Addition of a 39-nucleotide (nt) spliced leader (SL) by trans splicing is a basic requirement for all trypanosome nuclear mRNAs. The SL RNA in Leishmania tarentolae is a 96-nt precursor transcript synthesized by a polymerase that resembles polymerase II most closely. To analyze SL RNA genesis, we mutated SL RNA intron structures and sequence elements: stem-loops II and III, the Sm-binding site, and the downstream T tract. Using an exon-tagged SL RNA gene, we examined the phenotypes produced by a second-site 10-bp linker scan mutagenic series and directed mutagenesis. Here we report that transcription is terminated by the T tract, which is common to the 3 end of all kinetoplastid SL RNA genes, and that more than six T's are required for efficient termination in vivo. We describe mutants whose SL RNAs end in the T tract or appear to lack efficient termination but can generate wild-type 3 ends. Transcriptionally active nuclear extracts show staggered products in the T tract, directed by eight or more T's. The in vivo and in vitro data suggest that SL RNA transcription termination is staggered in the T tract and is followed by nucleolytic processing to generate the mature 3 end. We show that the Sm-binding site and stem-loop III structures are necessary for correct 3-end formation. Thus, we have defined the transcription termination element for the SL RNA gene. The termination mechanism differs from that of vertebrate small nuclear RNA genes and the SL RNA homologue in Ascaris.The spliced leader (SL) RNA is central to kinetoplastid nuclear gene expression. The SL RNA, or mini-exon-derived RNA, is a primary transcript that is synthesized independently of the pre-mRNA and trans spliced onto all nuclear mRNAs (1), most of which are synthesized as polycistronic precursors. SL RNA transcription represents approximately 10% of total RNA synthesis (10,42). The approximately 100 copies of the SL RNA gene are tandemly repeated in a head-to-tail manner in the chromosomal locus; the transcription of each gene is directed by an upstream promoter (26,30,54,62). It has been demonstrated by nuclear run-on analysis that transcription does not proceed into the SL RNA gene-flanking region (40, 62); therefore, the intergenic region (256 bp of a 363-bp repeat in Leishmania tarentolae, 1.2 kb of a 1.35-kb repeat in Trypanosoma brucei) can be considered a nontranscribed spacer (62). The presence of some termination element near the 3Ј end of the SL RNA sequence is thus indicated experimentally.Although the 39-nucleotide (nt) SL exon is well conserved in two domains, the primary sequence of the SL RNA intron is not conserved among the trypanosomes (73). However the secondary structure of the SL RNA, composed of three stemloops and a single-stranded region containing a putative Smbinding site (Fig. 1A), is consistent (11). This structure has been confirmed by physical-chemical and enzymatic studies (29, 44) and examined by mutagenesis (47). An equivalent structure is also conserved in the nematode SL RNAs (11, 53). The Sm-binding site (11)...