ** | **Apr.** | ** ** | **May** | ** ** | **Jun.** | ** ** |
|------|------------|----------|------------|----------|------------|----------|------------|----------|------------|---------|------------|----------|------------|
| 2005 |       | n/a      |       | n/a      |       | n/a      |       | $        | 0.9682     |    | $          | 1.0054   |       | $ | 1.0376 |   |
| 2006 |       | $        | 1.0768     |     | $          | 1.0662   |       | $        | 1.1093     |    | $          | 1.1595   |       | $ | 1.1115 |   | $ | 1.1131 |   |
|      |            |          |            |          |            |          |            |          |            |         |            |          |            |  |  |  |  |  |  |

 

Class D

|      | ** ** | **Jan.** | ** ** | **Feb.** | ** ** | **Mar.** | ** ** | **Apr.** | ** ** | **May** | ** ** | **Jun.** | ** ** |
|------|------------|----------|------------|----------|------------|----------|------------|----------|------------|---------|------------|----------|------------|
| 2005 |       | n/a      |       | n/a      |       | n/a      |       | $        | 0.9702     |    | $          | 1.0096   |       | $ | 1.0447 |   |
| 2006 |       | $        | 1.1148     |     | $          | 1.1086   |       | $        | 1.1563     |    | $          | 1.2076   |       | $ | 1.1546 |   | $ | 1.1599 |   |
|      |            |          |            |          |            |          |            |          |            |         |            |          |            |  |  |  |  |  |  |

 

Class I

|      | ** ** | **Jan.** | ** ** | **Feb.** | ** ** | **Mar.** | ** ** | **Apr.** | ** ** | **May** | ** ** | **Jun.** | ** ** |
|------|------------|----------|------------|----------|------------|----------|------------|----------|------------|---------|------------|----------|------------|
| 2005 |       | n/a      |       | n/a      |       | n/a      |       | $        | 0.9693     |    | $          | 1.0078   |       | $ | 1.0417 |   |
| 2006 |       | $        | 1.0786     |     | $          | 1.0690   |       | $        | 1.1139     |    | $          | 1.1664   |       | $ | 1.1231 |   | $ | 1.1270 |   |
|      |            |          |            |          |            |          |            |          |            |         |            |          |            |  |  |  |  |  |  |

 

----

(1) Represents Net Asset Value per unit for all otherpurposes as discussed in Note 2 to the Financial Statements.

Performance Summary

January 1, 2006 to June 30, 2006

January 1, 2006 to March 31, 2006

The Fund posted anoverall gain for the quarter with stock indices, metals and interest ratesectors posted gains while agricultural, currencies, and energy sectors postedlosses.

Stock indices werethe most profitable for the Fund. Stock indices continued their recent rally tothe benefit of the Fund, despite a sharp correction the beginning of the firstquarter following the Japanese Livedoor scandal. U.S. and global indicesreacted to strong mid-and small-cap U.S. corporate results, and sentimentregarding the rate cycle, while Europe was lifted by large cap merger activityand high commodity prices. The quarter ended with most major stock marketsstill experiencing an uptrend, driven by continued optimistic sentiment aroundthe markets.

The metals sectorwas also profitable for this Fund. Strong profits came from metals as bullishtrends continued through the beginning of the first quarter. Prices were drivenhigher by global industrial growth set against producers’ capacity problems.Aluminum had large gains as smelters closed in China and Switzerland, whilezinc was helped on its way by decreasing inventories and South American labordisputes. Metal prices continued to rise through the end of the quarter drivenby increasingly strong demand which benefited the Fund’s long positions.

9

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The interest ratesector posted gains for the Fund. The beginning of the quarter found the bestsingle market was in the interest rates sector, where the short in theEurodollar profited from market expectations of further U.S. rate hikes.

