How Do “Speed Bumps” Technically Delay Order Execution to Prevent Front-Running?

Speed bumps are intentional, short, and fixed delays (e.g. a few milliseconds) introduced by an exchange before an order is processed by the matching engine. They are designed to negate the microsecond advantage gained by HFTs through superior technology or co-location.

By delaying all incoming orders equally, they level the playing field and make latency-based front-running strategies less viable.