Regulating derivatives

Everyone knows, derivatives are risk hedge instruments. One can trade multiple times (25 to 1000 times) of net value as part of this over the desk systems. Between 2003 to 2008, credit default swaps are trading at 800 to 1000 times where as commodities are at slightly less times say 500 to 600 times. Compare these against traditional derivatives like equity derivatives and FX derivatives, they are at just 150 to 200 times. As per reports, total notional amount under derivatives is about 700 trillion and USA accounts for 50-60% of that trading.Credit default swaps account for 70 trillion of notional amount. That means unallocated derivatives with notional amount of 70 trillion are looming over the disintegrated firms. So, it is the fate of affairs.
Now the question is, why not government implemented regulations on financial derivatives earlier. Now, they are planning to implement regulations. One way, it is good that some of the developing countries did not get into the heavy exposure as USA did in derivatives. Anyways, effect is global.