How Do CEXs Attempt to Level the Playing Field for All Traders regarding Latency?

CEXs attempt to level the playing field by offering various access tiers and ensuring transparency in their data distribution policies. While co-location is a reality, CEXs often implement standardized API interfaces and network infrastructure to ensure a baseline level of fairness for all participants.

Some exchanges employ "speed bumps" or randomized order matching to neutralize the ultra-low latency advantage. However, achieving true latency parity between HFTs and retail traders remains a significant challenge due to the physics of data transmission.