Aspect FuturesAccess 10-Q 2007 Q1 Quarterly report

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 March 31, 2007

OR

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

For the transition period from                  to

Commission File Number 0-51085

ML ASPECT FUTURESACCESS LLC

(Exact Name of Registrant as specified in its charter)

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

c/o Merrill Lynch Alternative Investments LLC

Princeton Corporate Campus

800 Scudders Mill Road -  Section 2G

Plainsboro, 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) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter 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 whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer.  See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer o  Accelerated filer o     Non-accelerated filer x

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

Yes o     No x

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.

Yes o     No o

ML ASPECT FUTURESACCESS LLC

QUARTERLY REPORT FOR MARCH 31, 2007 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	11
Item 4.	Controls and Procedures	14
PART II
Item 1.	Legal Proceedings	15
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	16
Item 3.	Defaults Upon Senior Securities	16
Item 4.	Submission of Matters to a Vote of Security Holders	16
Item 5.	Other Information	16
Item 6	Exhibits and Reports on Form 8-K	17

PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

ML ASPECT FUTURESACCESS LLC

(a Delaware Limited Liability Company)

STATEMENTS OF FINANCIAL CONDITION

	March 31, 2007 (unaudited)		December 31, 2006
ASSETS:
Equity in commodity futures trading accounts:
Cash (including restricted cash of $26,531,037 for 2007 and $34,158,049 for 2006)	$	125,590,907	$	116,217,072
Net unrealized profit on open contracts	2,469,971		5,510,770
Cash	192,294		290,435
Accrued interest	544,135		474,361
TOTAL ASSETS	$	128,797,307	$	122,492,638
LIABILITIES AND MEMBERS’ CAPITAL:
LIABILITIES:
Brokerage commissions payable	$	45,287	$	44,275
Management fee payable	213,978		203,118
Sponsor fee payable	198,290		186,736
Performance fee payable	—		1,416,045
Redemptions payable	1,994,347		808,617
Initial offering costs payable	28,197		31,196
Other	364,917		325,731
Total liabilities	2,845,016		3,015,718
MEMBERS’ CAPITAL:
Sponsor’s Interest (20,647 Units and 20,647 Units)	22,798		23,905
Members’ Interest (113,626,583 Units and 102,762,880 Units)	125,929,493		119,453,015
Total members’ capital	125,952,291		119,476,920
TOTAL LIABILITIES AND MEMBERS’ CAPITAL	$	128,797,307	$	122,492,638

NET ASSET VALUE PER UNIT (Note 2)

(Based on 113,647,230 and 102,783,527 units outstanding. Unlimited units authorized)

See notes to financial statements.

2

ML ASPECT FUTURESACCESS LLC

(a Delaware Limited Liability Company)

STATEMENTS OF OPERATIONS

(unaudited)

	For the three			For the three
	months ended			months ended
	March 31,			March 31,
	2007			2006
TRADING PROFIT (LOSS):
Realized	$	(3,125,951	)	$	(44,496	)
Change in unrealized	(3,040,799		)	2,499,078
Brokerage commissions	(140,885		)	(49,539		)
Total trading profit (loss)	(6,307,635		)	2,405,043
INVESTMENT INCOME:
Interest	1,613,074			368,905
EXPENSES:
Management fee	637,807			186,694
Sponsor fee	589,041			167,768
Performance fee	—			509,305
Other	137,429			37,040
Total expenses	1,364,277			900,807
NET INVESTMENT INCOME (LOSS)	248,797			(531,902		)
NET INCOME (LOSS)	$	(6,058,838	)	$	1,873,141
NET INCOME (LOSS) PER UNIT:
Weighted average number of Units outstanding
Class A	16,111,013			2,535,090
Class C	67,952,141			19,981,665
Class D	14,730,822			3,075,392
Class I	12,495,885			6,577,731
Net income (loss) per weighted average Unit
Class A	$	(0.0546	)	$	0.0601
Class C	$	(0.0557	)	$	0.0549
Class D	$	(0.0504	)	$	0.0889
Class I	$	(0.0520	)	$	0.0533

See notes to financial statements.

