Transcriptional regulation involves covalent chemical modifications of the core histone proteins that comprise the nucleosome. Each histone is modified, and modifications occur on the amino- and carboxyl-terminal extensions as well as the globular domains. The modifications can be either dynamic or static. Dynamic modifications include acetylation, phosphorylation, and ubiquitylation (
60). Many of the enzymes that add and remove these modifications have been identified. Methylation is a more static modification, and lysine demethylating enzymes have not been reported (
4).
Certain large multicomponent protein complexes possess more than one enzyme to regulate histone modifications. The 1.8-MDa SAGA complex in
Saccharomyces cerevisiae contains enzymes that act to acetylate primarily histones H3 and H2B and to deubiquitylate histone H2B (
22,
24). Acetylation is carried out by Gcn5, and this reaction has been intensively studied. The Gcn5-mediated acetylation of histones is required for the full activation of many genes in organisms ranging from yeast to humans (
12,
25) and is reversed by deacetylation through a number of histone deacetylase (HDAC) enzymes (
47). Gcn5 is essential for viability in mice (
68a,
70). The biochemistry and atomic structure of Gcn5 have been characterized, revealing the basis of the substrate specificity for Lys-14 of the histone H3 amino terminus (
13,
51,
64). H3 acetylation by Gcn5 requires prior H3 phosphorylation for the full activation of certain genes in yeast (
34). An interrelationship between phosphorylation and acetylation is conserved from yeast to humans (
2,
69).
The SAGA complex also harbors Ubp8, a histone H2B-deubiquitylating enzyme (
14,
24,
52). Lys-123 of the carboxyl terminus of H2B is ubiquitylated by an E2 conjugase-E3 ligase pair (Rad6/Bre1) (
28,
47,
66). Ubiquitylation is transient during gene activation, and ubiquitin is removed by Ubp8 acting within the SAGA complex (
14,
24). Both ubiquitylation and deubiquitylation are required for optimal gene activation. The ubiquitylation of H2B is linked to histone methylation (
24,
61). Specifically, ubiquitylated H2B (ubH2B) is required for Set1-mediated histone H3 Lys-4 methylation and Dot1-mediated Lys-79 methylation (
10,
62). Although the mechanism is still unknown, this
trans-tail modification pattern requires a portion of the proteasome, which is present at the promoter (
17,
21). In contrast, Set2-mediated histone H3 Lys-36 methylation does not require ubiquitylation (
61). SAGA-dependent H2B deubiquitylation by Ubp8 is required for the correct levels of Lys-4 vis-à-vis Lys-36 methylation (
24). Specifically, the absence of deubiquitylation leads to high levels of Lys-4 methylation, whereas the absence of ubiquitylation leads to high levels of Lys-36 methylation (
24).
Little is known about the biochemistry of deubiquitylating enzymes, including how they are targeted to substrates for specificity. One way to target enzymes to their substrates is to integrate them into multicomponent protein complexes. For example, SAGA delivers Gcn5 to appropriate promoters in response to certain inducing conditions via associations of the Tra1 subunit with DNA-bound activators (
23). In this case, the presence of Gcn5 within SAGA is a key aspect of delivery to the substrate. How Ubp8 is integrated into SAGA or whether its association within SAGA is an important feature of substrate targeting is not known.
SAGA is modular in structure and function, incorporating multiple components for each of several functions, including acetylation, TATA-binding protein (TBP) regulation, and activator interactions. The histone acetyltransferase module consists of Gcn5, Ada2, and Ada3 (
3,
11). TBP is regulated both positively and negatively by a module consisting of Spt3, Spt7, and Spt8 (
7,
16,
71). The complex may bind to DNA through a Taf module that may form a nucleosome-like structure through histone fold domains (
19). Tra1 provides key interactions with acidic activators (
23), along with contributions by Ada2 (
5). It has not previously been understood whether the Ubp8 function is correlated with a known module within SAGA or whether it constitutes a distinct module.
Here we describe a structure-function study of the association of Ubp8 with SAGA, using biochemical, genetic, microarray, and proteomic analyses. We provide evidence that a putative zinc finger domain of Ubp8 is required for the association of Ubp8 with the SAGA complex. Furthermore, our results indicate that Ubp8 constitutes a functional module within SAGA through its association with a newly identified component of SAGA, called Sgf11.