Basically for all you/me/we know the exchange has it's own bot running trades and this bot is given information well before it is broadcast to other bots or the GUI on the exchange, fractions of a second is all it takes.
Heh, you basically described how the big stock exchanges work with the large(st) brokerage houses (clients) that do HFT. Someone would call that "an unfair advantage"... but still it is legal. Go figure.