3

ML ASPECT FUTURESACCESS LLC

(a Delaware Limited Liability Company)

STATEMENTS OF CHANGES IN MEMBERS’ CAPITAL

For the three months ended March 31, 2007 and 2006 

(unaudited)

	Members’ Capital December 31, 2005	Subscriptions	Redemptions		Members’ Capital March 31, 2006	Members’ Capital December 31, 2006	Subscriptions	Redemptions		Members’ Capital March 31, 2007
Class A	2,099,133	1,023,386	(305,786	)	2,816,733	13,798,588	2,941,588	(157,626	)	16,582,550
Class C	15,745,021	7,998,341	(594,503	)	23,148,859	63,313,746	8,161,048	(1,054,073	)	70,420,721
Class D	4,742,754	985,670	(4,371,011	)	1,357,413	13,531,909	1,397,960	(1,330,000	)	13,599,869
Class I	5,948,484	949,177	—		6,897,661	12,118,637	939,806	(35,000	)	13,023,443
Total Members’ Units	28,535,392	10,956,574	(5,271,300	)	34,220,666	102,762,880	13,440,402	(2,576,699	)	113,626,583
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 financial statements.

4

ML ASPECT FUTURESACCESS LLC

(a Delaware Limited Liability Company)

STATEMENTS OF CHANGES IN MEMBERS’ CAPITAL

For the three months ended March 31, 2007 and 2006

(unaudited)

	Members’ Capital December 31, 2005		Subscriptions		Redemptions			Net Income		Members’ Capital March 31, 2006		Members’ Capital December 31, 2006		Subscriptions		Redemptions			Net Loss			Members’ Capital March 31, 2007
Class A	$	2,233,102	$	1,099,609	$	(340,740	)	$	151,815	$	3,143,786	$	16,089,634	$	3,430,444	$	(179,765	)	$	(879,118	)	$	18,461,195
Class C	16,664,400		8,529,844		(642,349		)	1,096,446		25,648,341		72,750,991		9,296,488		(1,189,828		)	(3,787,177		)	77,070,474
Class D	5,186,047		1,079,998		(4,979,748		)	273,326		1,559,623		16,414,106		1,686,999		(1,546,923		)	(741,948		)	15,812,234
Class I	6,299,150		1,021,867		—			350,517		7,671,534		14,198,284		1,076,015		(39,221		)	(649,488		)	14,585,590
Total Members’ Interests	$	30,382,699	$	11,731,318	$	(5,962,837	)	$	1,872,104	$	38,023,284	$	119,453,015	$	15,489,946	$	(2,955,737	)	$	(6,057,731	)	$	125,929,493
Class A	$	11,001	$	—	$	—		$	533	$	11,534	$	12,035	$	—	$	—		$	(542	)	$	11,493
Class C	10,953		—		—			504		11,457		11,870		—		—			(565		)	11,305
Class D	—		—		—			—		—		—		—		—			—			—
Class I	—		—		—			—		—		—		—		—			—			—
Total Sponsor’s Interest	$	21,954	$	—	$	—		$	1,037	$	22,991	$	23,905	$	—	$	—		$	(1,107	)	$	22,798
Total Members’ Capital	$	30,404,653	$	11,731,318	$	(5,962,837	)	$	1,873,141	$	38,046,275	$	119,476,920	$	15,489,946	$	(2,955,737	)	$	(6,058,838	)	$	125,952,291

See notes to financial statements.

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ML ASPECT FUTURESACCESS LLC

(a Delaware Limited Liability Company)

NOTES TO FINANCIAL STATEMENTS

(unaudited)

1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

In the opinion of management, the financial statements contain all adjustments necessary to present fairly the financial position of ML Aspect FuturesAccess LLC (the “Fund”) as of March 31, 2007, and the results of its operations for the three months ended March 31, 2007 and 2006.  However, the operating results for the interim periods may not be indicative of the results for the full year.

Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) have been omitted.  It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto included in the Fund’s Annual Report on Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2006.

