At some point the whole derivative market should be shut down. If all they are are bets - example I bet someone a trillion dollars the Packers win the next superbowl and I lose and don’t pay, does it really matter to the economy. Sure the winner is out a trillion dollars but it’s phony. No one is really out anything.
Financial regulation probably isn’t the answer. Law of unintended consequences, etc.
Derivatives are long shot odds. I get $1 million for $1 investment if Michigan Sate beats Wisconsin on a Hail Mary pass with no time left in the game. Oh wait that just happened!!!