How Does Latency Arbitrage Differ from True Front-Running on a CEX?

Latency arbitrage is a form of high-frequency trading where a firm exploits a tiny time delay (latency) in the transmission of price data between different exchanges or data feeds. They see a price change on one venue and trade on another before the price updates there.

True front-running, however, involves using non-public information about a client's pending order to trade ahead of it. Latency arbitrage exploits public data transmission speed, while front-running exploits confidential order flow.