How Do Centralized Crypto Exchanges (CEXs) Technically Mitigate Latency-Based Front-Running?

CEXs employ several technical safeguards. They use co-location services to minimize network latency differences between traders.

They also implement sophisticated order matching engines that process orders based on price-time priority. Furthermore, some exchanges use "speed bumps" or randomized batching of orders to negate the advantage of microsecond speed differences.

These measures aim to create a level playing field for order submission.