Derivative Timebomb - still not defused

Talk, talk, talk - that is all the regulators and their political puppet masters seem to provide with respect to the derivatives market. Could it be that they just do not understand these markets? I agree with Chris Whalen and Barry Ritholtz (see video) when they call for the repeal of the Commodities Futures Modernisation Act which carved out a largely regulation-free zone for the OTC derivatives market. Even better would be a strengthening of margin requirements across the board - anything under 20-30 percent depending on the product is not good enough. Let us remember how markets moved close to that in panics during 1987 and 2008-09.  Recent worries about the adequacy of central clearinghouses put the finger on this problem but I fear that their capital and margin requirements are not up to the task - BY A MILE!