Propeptides of the vitamin K-dependent proteins bind to an exosite on ␥-glutamyl carboxylase; while they are bound, multiple glutamic acids in the ␥-carboxyglutamic acid (Gla) domain are carboxylated. The role of the propeptides has been studied extensively; however, the role of the Gla domain in substrate binding is less well understood. We used kinetic and fluorescence techniques to investigate the interactions of the carboxylase with a substrate containing the propeptide and Gla domain of factor IX (FIXproGla41 2) The Gla domain plays an allosteric role in substrate-enzyme interactions. 3) Carboxylation reduces the allosteric effect. 4) The similarity between the steady state carboxylation rate constant and product dissociation rate constant suggests that product release is rate-limiting. 5) The increased dissociation rate after carboxylation contributes to the release of product.The vitamin K-dependent ␥-glutamyl carboxylase is an integral membrane protein located in the endoplasmic reticulum. It catalyzes the post-translational modification of specific glutamic acid residues to ␥-carboxylglutamic acid in a number of vitamin K-dependent proteins. In these vitamin K-dependent proteins, multiple glutamic acid residues in the amino-terminal Gla 1 domain are modified (1-3). The existence of these multiple ␥-carboxylglutamic acid residues allows the Gla domain to form the calcium-dependent conformation required for the activity of these vitamin K-dependent proteins (4, 5). Under-carboxylated vitamin K-dependent proteins cannot form this calcium-dependent structure and, as a result, possess poor affinities for phospholipid surfaces, endothelial cells, or activated platelets (6 -8).Previous studies indicate that all or nearly all of the Glu residues to be carboxylated are modified during a single substrate binding event (9, 10). The loss of as few as three carboxylations can markedly decrease the activities of vitamin K-dependent proteins (8). Therefore, because the most frequently used anticoagulant, warfarin, causes under-carboxylation by reducing vitamin K concentration, understanding the mechanism by which processivity yields functional enzymes is important.A tethered model has been proposed to account for how carboxylase accomplishes full carboxylation of pro-factor IX (9, 11). In this hypothesis, the primary interaction between carboxylase and its substrates is mediated by a propeptide sequence of 18 amino acids. Presumably, the propeptide anchors the Gla domain of the substrate near the carboxylase active site for a time sufficient for modification of all or most of the Glu residues of the Gla domain.Several lines of evidence are consistent with the idea that full carboxylation is the result of a stochastic, processive mechanism, i.e. the degree of carboxylation is controlled by the balance between the carboxylation rate of the substrate and the dissociation rate of the product. First, bone Gla protein, whose propeptide has an extremely low affinity (K i Ͼ 500 M) for the carboxylase and therefore a rapid dis...