It may contribute some, but it is only one cause. It is my opinion that what is causing excessive market volatility is the market makers requirements to fill 100 shares versus 1,000 shares at one price. That allows them to fill 100 shares, and then bump the price up or down, rather than having to fill 10 orders of 100 each before moving the price. So it is the combination of more market players and less commitment from the market makers, which is a recipe for volatility. We are still in the infantile stages of the transformation, but the professional s job providing liquidity eventually will no longer be needed.
Decimalization is one example of trend that is limiting the profit potential for professionals.
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