In the Preferences → Midi page, I see an option for “Asio Latency Compensation Active By Default”.
I tried to find from the manual what does this do, and I see the following text: If you activate the “ASIO Latency Compensation” button on the track list, all recorded events are moved by the current Latency setting.
I can’t find this “ASIO Latency Compensation” button on the track list anywhere. Can somebody explain how does this work and where can I find this button? Thanks.
Probably the button is hidden, right click in the track area and select track controls to set it up.
It does what it says, moves the midi events you record by the latency amount in Device Setup>VST Audio System.
Edited while Makumbaria posted. What he said too.
I can easily see its button on my midi tracks list. Did you tried to “expand” the size of your tracks to see more buttons?
I don’t seem to find it. Any chance you guys could take a screen capture and show me what does the button is supposed to look like?
Manual P126 directly between the input monitor and the “R”(ead) button.
Ok, I found it. Thanks a lot for the help, the problem was that I was trying to find it on an audio channel, not midi. 
Are you looking on MIDI tracks?
you posted while I posted… 
Yeah, it is present only in midi tracks. 
I’ve had some latency problems in my midi input so I really hope that this button might solve my problems. Thanks again for the help guys
It will only move events after you recorded them. It will not change the latency that delays the sound after you hit the piano key.
That’s actually the problem I have been having (not the audio delay), that the midi notes don’t appear on the same exact spot where I play them. There is a delay between me pushing the keyboard and the note appearing on the piano roll, and I always had to shift them manually after.
And now you don’t!
Was this feature already on Cubase 6, or is it something that Cubase 7 introduced?
It is new.
I thought this was compensated for automatically…
If not, why would it not be?
On the Device Setup → Midi Port Setup - there is an option to “Use System Timestamp for ‘Windows MIDI’ Inputs”. Anyone knows what does this option do?