How Does a ‘Speed Bump’ Mechanism Affect High-Frequency Trading on a CEX?

A speed bump, or minimum resting time, imposes a small, mandatory delay (e.g. a few milliseconds) on incoming orders before they can be executed. This delay is designed to negate the ultra-fast technological advantage of high-frequency traders, particularly those engaging in latency arbitrage.

By slowing down the fastest actors, it aims to level the playing field and protect slower participants from being consistently picked off.