In a statement issued today, the investment bank declared: "Merrill Lynch completely rejects the allegations of insider trading which have been the subject of recent press coverage. Merrill Lynch has already commenced proceedings to recover in excess of $9 million owed to it by How Trading and David Waterhouse. These proceedings are set down for trial next Tuesday.'' Mr Waterhouse has provided a witness statement as part of a legal dispute between Merrill's subsidiary Berndale Securities and How Trading before the Supreme Court of Victoria.