How Does a CEX Manage the Data Access of Its Market Makers?

A CEX manages the data access of its market makers through strict, contractual agreements and technological controls. Market makers often receive faster, lower-latency data feeds, but they are typically prohibited from using this privileged access to trade ahead of client orders (front-running).

The CEX employs "Chinese Walls" (internal separation) to ensure the market-making desk is segregated from the exchange's core matching engine and proprietary trading desk. Their activity is heavily scrutinized by the CEX's trade surveillance system to prevent abuse of their informational advantage.