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I believe it does work as standard, I have a modified server list that lists 4 servers (live + 3 development shards) and whenever an external development shard is running, I can see the latency.
I get 0ms displayed when connecting locally, I see 100 - 6000ms when one of the developers have their own local test running and it's listed on my server-list.
Next time they have their tests up at the same time as me, I'll take a screenshot