Scott W. Bauguess

Director of the Program in Financial Regulation
Bio & Writings CV/Resume

Dr. Bauguess directs the Salem Center’s program on Financial Markets Regulation, and is a Clinical Associate Professor of Finance at the McCombs School of Business. Prior to joining the UT-Austin faculty, he spent over a decade at the U.S. Securities and Exchange Commission, serving most recently as the Deputy Director of its Economic and Risk Analysis division. In that role, he supervised the economic analyses in recommendations to the Commission to enact federal rules related to corporate disclosure, asset management, market structure, and derivative securities, and oversaw data management and custom analytics programs designed to detect non-compliance with securities markets regulation. He received a B.Sc. in Electrical Engineering from the University of Illinois, and an M.Sc. in Electrical Engineering and Ph.D. in Finance from Arizona State University. Prior to his doctoral studies, Dr. Bauguess worked in the corporate research lab and manufacturing at Motorola, specializing in semiconductor device physics.

Education

Ph.D. Finance, Arizona State University, 2004 (Advisors: Marie Sushka & Myron Slovin)

MBA, Arizona State University, 1999

M.S. Electrical Engineering, Arizona State University, 1995

B.S. Electrical Engineering, University of Illinois, 1992

Employment

University of Texas, McCombs School of Business

2019-               Clinical Associate Professor of Finance

2019-               Director, Salem Center for Policy, Program in Financial Markets Regulation

U.S. Securities and Exchange Commission

2013-2019       Deputy Director, Economic and Risk Analysis

2011-2013       Assistant Director, Economic and Risk Analysis

2009-2011       Senior Financial Economist

2007-2009       Visiting Academic Scholar

George Washington University, School of Business

2009-2016       Lecturer, Corporate Financial Management (M.S. Finance program)

Texas Tech University, Rawls College of Business

2005-2009       Assistant Professor of Finance (on leave 2007-2009)

2004-2005       Visiting Assistant Professor of Finance

Arizona State University, W.P. Carey School of Business

1999-2004       Ph.D. Student, Graduate Assistant, and Lecturer

Motorola, Semiconductor Product Sector, Phoenix AZ

1995-1998       Manufacturing

1992-1995       Corporate Research Lab

Regulatory Experience

Securities and Exchange Commission’s representative to the Financial Stability Board, Standing Committee on Assessment of Vulnerabilities, 2017-2018.

Securities and Exchange Commission’s representative to the Financial Stability Board, Analytical Group on Vulnerabilities, 2015-2017.

Member of the Securities and Exchange Commission’s Emerging Risk Group, 2015-2018.

Senior Officer Member/Chair of the Securities and Exchange Commission’s Risk Analytics Committee, 2015-2017

Senior Officer Member of the Securities and Exchange Commission’s Tips, Complaints, and Referrals (TCR) Oversight Board, 2014-2018.

Senior Officer Member of the Securities and Exchange Commission’s Capital Planning Committee, 2014-2017.

Executive sponsor for establishing DERA’s Office of Risk Assessment, 2014

Executive sponsor for establishing DERA’s the Office of Research and Data Services, 2013

Supervised the economic analyses of the JOBS Act and Dodd Frank Act Title VII/IX rule proposals and adoptions, 2011-2013.

Academic Experience

Refereed Publications

  1. “The Economic Effects of SOX Section 404 Compliance: A Corporate Insider Perspective” (with Cindy Alexander, Gennaro Bernile, Alex Lee, and Jennifer Marietta), Journal of Accounting and Economics, 2013, Vol. 56, No. 2/3, 267-290. link
  2. “Large Shareholder Diversification, Corporate Risk Taking, and the Benefits of Changing to Differential Voting Rights” (with Marie Sushka and Myron Slovin), Journal of Banking and Finance, 2012. Vol. 36, No. 4. 1244-1253. link
  3. “Ownership Structure and Target Returns” (with Sara Moeller, Frederik Schlingemann, and Chad Zutter) Journal of Corporate Finance, 2009. Vol. 15, No. 1, 48-65.  Best paper award, Journal of Corporate Finance special issue on Corporate Control, Mergers, and Acquisitions. link
  4. “Protective Governance Structure and the Value of Acquisition Activity” (with Mike Stegemoller) Journal of Corporate Finance, 2008, Vol. 14, No. 5, 550-566. link

Working Papers

  1. 1. “Investor Demand for Information in Newly Issued Securities” (with Jack Cooney and Kathleen Hanley), July 2018. Presented at the American Finance Association Meetings 2016 link
  2. 2. “Do Merger Synergies Exist?” (with Gennaro Bernile), November 2013. Presented at the Western Finance Association meetings, Victoria BC, 2010 link

