<ARTICLE> 5 <LEGEND> ML PRINCIPAL PROTECTION LP CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION DECEMBER 31, 1998 AND 1997 AND CONSOLIDATED STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 1998, 1997 AND 1996. </LEGEND> <CIK> 0000925433 <NAME> ML PRINCIPAL PROTECTION TRADING L.P. <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> DEC-31-1998 <CASH> 20,607,897 <SECURITIES> 60,536,271 <RECEIVABLES> 0 <ALLOWANCES> 0 <INVENTORY> 0 <CURRENT-ASSETS> 82,431,167 <PP&E> 0 <DEPRECIATION> 0 <TOTAL-ASSETS> 82,431,167 <CURRENT-LIABILITIES> 2,482,040 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 0 <OTHER-SE> 79,106,838 <TOTAL-LIABILITY-AND-EQUITY> 82,431,167 <SALES> 0 <TOTAL-REVENUES> 12,128,221 <CGS> 0 <TOTAL-COSTS> 8,011,526 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> 4,089,639 <INCOME-TAX> 0 <INCOME-CONTINUING> 0 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 4,089,639 <EPS-PRIMARY> 4.40 <EPS-DILUTED> 4.40