It'll hamstring the market. That's the Mad Hatter approach to public finance. Make a mess, and move on down the table. That is absolutely unacceptable. Someone has to take responsibility.
Someone has to have the political courage to clean up.
Public funds managers must always keep one thing foremost in mind. We are managers of public funds. As treasurer, I need to account for every tax dollar collected, invested, gained or lost. One complex derivative can make that accountability impossible. Derivatives are not inherently evil.