If you don't know what derivatives even are, perhaps you're not qualified to recommend their regulation.
I know what they are Toddster. But I'm not going to play trivia pursuit games just to satisfy your curiosity. I have posted numerous articles on OTCs, some by the professor you so disparage. So I think I am sufficiently knowledgeable about the OTC market to comment on the same.
PS Fekete also points out where Milton Friedman went wrong. Have you read that one? I tend to agree with Fekete on that front as well.