As a technicality, we do not know what would happen.

Consider this. In the old days, every trade did effectively have a fixed cost to it because it involved some degree of human labour. Larger trades, more checks/risks etc. Nonetheless markets successfully operated for hundreds of years in these conditions. And I think it is an open question as to whether markets were healthier with fewer trades rather than more. Particularly given how much of society's top talent is drawn into optimising every faster and more frequent activity that generates no social progress.

Would the market continue to operate if those old frictional costs were resumed? Yes. Would it be better or worse? Unknown.