The prohormone convertases (PCs) are serine proteinases responsible for the processing of secretory protein precursors. PC2 is the only member of this family whose activation requires intracellular interaction with a helper protein, the neuroendocrine protein 7B2. In order to gain a better understanding of the mechanism of proPC2 activation, we have characterized the structural determinants of 7B2 required for proPC2 activation. We had already identified a proline-rich binding determinant in the 21-kDa domain, the portion of 7B2 responsible for proPC2 activation. We have now investigated the function of the weakly conserved amino-terminal portion of 21-kDa 7B2 by sequential deletions. Mutant proteins were analyzed in four assays: binding to proPC2, facilitation of proPC2 maturation, and activation of proPC2 in vivo and in vitro. We found that the aminoterminal half of 7B2 is not involved in proPC2 activation, and we identified an active 36-residue peptide that contains the previously characterized proline-rich sequence as well as an ␣-helix and the only disulfide bond of 7B2. Mutation of the ␣-helix and of the cysteines demonstrated that these determinants are absolutely required for PC2 activation. Thus, the 186-residue fulllength 7B2 rat protein can be functionally reduced to an internal segment of only 36 residues.Endoproteolytic processing is one of the major post-translational modifications that hormones and neuropeptides precursors must undergo during their biosynthesis. A family of mammalian subtilisin-like endoproteases responsible for these processing events has been recently identified, the prohormone convertases (PCs) 1 (reviewed in Refs. 1 and 2). PC1 and PC2 are the prohormone convertases specific for neuroendocrine cells; both enzymes are active late in the secretory pathway, i.e. the trans-Golgi network (TGN) and the secretory granules.Precursors such as proinsulin or proopiomelanocortin are processed sequentially, first by PC1, then by PC2 (reviewed in Ref.3). In agreement with the ordered activity of these enzymes, PC1 and PC2 have different activation pathways (reviewed in Ref. 4). Whereas the propeptide of proPC1 is first processed in the endoplasmic reticulum (ER) (5-7), as are those of furin (8, 9), PC5 (10), and LPC/PC7/PC8 (11), the proPC2 propeptide is processed only in the acidic compartments of the TGN/secretory granules. In addition, proPC2 is the only PC that specifically interacts with a helper protein, the neuroendocrine-specific protein 7B2 (12)(13)(14). We have demonstrated that this interaction is absolutely required for proPC2 activation, both in vivo in transfected and in 7B2 null mice (16), as well as in vitro (17).The neuroendocrine protein 7B2 was originally purified from pituitary extracts (18). It is an 185-residue precursor that is cleaved at a pentabasic site at residue 155 (Fig. 1), most probably by furin (19 -21). The two domains generated by this cleavage have distinct functions; the amino-terminal domain of 21 kDa is sufficient for PC2 activation (14), and the COOHt...