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

2.NET ASSET VALUE PER UNIT

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

At March 31, 2007 the Net Asset Values of the different Classes 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	$	18,473,955	$	18,472,687	16,592,869	$	1.1134	$	1.1133
Class C	77,094,889		77,081,780		70,431,049	$	1.0946	$	1.0944
Class D	15,817,695		15,812,234		13,599,869	$	1.1631	$	1.1627
Class I	14,593,949		14,585,590		13,023,443	$	1.1206	$	1.1199
	$	125,980,488	$	125,952,290	113,647,230

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At December 31, 2006 the Net Asset Values of the different Classes 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	$	16,103,372	$	16,101,669	13,808,907	$	1.1662	$	1.1660
Class C	72,777,781		72,762,861		63,324,074	$	1.1493	$	1.1491
Class D	16,419,981		16,414,107		13,531,909	$	1.2134	$	1.2130
Class I	14,206,983		14,198,283		12,118,637	$	1.1723	$	1.1716
	$	119,508,117	$	119,476,920	102,783,527

3.MARKET AND CREDIT RISK

The nature of this Fund has certain risks, which cannot be presented on the financial statements.  The following summarizes some of those risks.

Market Risk

Derivative instruments involve varying degrees of market risk.  Changes in the level or volatility of interest rates, foreign currency exchange rates or the market values of the financial instruments or commodities underlying such derivative instruments frequently result in changes in the Fund’s Net unrealized profit on such derivative instruments as reflected in the Statements of Financial Condition. The Fund’s exposure to market risk is influenced by a number of factors, including the relationships among the derivative instruments held by the Fund as well as the volatility and liquidity of the markets in which the derivative instruments are traded. Investment in foreign markets may also entail legal and political risks.

The Sponsor of the Fund, Merrill Lynch Alternative Investments LLC (“MLAI”), has procedures in place intended to control market risk exposure, although there can be no assurance that they will, in fact, succeed in doing so.  These procedures focus primarily on monitoring the trading of Aspect Capital Management Limited (“Aspect”), calculating the Net Asset Value of the Fund as of the close of business on each day and reviewing outstanding positions for over-concentrations.  While MLAI does not intervene in the markets to hedge or diversify the Fund’s market exposure, MLAI may urge Aspect to reallocate positions in an attempt to avoid over-concentrations.  However, such interventions are expected to be unusual.  It is expected that MLAI’s basic risk control procedures will consist simply of the ongoing process of advisor monitoring, with the market risk controls being applied by Aspect.

Credit Risk

The risks associated with exchange-traded contracts are typically perceived to be less than those associated with over-the-counter (non-exchange-traded) transactions, because exchanges typically provide clearinghouse arrangements in which the collective credit (in some cases limited in amount, in some cases not) of the members of the exchange is pledged to support the financial integrity of the exchange.  In over-the-counter transactions, on the other hand, traders must rely solely on the credit of their respective individual counterparties.  Margins, which may be subject to loss in the event of a default, are generally required in exchange trading, and counterparties may also require margin in the over-the-counter markets.

The credit risk associated with these instruments from counterparty nonperformance is the Net unrealized profit (loss), if any, included in the Statements of Financial Condition. The Fund attempts

7

to mitigate this risk by dealing exclusively with Merrill Lynch & Co., Inc. (“Merrill Lynch”) entities as clearing brokers.

The Fund, in its normal course of business, enters into various contracts, with Merrill Lynch Pierce Fenner & Smith Inc. (“MLPF&S”) acting as its commodity broker.  Pursuant to the brokerage arrangement with MLPF&S (which includes a netting arrangement), to the extent that such trading results in receivables from and payables to MLPF&S, these receivables and payables are offset and reported as a net receivable or payable and included in Equity in commodity futures trading accounts in the Statements of Financial Condition.

3.RECENT ACCOUNTING PRONOUNCEMENTS

In July 2006, the Financial Accounting Standards Board (“FASB”) issued Interpretation No. 48 (“FIN 48”), Accounting for Uncertainty in Income Taxes — an interpretation of FASB Statement No. 109. FIN 48 prescribes the minimum recognition threshold a tax position must meet in connection with accounting for uncertainties in income tax positions taken or expected to be taken by an entity before being measured and recognized in the financial statements. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006. The Fund has evaluated its tax positions and has determined that the implementation of this pronouncement does not have a material impact on the Fund’s financial statements.

