Latency arbitrage and execution abuse involve trying to profit from delayed prices, stale quotes, out-of-sync prices, feed discrepancies, order-processing delays, execution latency, or other infrastructure inefficiencies.
This is prohibited because it is based on exploiting pricing or execution issues rather than genuine trading decisions.
Example: repeatedly trading only to capture a stale delayed price before it updates is execution abuse rather than genuine market trading.
Related Terms: Section 7.10
