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MF Global has been a tough road for the futures and options industry. Already gripped by low interest rates, of which FCMs often rely on for a consistent revenue stream, the futures and options industry was hit with what has been privately described to me as "the most challenging experience in the history of the commodity markets."

The question becomes, after two knock-out blows how does an industry respond?

The past few weeks have witnessed a degree of positive movement.

JP Morgan released of $168 million of MF Global client money it was holding on behalf of customers, clearing up some legal confusion on the issue. We're likely to see JP Morgan and MF Global bankruptcy trustee Giddens in an extended legal battle over the balance of funds, with the potential for a voluntary return of funds (particularly in light of potential criminal action in the case). Further, the expectation has been set that bad actors involved in decisions that damaged the integrity of commodity markets will face a thorough and vigorous investigation, which has begun according to sources. Those close to the industry will keep an eye current on investigatory developments and will likely know if interference takes place between career regulators and political appointees that damage markets.

From August 2, 2011 to November 3, 2011 MF Global was a sad story of a man with limited choices who ultimately thought he was bigger than the backbone of the US financial system. From November 3, 2011 until about this time it was a story of individual industry participants and certain governmental institutions that stood up for MF Global clients and commodity market integrity to shine a light on clear injustice. From this point on it might be a story of how the rule of law prevailed and how larger forces in society demonstrate how no one individual is so above the integrity of markets.

If there is such a thing as victory, it is not a victory for the "commodity markets," but a demonstration by the US financial system and certain branches of government that the system can cleanse itself. That's the optimistic point of view, anyway. But let's be clear. Any victory with MF Global is hallow because significant damage has been done.