In September 2006, the FASB issued Statement of Financial Accounting Standards No. 157, Fair Value Measurements (“FAS 157”).  FAS 157 establishes a common definition for fair value under accounting principles generally accepted in the United States of America, establishes a framework for measuring fair value and expands disclosure requirements about such fair value measurements.  FAS 157 is effective for fiscal years beginning after November 15, 2007.  The Fund is currently evaluating the impact of adopting FAS 157 on its financial statements.

8

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

MONTH-END NET ASSET VALUE PER UNIT

(NON US GAAP)

MLAI believes that the Net Asset Value used to calculate subscription and redemption value and to report performance to investors throughout the year is the most valuable to the Members of the Fund.  Therefore, the charts below referencing Net Asset Value and performance measurements are based on the Net Asset Value for all other purposes, as discussed in Note 2 to the financial statements.

Class A

	Jan.		Feb.		Mar.
2006	$	1.0832	$	1.0733	$	1.1176
2007	$	1.1952	$	1.1332	$	1.1134

Class C

	Jan.		Feb.		Mar.
2006	$	1.0768	$	1.0662	$	1.1093
2007	$	1.1769	$	1.1150	$	1.0946

Class D

	Jan.		Feb.		Mar.
2006	$	1.1148	$	1.1086	$	1.1563
2007	$	1.2452	$	1.1823	$	1.1631

Class I

	Jan.		Feb.		Mar.
2006	$	1.0786	$	1.0690	$	1.1139
2007	$	1.2019	$	1.1402	$	1.1206

Performance Summary

January 1, 2007 to March 31, 2007

The Fund posted an overall loss for the quarter with the agriculture sector posting gains and currencies, metals, stock indices, interest rate and the energy sectors posted losses.

The agricultural sector was the only profitable sector for the Fund. The agricultural market was soft which attributed to the difficult trading environment resulting with gains in the mid-quarter only. Losses were posted at the beginning of the quarter and at the end as the price reversal in corn was a key element of the losses in the sector.

The currency sector was not profitable for the Fund.  The quarter began with gains due to the short positions which captured the sell off in the U.K. gilts and the British pound following the Bank of England’s surprise decision to raise core interest rates. The U.S. dollar/Japanese yen cross-rate drove returns as the long positions in the U.S. dollar strengthened following the U.S. economic data releases and the lack of rate hikes by the Bank of Japan. In the wake of increased market volatility mid-quarter, the Japanese yen strengthened against the major currencies as investors liquidated their Japanese yen carry trade positions. This caused losses due to the short positions in the Japanese yen. However, the quarter ended with currencies posting gains as the short positions in Euribor and the British pound were profitable as prices fell, helped by stronger than expected economic data releases in the United Kingdom

9

and Eurozone.  Also finishing profitably was the U.S. dollar which depreciated against the other major currencies coupled with weaker than expected data releases and rising concerns about the U.S. sub-prime mortgage market aided gains being posted.

The metals sector posted losses for the Fund. The beginning of the quarter began with losses which carried through mid-quarter due to a sell off of the long positions in copper and zinc. The quarter ended with gains being posted to the Fund.

The stock indices sector posted losses for the Fund. Long Japanese positions posted the best gains as markets rallied on the exporter friendly depreciation of the Japanese yen and a revival in oil prices. Losses posted mid-quarter were due to the reduced long positions in stock indices hurt by the continued fallout from the equity market sell-off at the end of February which continued through to the end of the quarter.

The interest rate sector posted losses for the Fund. The quarter began and ended with gains being posted to the Fund in a volatile market environment. However, these gains could not offset losses posted mid-quarter.

The energy sector was the least profitable for the Fund. Short positions in energies posted gains at the beginning of the quarter for the Fund as oil prices continued to fall, before a mid-month reversal driven by bad weather conditions pared back some of these gains. However, losses were incurred mid-quarter through to the end of quarter as oil prices rallied against the Fund’s short positions driven by mounting geopolitical pressures.

