Earlier quoted context omitted.
How about forcing public markets to bucket trades within say 2 second windows, executing best matches at the end of each period. Low friction and reduces value of millisecond latency advantages.
Then there would be algorithms that analyze the trades in those buckets, make a prediction on the outcome and carry out several counter trades to put into the same bucket. See a lot of people selling, cancel your buy order and replace with a short instead. Get a few of those bots involved and each bucket window would be exploding dueling pits of orders that would require insanely large systems to process.
Most of this is improvable with software. As other commenters point out, the resistance is from incumbent trading institutions who have a lot invested in the status quo.