How Do Exchanges Design “Speed Bumps” or Randomized Order Queues to Counter HFT Detection of Icebergs?

Exchanges implement "speed bumps," which are intentional, small delays (typically milliseconds) on incoming orders and cancellations. This negates the speed advantage of the fastest HFTs, giving the market a moment to react and preventing immediate front-running of detected icebergs.

Randomized order queues disrupt the standard price-time priority, meaning the first order at a price level isn't necessarily the first to be executed. This makes it harder for HFTs to predict which orders will be filled next, thus obscuring the pattern of an iceberg's replenishing tranches.