This study examines the legal governance of Artificial Intelligence (AI) applications within financial market infrastructure (FMI), including stock exchanges, central counterparties, central securities depositories, and settlement systems. The paper adopts an analytical and comparative legal methodology to evaluate the adequacy of existing legal frameworks in addressing emerging risks associated with AI-driven operational systems
The study argues that traditional legal rules governing financial institutions are increasingly insufficient to regulate autonomous or semi-autonomous algorithmic systems capable of influencing market integrity, operational resilience, and systemic stability. Particular attention is devoted to issues of legal liability, explainability, cybersecurity, algorithmic accountability, operational risk, and institutional governance
The research further compares international regulatory approaches, including IOSCO principles, the European Union Artificial Intelligence Act, and emerging governance standards adopted by financial regulators and international financial institutions. The paper concludes by proposing a specialized legal and regulatory framework for the Sultanate of Oman designed to balance technological innovation with investor protection, market integrity, and financial stability