Glossary
Latency arbitrage
Latency arbitrage is trading on delays between a broker's price feed and faster market prices, often with automated expert advisors, to capture moves the broker's quotes have not caught up with. It is usually a pricing and conduct issue rather than money laundering.
Why it matters for brokers and payment firms
It matters to compliance when profits are withdrawn quickly to third parties or when the same accounts show other patterns. Marqib lists latency arbitrage as a roadmap typology, not a current rule.