The currencysector posted a loss for this Fund. Bonds contributed a loss to the Fund, withtheir recent meager rally extinguished by a sharp correction in the beginningof the quarter sparked by a strong German business confidence survey, a closingof European/U.S. interest rate differentials and a second month of Japaneseprice increases. However, the Fund profited mid-quarter from the weakeningSwedish krona after bearish Swedish inflation figures, and from thestrengthening U.S. dollar. The Japanese yen presented problems, however, as itstrengthened amid speculation that Japanese rates might be raised sooner thanexpected.  The quarter ended with bondsposting profits for the Fund, due to profits from the short position inJapanese ten year bonds. The Bank of Japan’s decision on March 9, 2006 to dropits policy of “quantitative easing” caused yields to rise sharply. Profits werealso posted from the program’s short position in the Euribor. The fall in pricewas triggered by various data releases fuelling expectations of further ratehikes from the European Central Bank.

The agriculturalsector posted losses for the Fund. The agricultural market was soft whichattributed to the difficult trading environment resulting in the sector postinglosses for the Fund.

The energy sectorwas the least profitable for the Fund. Long positions in crude oil sufferedheavily early in mid-quarter wherein the price dropped by nearly U.S. $10/bblamid bountiful inventory figures, before recovering somewhat following violencein Nigeria and an attempted refinery bombing in Saudi Arabia. However, theshort positions in natural gas produced good returns as the price continued it’sstrong downwards trend, despite the short cold snap in North America. Thequarter ended with a disappointment to the Fund, wherein short positions inunleaded gasoline and crude oil were affected by geopolitical concerns drivingprices higher.

April 1, 2006 to June 30, 2006

The Fund posted an overall loss for the quarter withinterest rates and metal sectors posting gains while energy, currencies,agriculture and stock indices sectors posted losses.

The interest rate sector was the most profitable forthe Fund. Bonds continued to profit from its short positions as the globaleconomy remained in an environment of rising short-term interest rates. Shortpositions in the U.K. ten year gilt were the best single market performers forthe Fund. There were losses from short positions in bonds mid-quarter, however,interest rates proved profitable as the Federal Reserve’s focus on inflationbecame important. The quarter ended with the best single market in the interestrates sector, where the short in the Eurodollar profited from marketparticipants’ focusing their attention on the central banks announcements andcommentaries on inflation.

The metals sector was also profitable for this Fund.Strong profits came from metals as bullish trends continued through the middleof the second quarter. Several metals hit record highs at the beginning of thequarter as robust Chinese economic growth further increased global demand.Profits were also generated for the Fund mid-quarter contrary to the highlyvolatile price action. Prices started to fall again at the end of the quarterdue to the Fund’s reduced, but remaining long positions.

The energy sector posted losses for the Fund. Modestgains were posted to the Fund beginning of the quarter only to fall midquarter. Equity markets corrected sharply amid concerns over rising inflationand speculation that the long bull market might be coming to an end. The Fund’slong positions suffered as a result, especially in the highlycommodity-influenced FTSE 100 as energies and metals markets also fell sharply.Energy markets proved difficult for the Fund, with the worst loss in crude oil.However, the quarter ended posting gains for the Fund from long positions incrude oil and short positions in natural gas.

10

----

The currency sector posted losses for the Fund. Longpositions in the U.S. dollar contributed a loss to the Fund at the beginning ofthe quarter due to the weakening of the U.S. dollar to other currencies. Aturbulent period in the markets mid-quarter resulted in most sectors witnessingsharp reversals, which hurt established positions. Short position in theEurodollar did post a slight gain for the Fund at quarter’s end however, it wasnot enough to offset the losses.

The agricultural sector posted losses for the Fund.The agricultural market was soft which attributed to the difficult tradingenvironment resulting in the sector posting losses for the Fund. The worstsingle performance at quarter’s end came from cocoa futures which was a sharpreversal in June after two bearish months, affecting the Fund’s shortpositions.

Stock indices were the least profitable for the Fund.Modest gains were posted at the beginning of the quarter only to have sharpreversals mid quarter which hurt established positions.  The Fund’s losses in stock indices werelimited at quarter’s end as long positions were largely reduced, quicklyadapting to the current market environment.