January 1, 2006 to March 31, 2006

The Fund posted an overall gain for the quarter with stock indices, metals and interest rate sectors posted gains while agricultural, currencies, and energy sectors posted losses.

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

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

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

The currency sector posted a loss for this Fund. Bonds contributed a loss to the Fund, with their recent meager rally extinguished by a sharp correction in the beginning of the quarter sparked by a strong German business confidence survey, a closing of European/U.S. interest rate differentials and a second month of Japanese price increases. However, the Fund profited mid-quarter from the weakening Swedish krona after bearish Swedish inflation figures, and from the strengthening U.S. dollar. The Japanese yen presented problems, however, as it strengthened amid speculation that Japanese rates might be raised

10

sooner than expected.  The quarter ended with bonds posting profits for the Fund, due to profits from the short position in Japanese ten year bonds. The Bank of Japan’s decision on March 9, 2006 to drop its policy of “quantitative easing” caused yields to rise sharply. Profits were also posted from the program’s short position in the Euribor. The fall in price was triggered by various data releases fuelling expectations of further rate hikes from the European Central Bank.

The agricultural sector posted losses for the Fund. The agricultural market was soft which attributed to the difficult trading environment resulting in the sector posting losses for the Fund.

The energy sector was the least profitable for the Fund. Long positions in crude oil suffered heavily early in mid-quarter wherein the price dropped by nearly U.S. $10/bbl amid bountiful inventory figures, before recovering somewhat following violence in Nigeria and an attempted refinery bombing in Saudi Arabia. However, the short positions in natural gas produced good returns as the price continued it’s strong downwards trend, despite the short cold snap in North America. The quarter ended with a disappointment to the Fund, wherein short positions in unleaded gasoline and crude oil were affected by geopolitical concerns driving prices higher.

Item 3.   Quantitative and Qualitative Disclosures About Market Risk

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

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

The Fund, under the direction of Aspect, rapidly acquires and liquidates both long and short positions in a wide range of different markets.  Consequently, it is not possible to predict how a particular future market scenario will affect performance, and the Fund’s past performance is not necessarily indicative of its future results.

Value at Risk is a measure of the maximum amount which the Fund could reasonably be expected to lose in a given market sector. However, the inherent uncertainty of the Fund’s speculative trading and the recurrence in the markets traded by the Fund of market movements far exceeding expectations could result in actual trading or non-trading losses far beyond the indicated Value at Risk or the Fund’s experience to date (i.e., “risk of ruin”). In light of the foregoing, as well as the risks and uncertainties intrinsic to all future projections, the quantifications included in this section should not be considered to constitute any assurance or representation that the Fund’s losses in any market sector will be limited to Value at Risk or by the Fund’s attempts to manage its market risk.

Quantifying The Fund’s Trading Value At Risk

Quantitative Forward-Looking Statements

The following quantitative disclosures regarding the Fund’s market risk exposures contain “forward-looking statement” within the meaning of the safe harbor form civil liability provided for such

11

statements by the Private Securities Litigation Reform Act of 1995 (set forth in Section 27Aof the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934).  All quantitative disclosures in this section are deemed to be forward-looking statements for purposes of the safe harbor, except for statements of historical fact.

The Fund’s risk exposure in the various market sectors traded by Aspect is quantified below in terms of Value at Risk.  Due to the Fund’s mark-to-market accounting, any loss in the fair value of the Fund’s open positions is directly reflected in the Fund’s earnings (realized or unrealized) and cash flow (at least in the case of exchange-traded contracts in which profits and losses on open positions are settled daily through variation margin).

Exchange maintenance margin requirements have been used by the Fund as the measure of its Value at Risk.  Maintenance margin requirements are set by exchanges to equal or exceed the maximum loss in the fair value of any given contract incurred in 95%-99% of the one-day time periods included in the historical sample (generally approximately one year) researched for purposes of establishing margin levels.  The maintenance margin levels are established by dealers and exchanges using historical price studies as well as an assessment of current market volatility (including the implied volatility of the options on a given futures contract) and economic fundamentals to provide a probabilistic estimate of the maximum expected near-term one-day price fluctuation.

