How Do Options Trading Platforms Prevent Latency-Based Front-Running?

Latency-based front-running, often associated with high-frequency trading (HFT), is mitigated by measures such as "speed bumps" or randomized order execution delays. Some exchanges implement a frequent batch auction (FBA) model, where orders are collected and executed at discrete, periodic intervals, neutralizing the advantage of microsecond speed differences.

Colocation of servers is also tightly regulated or restricted to ensure fair access to the matching engine for all participants.