Is there a link between the sharp increase in money-equivalents and the increased use of derivatives?

There has been a lot of coverage about the increased use of derivatives but few people have put this in the context of the increased supply of money and money equivalents. Doug Noland is an exception:

Mushrooming derivatives markets are a monumental monetary development. Clearly, the capacity to readily hedge various risks – certainly including Credit, interest-rates, currency and liquidity – has significantly altered monetary analysis. Today, hedging non-monetary liabilities is straightforward, in the process modifying the characteristics of non-money Credit instruments to more "money"-like. Here, the combined instruments and their hedging vehicles mimic the attributes of "money," making the identification and tabulation of contemporary functional "money supply" impossible.