SH-PTP2 is a widely-expressed protein tyrosine phosphatase with two ta
ndem SH2 (src homology 2) domains and a C-terminal catalytic domain. G
lutathione S-transferase fusions of the SH2 domains alone and of a cat
alytically inactive full-length mutant were made, and binding assays w
ere developed using the purified fusion proteins to directly determine
what residues are involved in the recognition of binding targets by t
he SH2 domains. The binding kinetics of the SH2 domains to a phosphoty
rosyl-containing peptide of the sequence surrounding Tyr(1009) of the
platelet-derived growth factor receptor (PDGFR) beta subunit [DTSSVL(p
Y)TAVQPN] were determined by surface plasmon resonance, confirming tha
t this is a high-affinity binding ligand. Using various N- and C-termi
nal truncations of this peptide as competitors in the binding assays,
the minimum peptide that served as a high-affinity binding ligand was
found to be VL(pY)TAV. Systematic Ala substitutions of this peptide in
dicated that in addition to the phosphotyrosine (pY), the critical res
idues for recognition and binding are at pY+1 and pY+3 as previously r
eported, and notably at pY-2 as well. Binding competition results with
these and other PDGFR, IRP, and IRS-1 peptides suggested some general
rules for sequence recognition by the SH2 domains of SH-PTP2. Peptide
s that bind to the SH2 domains in the binding assays were also found t
o stimulate the phosphatase activity of SH-PTP2.