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

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

12

The Fund’s Trading Value at Risk in Different Market Sectors

The following table indicates the average, highest and lowest trading Value at Risk associated with the Fund’s open positions by market category for the fiscal period. For the three months ended March 31, 2007 and March 31, 2006, the Fund’s average Month-end Net Asset Value for all other purposes was approximately $124,502,361 and $33,913,724 respectively.

	March 31, 2007
	Average		% of Average		Highest Value		Lowest Value
Market Sector	Value at Risk		Capitalization		At Risk		At Risk
Agricultural Commodities	$	172,583	0.14	%	$	257,333	$	120,543
Currencies	217,917		0.18	%	346,635		70,458
Energy	254,191		0.20	%	322,537		142,915
Interest Rates	13,507,563		10.85	%	16,003,049		11,027,335
Metals	138,000		0.11	%	188,690		54,595
Stock Indices	763,488		0.61	%	937,952		434,645
TOTAL	$	15,053,742	12.09	%	$	18,056,196	$	11,850,491

	March 31, 2006
	Average		% of Average		Highest Value		Lowest Value
Market Sector	Value at Risk		Capitalization		At Risk		At Risk
Agricultural Commodities	$	101,629	0.30	%	$	168,050	$	46,817
Currencies	462,434		1.36	%	879,610		180,344
Energy	196,568		0.58	%	405,978		10,048
Interest Rates	3,051,312		9.00	%	5,125,216		1,094,608
Metals	280,883		0.83	%	495,831		112,933
Stock Indices	830,339		2.45	%	1,586,854		285,820
TOTAL	$	4,923,165	14.52	%	$	8,661,539	$	1,730,570

Material Limitations on Value at Risk as an Assessment of Market Risk

The face value of the market sector instruments held by the Fund is typically many times the applicable maintenance margin requirement (maintenance margin requirements generally ranging between approximately 1% and 10% of contract face value) as well as many times the capitalization of the Fund.  The magnitude of the Fund’s open positions creates a “risk of ruin” not typically found in most other investment vehicles.  Because of the size of its positions, certain market conditions — unusual, but historically recurring from time to time — could cause the Fund to incur severe losses over a short period of time.   The foregoing Value at Risk table — as well as the past performance of the Fund — gives no indication of this “risk of ruin.”

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Non-Trading Risk

Foreign Currency Balances; Cash on Deposit with MLPF&S

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

The Fund also has non-trading market risk on the approximately 90%-95% of its assets which are held in cash at MLPF&S. The value of this cash is not interest rate sensitive, but there is cash flow risk in that if interest rates decline so will the cash flow generated on these monies. This cash flow risk is immaterial.

Item 4.   Controls and Procedures

Merrill Lynch Alternative Investments LLC, the Sponsor of ML Aspect FuturesAccess LLC (the “Fund”), with the participation of the Sponsor’s Chief Executive Officer and the Chief Financial Officer, has evaluated the effectiveness of the design and operation of its disclosure controls and procedures with respect to the Fund as of the end of the period of this quarterly report, and, based on this evaluation, has concluded that these disclosure controls and procedures are effective.  Additionally, there were no significant changes in the Fund’s internal controls or in other factors that could significantly affect these controls subsequent to the date of this evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

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PART II - OTHER INFORMATION

Item 1.Legal Proceedings

There have been no administrative, civil or criminal actions, whether pending or concluded, against MLAI or Merrill Lynch or any of its individual principals during the past five years which would be considered “material” as that term is defined in Section 4.24(l)(2) of the Regulations of the CFTC, except as described below.

On May 21, 2002, MLPF&S, with no admission of wrongdoing or liability, agreed to pay $48 million to the State of New York, $50 million to the remaining states, Washington, D.C. & Puerto Rico and $2 million to NASAA relating to an investigation conducted by the New York Attorney General concerning research practices.

