Cathepsin M, which catalyzes inactivation of both rabbit liver fructose-1,6-bisphosphate aldolase (EC 4.1.2.13) and rabbit liver fructose 1,6-bisphosphatase (Fru-P2ase; EC 3.1.3.11), has been characterized as a peptidyl peptidase. Modification of the COOH terminus of aldolase by cathepsin M or by Fru-P2ase converting enzyme 2 abolishes its ability to bind to phosphocellulose P11 and to form the complex with Fru-P2ase. On the other hand, modification ofthe COOH terminus of Fru-P2ase does not affect its interaction with aldolase. This property is lost, however, when Fru-P2ase is modified in the NH2-terminal region by the converting enzyme or by subtilisin. The results suggest that interaction of aldolase and Fru-P2ase may involve the exposed COOH-terminal region of the former and an exposed proteinasesensitive region located between residues 57 and 67 of the latter.During fasting, the activity of fructose-1,6-bisphosphate aldolase (EC 4.1.2.13) in rabbit liver decreases (1, 2) and an immunologically crossreacting material accumulates (2, 3). We have identified several lysosomal proteinases that catalyze inactivation of purified rabbit liver aldolase; limited proteolysis by one or more of these proteinases may be responsible for the changes observed in vivo. A new proteinase, designated cathepsin M, is ofparticular interest because (i) it is partially associated with lysosomal membranes, (ii) fasting increases the activity of the membrane-bound form, and (iii) it is expressed by intact lysosomes at neutral pH (4). Cathepsin M also catalyzes inactivation of rabbit liver fructose 1,6-bisphosphatase (Fru-P2ase) (4).In this paper, we report that, for both aldolase and Fru-P2ase, inactivation by cathepsin M is associated with loss of a segment of the COOH terminus. Complex formation between the two enzymes (5, 6) is affected by this modification of aldolase but not by similar modification ofthe COOH terminus ofFru-P2ase. On the other hand, modification of Fru-P2ase by either subtilisin or Fru-P2ase converting enzyme 2 (CE 2) does abolish its ability to form the complex with aldolase. Fru-P2ase modified by these enzymes shows substantially increased catalytic activity at pH 9.2, and this change in catalytic properties appears to be associated with nicking of one or more peptide bonds in a susceptible region located near the NH2 terminus, between residues 57 and 67 (7,8).MATERIALS AND METHODS Materials. Aldolase (5) and Fru-P2ase (9) were purified from livers of fed rabbits as described. The enzymes were stored at 2°C as suspensions in 80% saturated (NH4)2SO4. Before use, aliquots were centrifuged and the precipitates were dissolved in 10 mM sodium acetate (pH 6.0) and dialyzed overnight against the same buffer. Cathepsin M (4) and CE 2 (10) were purified from lysosome-rich rabbit liver heavy particle fraction as described. Ultrogel AcA34 was purchased from LKB.Enzyme Assays. Aldolase and Fru-P2ase activities were assayed as described by Gracy et al. (11) and Traniello et al. (12), respectively, the latter in the...