Other Publications

  1. “Regulators’ Use of Data Analytics,” Book Chapter, Practicing Law Institute (With Charles Riely), forthcoming.
  2. “Capital Raising in the U.S.: An Analysis of the Market for Unregistered Securities Offerings, 2009‐2017” (with Rachita Gullapalli and Vladimir Ivanov), DERA White Paper, August 2018. link
  3. “Capital raising in the U.S.: An analysis of the market for unregistered securities offerings, 2009-2014” (with Rachita Gullapalli and Vladimir Ivanov), DERA White Paper, October 2015. link
  4. “Perspectives on Economic Analysis at the SEC, Panel Session from the 2014 FMA Meeting”, (with Craig Lewis, Vladimir Ivanov, Amy Edwards, Igor Kozhanov, and Tara Bhandari) Journal of Applied Corporate Finance, 25:1 (2015), 58-67
  5. “Qualified Residential Mortgages: Background data analysis on credit risk retention” (With Joshua White), DERA White Paper, July 2013 link
  6. Capital raising in the U.S.: An analysis of unregistered offerings using the regulation D exemption, 2009-2012 (With Vladimir Ivanov), DERA White Paper, July 2013 link
  7. Capital raising in the U.S.: The significance of unregistered offerings using the Reg D exemption (With Vladimir Ivanov), DERA White Paper, February 2012
  8. “Risk Management, Corporate Governance, and the Search for Long-term Investors,” (with Jim Dunigan, Damien Park, Patrick McGurn, Don Chew, and Ralph Walkling), Journal of Applied Corporate Finance, 2010, Vol. 22, No. 4, 58-74.

Teaching, McCombs School of Business

Business Finance, Undergraduate Honors program (FIN 357H)

Security Market Policy, cross listed with UT Law (FIN 377 & LAW 379M)

Professional Service

Practitioner Director, Financial Management Association, 2016-2018

Ad hoc referee for Journal of Accounting Research, Journal of Corporate Finance, Journal of Banking and Finance, Financial Review, Journal of Business Finance and Accounting, Journal of Economics and Business, Multinational Finance Journal.

Seminar and Conference Participation

American Finance Association (2016), Southern Methodist University (2015), American Finance Association (2014), Western Finance Association (2010), MARC Conference (2010), FIRS Conference (2009), American University (2008), Temple University (2008), Lonestar Conference (2007), University of Utah (2007), Securities and Exchange Commission (2007), Texas Tech University (2004), Illinois State (2004), University of Wyoming (2003)

Conferences and Academic Programs Organized

Ph.D. Student Symposium on Financial Market Policy Developments and Research, Salem Center virtual event, August 2020

Regulation Best Interest, Policy and Compliance Conference, Salem Center, Austin TX, February 2020

SEC Doctoral Student Symposium, Security and Exchange Commission Headquarters, Washington, DC, July 2018

SEC-NYU Dialogue on Securities Markets, a five-part series, 2017-2018, co-organized with Alexander Ljungqvist, NYU Solomon Center link

SEC Distinguishing Visiting Scholars program (established program in 2014) link

Invited Talks and Keynotes

2019 

Keynote speaker, American Medical Informatics Association (AMIA), “Can Machine Learning in Finance Inform Clinical Decision Support?” Washington, DC. link

Invited lecture, Ontario Securities Commission, “Use of ‘Big Data’ and ‘AI’ in Market Regulation,” Toronto, Canada.

Video broadcast, SIFMA, Compliance and Regulatory Policy Committee, “Use of Big Data and Algos,” from Washington, DC.

2018

Keynote speaker, NRS Fall 2018 Compliance Conference, opening address, “How data is used at the SEC,” Carlsbad, CA.

Keynote speaker, Investment Company Institute, Securities Law Developments Conference, Washington, DC.

Invited talk, Ai4/Finance, “How will AI solve the ‘hidden state’ problem in market supervision,” Brooklyn, NY.

Keynote speaker, Financial Information Management Association, “The Role of Machine Readability in an AI World,” Boston, MA. link

Keynote speaker, Temple University, 2018 Editors’ Summit, luncheon keynote speaker, “The Role of Academic Research in Financial Market Policy,” Philadelphia, PA.

2017

Keynote speaker, Central Bank of Ireland, Conference on Exchange Traded Funds – Stability and Growth, Dublin Ireland.

Keynote speaker, OpRisk North America, “The Role of Big Data, Machine Learning and AI in Assessing Risks: a Regulatory Perspective,” New York, NY. link

Keynote speaker, Buy-Side Risk USA, “Market Fragility and Interconnectedness in the Asset Management Industry,” New York, NY. link

2016

Keynote speaker, American Accounting Association Midwest Region, “Has Big Data Made us Lazy?” Chicago, IL. link

Keynote speaker, Buy-Side Risk USA, “IA-BD Risk Assessment at the SEC, Fort Lauderdale, FL.

