Nope. That existed for many years in implementation details at exchanges and the games were worse.
What actually happened in those cases is liquidity went away faster in drastic moves and the spreads had to account for the risk.
Further, you'd have all manner of snake oil consultants that would be selling true secrets of the NASDAQ randomizer (this exact thing happened before the exchanges standardized colocation. Guys would claim only they knew where in a data center had the shortest cable runs for instance). All of that inefficiency gets priced into the spread and is paid by all market participants.
If you really want to get rid of microsecond trading (I don't know why you'd care honestly, but if you did) get rid of the sub-penny rule. Make market making algorithms truly compete on price. Speed will still be important for canceling orders/gathering information, but you could counteract it by trying to do what we actually want the algos to do. Discover the right price cheaply.
What actually happened in those cases is liquidity went away faster in drastic moves and the spreads had to account for the risk.
Further, you'd have all manner of snake oil consultants that would be selling true secrets of the NASDAQ randomizer (this exact thing happened before the exchanges standardized colocation. Guys would claim only they knew where in a data center had the shortest cable runs for instance). All of that inefficiency gets priced into the spread and is paid by all market participants.
If you really want to get rid of microsecond trading (I don't know why you'd care honestly, but if you did) get rid of the sub-penny rule. Make market making algorithms truly compete on price. Speed will still be important for canceling orders/gathering information, but you could counteract it by trying to do what we actually want the algos to do. Discover the right price cheaply.