On March 19, 2003, Merrill Lynch & Co., Inc., the parent company and an approved person of MLPF&S, consented to an injunctive action instituted by the Securities and Exchange Commission (the “SEC”).  In its complaint, the SEC alleged that three years ago, in 1999, Merrill Lynch aided and abetted Enron Corp.’s (“Enron”) violations of Sections 10(b), 13(a), 13(b)(2) and 13(b)(5) of the Exchange Act and Rules 10b-5, 12b-20, 13a-1, 13a-3 and 13b2-1 thereunder, as a result of Merrill Lynch engaging in certain year-end transactions designed and proposed by Enron.  Without admitting or denying the allegations, Merrill Lynch consented to the entry of an injunction enjoining it from violating the above-referenced provisions, and agreed to pay disgorgement, penalties and interest in the amount of $80 million.  In its release announcing the settlement, the Commission acknowledged that in agreeing to resolve this matter on the terms described above, the Commission took into account certain affirmative conduct by Merrill Lynch.

In April 2003, MLPF&S entered into a settlement with the SEC, the National Association of Securities Dealers (the “NASD”) and the New York Stock Exchange (the “NYSE”) as part of a joint settlement with the SEC, the NASD and the NYSE arising from a joint investigation by the SEC, the NASD and the NYSE into research analysts’ conflicts of interests.  Pursuant to the terms of the settlement with the SEC, NASD and NYSE, MLPF&S, without admitting or denying the allegations, consented to a censure.  In addition, MLPF&S agreed to a payment of (I) $100 million, which was offset in its entirety by the amount already paid by MLPF&S in the related proceeding with the State of New York and the other states (II) $75 million to fund the provision of independent research to investors; and (III) $25 million to promote investor education.  The payments for the provision of independent research to investors and to promote investor education are required to be made over the course of the next five years.  MLPF&S also agreed to comply with certain undertakings.

In March 2006, MLPF&S entered into a settlement with the SEC arising from an investigation related to MLPF&S’ retention and production of e-mail.  The SEC found that MLPF&S willfully violated Section 17(a) of the Exchange Act, and Rules 17a-4(b)(4) and 17a-4(j) there under.  Without admitting or denying the allegations, Merrill Lynch consented to the entry of an injunction enjoining it from violating the above-referenced provisions, entered into an undertaking regarding its policies and procedures and agreed to pay a civil penalty $2,500,000.

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Item 2.Unregistered Sales of Equity Securities and Use of Proceeds

(a)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-07	$	2,011,848	1,725,131	$	1.1662
Feb-07	773,165		646,892	1.1952
Mar-07	645,431		569,565	1.1332
Apr-07	866,760		778,480	1.1134

CLASS C

	Subscription
	Amount		Units	NAV (1)
Jan-07	$	2,881,057	2,506,793	$	1.1493
Feb-07	2,109,219		1,792,182	1.1769
Mar-07	4,306,212		3,862,073	1.1150
Apr-07	5,570,697		5,089,254	1.0946

CLASS D

	Subscription
	Amount		Units	NAV (1)
Jan-07	$	1,334,000	1,099,390	$	1.2134
Feb-07	—		—	1.2452
Mar-07	352,999		298,570	1.1823
Apr-07	11,999,999		10,317,255	1.1631

CLASS I

	Subscription
	Amount		Units	NAV (1)
Jan-07	$	94,948	80,993	$	1.1723
Feb-07	35,999		29,952	1.2019
Mar-07	945,068		828,861	1.1402
Apr-07	568,449		507,272	1.1206

(1) Net Asset Value for all other purposes

(b) None.

(c) 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.

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Item 6.Exhibits and Reports on Form 8-K.

(a) 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.

(b) Reports on Form 8-K.

There were no reports on Form 8-K filed during the three months of fiscal 2007.

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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 the undersigned thereunto duly authorized.

	ML ASPECT FUTURESACCESS LLC
	By:	MERRILL LYNCH ALTERNATIVE
		INVESTMENTS LLC
		(Manager)
Date:  May 15, 2007	By	/s/ BENJAMIN C. WESTON
		Benjamin C. Weston
		Chief Executive Officer and President (Principal Executive Officer)
Date:  May 15, 2007
	By	/s/ BARBRA E. KOCSIS
		Barbra E. Kocsis
		Chief Financial Officer
		(Principal Financial and Accounting Officer)

18