What Is the Role of an Order Book in Preventing or Facilitating Front-Running on a Centralized Exchange (CEX)?

A CEX order book, by publicly displaying all limit orders, can facilitate a form of passive front-running where traders gain an informational edge by analyzing the book's depth and structure. However, the CEX itself has internal systems to prevent active front-running by its employees or high-frequency trading firms with privileged access.

These include time-stamping orders, using a strict price-time priority matching algorithm, and employing market surveillance tools to detect suspicious trading patterns near large orders.