April 1, 2005 to June 30, 2005

The Fund posted anoverall gain for the quarter after incurring losses early on.   The interest rate sector posted the majorityof the profits, followed by the currency and stock indices sectors.  Losses were posted in the metals,agriculture, and energy sectors.

Trading in interest rates was profitable throughoutthe quarter.  Short term interest rateswere profitable as speculation that the next move in U.K. interest rates couldbe downwards.  The Riskbank cut interestrates as well.  Speculation that the U.K.will likely cut interest rates before the end of the year continued.

The currency sector posted gains despite losses earlyon.  Currency markets were dominated bythe strengthening U.S. dollar and the Euro falling to seven month lows afterthe French rejected the European constitution. The currency markets were the most profitable towards the end of thequarter.

Trading in stock indices was also profitable for theFund.  Trading in stock indices was turbulentin the beginning of the quarter as the sharp mid-month falls triggered by theAsian indices impacted performance. Mid-quarter global markets recovered and stock indices were a source ofprofit.  The quarter ended with gains asEuropean and Asian markets enjoyed a good month.

Losses were posted in the metals sector throughout themonth.  Base metal markets suffered asharp drop after copper reached new highs, hurting the long positions held inthe Fund.

Trading in agricultural commodities posted losses forthe Fund. Trading in soft agricultural markets attributed to these losses.

The largest losses were posted in the energysector.  Trading in energies wasdifficult as crude fell back from its highs, but remained volatile amidspeculation about refinery capacity issues. The downward trend in natural gascontinued throughout the quarter.

11

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Item 3.   Quantitative and Qualitative DisclosuresAbout Market Risk

Not applicable

Item4. Controls and Procedures

MLAI, the Sponsorof ML Aspect 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

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PART II - OTHER INFORMATION
| Item 1. |   | Legal Proceedings |
|---------|--------|-------------------|

 

Neither the Fund nor MLAI has ever been thesubject of any material litigation. Merrill Lynch is the 100% indirect owner of MLAI, MLPF&S and allother Merrill Lynch entities involved in the operations of the Fund. MerrillLynch as well as certain of its subsidiaries and affiliates have been named asdefendants in civil actions, arbitration proceedings and claims arising out oftheir respective business activities. Although the ultimate outcome of theseactions cannot be predicted at this time and the results of legal proceedingscannot be predicted with certainty, it is the opinion of management that theresult of these matters will not be materially adverse to the businessoperations 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 |       | $                        | 193,045    |      | 181,093    |       | $          | 1.0660 |   |
| Feb-06 |       | 276,896                  |       | 255,628   |       | 1.0832     |       |
| Mar-06 |       | 629,668                  |       | 586,665   |       | 1.0733     |       |
| Apr-06 |       | 666,891                  |       | 596,717   |       | 1.1176     |       |
| May-06 |       | 651,288                  |       | 556,609   |       | 1.1701     |       |
| Jun-06 |       | 2,109,035                |       | 1,877,201 |       | 1.1235     |       |
| Jul-06 |       | 1,533,088                |       | 1,363,230 |       | 1.1246     |       |
|        |            |                          |            |           |            |            |            |  |  |

 

CLASS C

 
|        | ** ** | **Subscription  Amount** | ** ** | **Units** | ** ** | **NAV(1)** | ** ** |
|--------|------------|--------------------------|------------|-----------|------------|------------|------------|
| Jan-06 |       | $                        | 2,522,952  |      | 2,379,021  |       | $          | 1.0605 |   |
| Feb-06 |       | 1,581,956                |       | 1,469,127 |       | 1.0768     |       |
| Mar-06 |       | 4,424,936                |       | 4,150,193 |       | 1.0662     |       |
| Apr-06 |       | 5,220,884                |       | 4,706,467 |       | 1.1093     |       |
| May-06 |       | 6,439,891                |       | 5,554,024 |       | 1.1595     |       |
| Jun-06 |       | 6,301,931                |       | 5,669,754 |       | 1.1115     |       |
| Jul-06 |       | 9,734,819                |       | 8,745,682 |       | 1.1131     |       |
|        |            |                          |            |           |            |            |            |  |  |

