Does a CEX Utilize a Mempool Concept, and If So, How Is It Different from a Blockchain Mempool?

A CEX uses an internal, private system that functions conceptually like a mempool, often called an "order queue" or "pending order book." It holds client orders before they are matched. The key difference is that this queue is not public.

It is a proprietary, centralized database managed by the exchange, making it inaccessible to external front-running bots. Only CEX employees with privileged access could potentially exploit this internal queue, which is why "Chinese Walls" are necessary.