What Is the Role of an Exchange’s Matching Engine in Ensuring Market Fairness?

The matching engine is the core system that processes and executes trades based on predefined rules. Its role in fairness is critical, as it enforces the priority rules (like price-time) and ensures orders are executed transparently and consistently.

A well-designed, low-latency matching engine prevents manipulation by ensuring all market participants are subject to the same execution logic and speed constraints.