 

CLASS D

 
|        | ** ** | **Subscription  Amount** | ** ** | **Units** | ** ** | **NAV(1)** | ** ** |
|--------|------------|--------------------------|------------|-----------|------------|------------|------------|
| Jan-06 |       | $                        | 1,079,998  |      | 985,670    |       | $          | 1.0957 |   |
| Feb-06 |       | —                   |       | —    |       | 1.1148     |       |
| Mar-06 |       | —                   |       | —    |       | 1.1562     |       |
| Apr-06 |       | 6,196,498                |       | 5,358,902 |       | 1.1563     |       |
| May-06 |       | 4,987,527                |       | 4,130,115 |       | 1.2076     |       |
| Jun-06 |       | 85,000                   |       | 73,618    |       | 1.1546     |       |
| Jul-06 |       | 1,166,147                |       | 1,005,386 |       | 1.1599     |       |
|        |            |                          |            |           |            |            |            |  |  |

 

CLASS I

 
|        | ** ** | **Subscription  Amount** | ** ** | **Units** | ** ** | **NAV(1)** | ** ** |
|--------|------------|--------------------------|------------|-----------|------------|------------|------------|
| Jan-06 |       | $                        | 70,998     |      | 66,910     |       | $          | 1.0611 |   |
| Feb-06 |       | 867,997                  |       | 804,744   |       | 1.0786     |       |
| Mar-06 |       | 82,872                   |       | 77,523    |       | 1.0690     |       |
| Apr-06 |       | 959,261                  |       | 861,173   |       | 1.1139     |       |
| May-06 |       | 82,996                   |       | 71,156    |       | 1.1664     |       |
| Jun-06 |       | 218,743                  |       | 194,766   |       | 1.1231     |       |
| Jul-06 |       | 1,165,493                |       | 1,034,155 |       | 1.1270     |       |
|        |            |                          |            |           |            |            |            |  |  |

 

----

(1)Net Asset Value for all other purposes
| Item 6. | Exhibits                                                                                                           |
|---------|--------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                               |
|    | The following exhibits are incorporated by reference  or are filed herewith to this Quarterly Report on Form 10-Q: |
|    |                                                                                                               |
|    | 31.01 and                                                                                                          |   |
|    | 31.02                                                                                                              | Rule 13a-14(a)/15d-14(a) Certifications |
|    |                                                                                                               |   |
|    | Exhibit 31.01                                                                                                      |
|    | and 31.02:                                                                                                         | Are filed herewith. |
|    |                                                                                                               |   |
|    | 32.01 and                                                                                                          |   |
|    | 32.02                                                                                                              | Section 1350 Certifications |
|    |                                                                                                               |   |
|    | Exhibit 32.01                                                                                                      |
|    | and 32.02                                                                                                          | Are filed herewith. |

 

14

----

**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 ASPECT FUTURESACCESS LLC |
|-----------------------|-----------------------------|
|                  |                        |   |
|                  |                        |   |
|                  | By:                         | MERRILL LYNCH ALTERNATIVE |
|                  |                        | INVESTMENTS LLC |
|                  |                        | (General  Partner) |
|                  |                        |   |
|                  |                        |   |
| Date: August 14, 2006 | By                          | /s/ BENJAMIN WESTON |   |
|                  |                        | Benjamin Weston |
|                  |                        | Chief Executive Officer and President |
|                  |                        | (Principal Executive Officer) |
|                  |                        |   |
|                  |                        |   |
| Date: August 14, 2006 |                        |   |
|                  | By                          | /s/ MICHAEL L. PUNGELLO |   |
|                  |                        | Michael L. Pungello |
|                  |                        | Vice President and Chief Financial Officer |
|                  |                        | (Principal Financial and Accounting Officer) |
|                       |                             |  |  |  |  |

 

15

----