What Is a ‘Speed Bump’ and How Does It Deter Front-Running?

A speed bump is a mechanism implemented by an exchange that intentionally introduces a small, fixed delay (e.g. a few milliseconds) before an order is executed or routed. This delay is applied equally to all participants.

It negates the nanosecond-level advantage high-frequency traders seek, preventing them from consistently reacting to and front-running slower participants' orders.