<ARTICLE> 5 <LEGEND> This schedule contains summary financial information extracted from consolidated statements of financial condition, income and changes in partners' capital and is qualified in its entirety by reference to such financial statements. </LEGEND> <CIK> 0000917259 <NAME> ML Principal Protection L.P. <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> DEC-31-1996 <PERIOD-START> JAN-01-1996 <PERIOD-END> DEC-31-1996 <CASH> 328 <SECURITIES> 72,815,648 <RECEIVABLES> 0 <ALLOWANCES> 0 <INVENTORY> 0 <CURRENT-ASSETS> 81,694,682 <PP&E> 0 <DEPRECIATION> 0 <TOTAL-ASSETS> 81,694,682 <CURRENT-LIABILITIES> 2,082,851 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 0 <OTHER-SE> 78,843,285 <TOTAL-LIABILITY-AND-EQUITY> 81,694,682 <SALES> 0 <TOTAL-REVENUES> 13,187,029 <CGS> 0 <TOTAL-COSTS> 5,882,437 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> 7,223,364 <INCOME-TAX> 0 <INCOME-CONTINUING> 0 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 7,223,364 <EPS-PRIMARY> 9.57 <EPS-DILUTED> 9.57