We have adapted the oocyte injection procedure for the detection of regulatory components involved in the transcription ofa eukaryotic mRNA gene. Injection of the histone gene repeat h22 DNA ofPsammechinu miliaris into the Xenopwa oocyte nucleus results in correct initiation of the histone mRNAs, but readthrough by RNA polymerase occurs at the 3' end of the H3 histone gene (Hentschel, C. C., Probst, E. & Birnstiel, M. L. (1980) Nature (London) 288, 100-102). Coinjection into the oocyte of a chromosomal salt wash fraction derived from sea urchin embryos results in the generation of authentic 3' termini of the histone H3 mRNA. We have partially purified the protein component by column chromatography and density gradient centrifugation. The regulatory factor binds to heparin columns and, hence, has the properties anticipated ofan RNA-or DNA-binding protein. The sedimentation coefficient of the active component was determined to be about 12 S, suggesting a molecular weight of 200,000-250,000.Two general approaches can be used to study the mechanisms controlling gene expression. The first is to identify the regulatory signals by mutation, followed by an analysis ofthe expression of the mutated genes. Another approach is to characterize regulatory factors (proteins) interacting with these DNA signals.For an understanding of the processes of differentiation, the study of mRNA genes transcribed by polymerase II is of particular importance, because it is the protein-coding genes that primarily determine the cell phenotype.There is now evidence that expression of the different sea urchin histone gene variants is under developmental control (reviewed in ref. 1). This regulation appears to occur both at transcription initiation and termination. Control at transcription initiation is suggested because the regulatory pattern can readily be reproduced by in vitro transcription of nuclei isolated from different embryonic stages ofthe sea urchin (2). That transcription termination also may be controlled developmentally can be inferred from a recent report (3) that transcription in the newt oocyte reads through the 3' termini of histone genes, yielding the large transcripts typical for lampbrush chromosomes of this species.Previous frog oocyte injection experiments have shown that the promoter (4, 5) and terminator signals (6) of all the genes of the sea urchin histone DNA clone h22 appear to be recognized by the frog oocyte transcriptional machinery, although with greatly different efficiencies (7). For the sea urchin H2A histone gene, the faithful generation of correct H2A histone mRNA 3' ends is dependent on the presence of a highly conserved inverted DNA repeat that lies immediately upstream of the 3' mRNA terminus 5' A-C-C-A 3' and on the presence of spacer sequences further downstream (6). The behavior of the H3 histone gene in the oocyte injection experiments is exceptional in that transcription initiation, although varying in different batches of the oocytes, usually occurs at a high rate, but transcription termi...