The RecQ DNA helicases, human BLM and yeast Sgs1, form a complex with topoi
somerase III (Top3). and are thought to act during DNA replication to resta
rt forks that have paused due to DNA damage or topological stress. We have
shown previously that yeast cells lacking SGS1 or TOP3 require MMS4 and MUS
81 for viability. Here we show that Mms4 and Mus81 form a heterodimeric str
ucture-specific endonuclease that cleaves branched DNA. Both subunits are r
equired for optimal expression, substrate binding, and nuclease activity. M
ms4 and Mus81 are conserved proteins related to the Rad1-Rad10 (XPF/ERCC1)
endonuclease required for nucleotide excision repair (NER). However, the Mm
s4-Mus81 endonuclease is 25 times more active on branched duplex DNA and re
plication fork substrates than simple Y-forms, the preferred substrate for
the NER complexes. We also present genetic data that indicate a novel role
for Mms4-Mus81 in meiotic recombination. Our results suggest that stalled r
eplication forks are substrates for Mms4-Mus81 cleavage-particularly in the
absence of Sgs1 or BLM. Repair of this double-strand break (DSB) by homolo
gous recombination may be responsible for the elevated levels of sister chr
omatid exchange (SCE) found in BLM-/- cells.