2015 

Keynote speaker, Bates Group and SIFMA: The 2015 Leaders & Experts Forum, “SEC’s use of Data Analytics in Market Risk Assessment Activity, New York, NY.

Invited Talk, Machine Learning and Finance Workshop, Columbia University, presentation, “The Hope and Limitations of Machine Learning in Market Risk Assessment,” New York, NY. link

Keynote speaker, OpRisk North America, “Big Data and Operational Risk,” New York, NY.

2014 

Invited Talk, U.S. Treasury, Data Transparency Town Hall, The SEC’s use of XBRL, Washington, DC.

Panel and Round Table Discussions

2019 

Panelist, University of Notre Dame, CARE Conference, Financial Regulation Effectiveness and the Role of Academic Research, “How Might We Achieve Evidence-Based Financial Regulation?” Washington, DC. link

Panelist, KL Gates, Dialogue with the Regulators: Regtech and its Impact on Financial Services and the Law, Washington, DC.

2018

Panelist, Practicing Law Institute, Financial Services RegTech and Regulatory Compliance Forum 2018, “The Role of Data and Other Elements in Assessing Risk: A Regulatory Perspective,” New York, NY.

Panelist, Federal Reserve Bank of Atlanta, 2018 Financial Markets Conference, panelist, “Machines Learning Regulation (and vice versa),” Amelia Island, FL.

Panelist, White Collar Crime Tech, “How the SEC is Using Machine Learning to Regulate Better,” New York, NY.

2017

Panelist, University of Texas School of Law, Continuing Legal Education, “Data analytics and what your company’s numbers are telling the government,” Houston, TX.

Panelist, AICPA and SIFMA NMS National Conference on the Securities Industry, “Artificial Intelligence and Machine Learning,” New York.

Panelist, Financial Management Association Annual Meeting, “The Role of Academic Research in Policy Making,” Boston MA.

Panelist, Sandpiper Partners event, panelist, “Information Governance, Privacy, Cyber Security, and Data Analytics Briefing,” Arlington, VA.

Panelist, SIFMA Compliance and Legal Society Annual Seminar, “Regulators’ use of Data Analytics,” San Diego, CA.

2016 

Participant, Harvard Law School, Roundtable on Shareholder Engagement, Boston MA.

Panelist, AICPA National Conference on Current SEC and PCAOB Developments, panel on Data Analytics, Washington, DC, December 2016.

Panelist, University of Notre Dame, CARE Conference, “Models for Predicting/ Detecting Fraud,” Leesburg, VA, August 2016.

Participant, Harvard Law School, Harvard Roundtable on Shareholder Engagement, Boston MA.

Panelist, SIFMA Compliance and Legal Society Annual Seminar, “The Rise of Big Data and Data Analytics,” Orlando, FL.

Panelist, Data Coalition’s Financial Data Summit, “Data Users Panel,” Washington, DC.

Panelist, Society for Benefit-Cost Analysis, “Recent examples of benefit-cost analysis in consumer financial regulation,” Washington DC.

2015

Lead discussant, Milken Institute, Roundtable on Systemic Risk and Macroprudential Policy, Washington, DC.

Panelist, American Bar Association, Annual Securities Fraud Conference, “Automated Detection in Securities Enforcement,” New Orleans, LA.

Panelist, Sandpiper Partners event, panelist, “Information and Cyber Governance, Data Analytics and Privacy Briefing,” New York.

Panelist, Data Transparency Coalition, panelist, Open Financial Data in the Executive Branch, Washington DC.

2013 

Panelist, Sandpiper Partners event, “SEC and DOJ Hot Topics,” New York, NY.

2012  

Discussant, Columbia University, “Markets and Ownership: Rethinking the SEC’s Beneficial Ownership Rules,” New York.

2011

Panelist, Midwest Finance Association Meetings, “Systemic Risk and the Dodd Frank Act, Chicago,” IL.

2010  

Panelist, NYU Volatility Institute, Managing Counterparty and Systemic Risk under Dodd Frank, panelist, “Systemic Risk Issues Presented by Clearing Swaps,” New York.

Panelist, Drexel University Center for Corporate Governance, “Outside Stakeholders’ View on Risk,” Philadelphia, PA.

CONSULTING

2020 

White paper on Liquidity and Capital Formation in the Biotech Industry, sponsored by the Biotech Industry Organization (BIO), with J.W. Verret. All views expressed are our own.