How do you pick the timeframe? Seconds are still too fast for humans. Minutes would be too fast for people who are not professional traders, hours would be too fast for people who can't be near a computer all day.
There is always a locality advantage in the market, this has been true as long as there have been markets, and it will be true forever. Why do we as market participants care?
The other problem with your scenario is that you make market making more risky. The riskier it is, the higher the profits must be. This means that the market makers must keep the bid/ask spread higher (their means of making a profit). This cascades to all of us in the form of higher execution costs.
There is always a locality advantage in the market, this has been true as long as there have been markets, and it will be true forever. Why do we as market participants care?
The other problem with your scenario is that you make market making more risky. The riskier it is, the higher the profits must be. This means that the market makers must keep the bid/ask spread higher (their means of making a profit). This cascades to all of us in the form of higher execution costs.