Speaking about the MF Global scandal, an executive of the CME Group recently told a group of hedgers that "this was the failure of a firm, a firm that broke the rules, not the failure of any clearing house. At CME, we met our obligations. We believe all customers affected should have their full balances and property returned by MF Global. Until then, we will not consider the process complete."

There's a lot packed into the statement, which was reported by Reuters. CME comes across as angry, defensive and driven to right wrongs perpetrated upon its customers--all at the same time. While it cannot publicly acknowledge any blame lest it open itself up to legal challenges, the exchange suggests it is keenly aware that customers blame it for the sins of MF Global, which is an entirely reasonable position.

Reuters makes clear that key constituencies in the commodities ecosystem are pondering some big changes. Ag bankers and end users are openly talking about new ways of transacting that would disintermediate brokerages. Bank customers are exploring systems that would allow "bank customers to sell commodities directly to end-users" as well as "over-the-counter privately negotiated deals, options markets, and back-to-back deals where purchases and sales are done simultaneously."

None of this will likely amount to much. In the end, there is little alternative to exchange-based trading, but critics of the CME Group are certainly making their points. Some of have scaled back their financial activity until the scandal is cleared up. Meanwhile, the hunt for the missing funds continues.

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