Upon encountering antigens, B-lymphocytes can adapt to produce a highly specific and potent antibody response. Somatic hypermutation, which introduces point mutations in the variable regions of antibody genes, can increase the affinity for antigen, and antibody effector functions can be altered by class switch recombination (CSR), which changes the expressed constant region exons. Activation-induced cytidine deaminase (AID) is the mutagenic antibody diversification enzyme that is essential for both somatic hypermutation and CSR. The mutagenic AID enzyme has to be tightly controlled. Here, we show that engagement of the membranebound antibodies of the B-cell receptor (BCR), which signals that good antibody affinity has been reached, inhibits AID gene expression and that calcium (Ca 2؉ ) signaling is essential for this inhibition. Moreover, we show that overexpression of the Ca 2؉ sensor protein calmodulin inhibits AID gene expression, and that the transcription factor E2A is required for regulation of the AID gene by the BCR. E2A mutated in the binding site for calmodulin, and thus showing calmodulin-resistant DNA binding, makes AID expression resistant to the inhibition through BCR activation. Thus, BCR activation inhibits AID gene expression through Ca 2؉ /calmodulin inhibition of E2A.activation-induced cytidine deaminase ͉ BCR ͉ calcium ͉ E2A P rocesses that diversify antibodies play a major role in protecting higher organisms from pathogens. Upon encountering antigens, antibody-expressing B-lineage lymphocytes adapt to produce a highly specific and potent antibody response. Somatic hypermutation, which introduces point mutations in the variable regions of antibody genes, and gene conversion can increase the affinity for antigen, and antibody effector functions can be altered by class switch recombination (CSR), which changes the expressed constant region exons (1, 2). Activationinduced cytidine deaminase (AID) is the antibody diversification enzyme that is essential for somatic hypermutation, gene conversion, and CSR (3-5). The mutagenic AID enzyme has to be tightly controlled, and both aberrant AID activity and chromosomal translocations involving switch regions of antibody genes are hallmark features of B-cell malignancies (2, 6-9).AID is specifically expressed in a subset of germinal center B-lymphocytes (10, 11). Specific stimulatory signals activate their proliferation and the diversification of the variable regions of their Ig genes, followed by expression of mutated surface Ig and selection of the mutated B-cell receptors (BCRs) for reactivity with antigen (12-14). E-protein, NF-B, Pax5, STAT6, and IRF-8 transcription factors participate in expression of the AID gene (15-18). The gene is induced by IL-4 and ligation of CD40, and, in mice, other inducers have also been identified, including LPS (11,17,19). Only ligation of CD45 has been reported to lead to signaling that inhibits AID gene expression, and this was shown to involve inhibition of signaling to STAT6 (19).In the present study, we show that a...