OTT/RBM15-BSAC/MAL/MKL1/MRTF-A was identified as a fusion transcript generated by t(1;22)(p13;q13) in acute megakaryoblastic leukemia. Previous studies have shown that BSAC (basic, SAP, and coiled-coil domain) activates the promoters containing CArG boxes via interaction with serum response factor, and OTT (one twenty-two) negatively regulates the development of megakaryocytes and myeloid cells. However, the mechanism by which OTT-BSAC promotes leukemia is largely unknown. Here we show that OTT-BSAC, but not BSAC or OTT strongly activates several promoters containing a transcription factor Yin Yang 1-binding sequence. In addition, although BSAC predominantly localizes in the cytoplasm and its nuclear translocation is considered to be regulated by the Rho-actin signaling pathway, OTT-BSAC exclusively localizes in the nucleus. Moreover, OTT interacts with histone deacetylase 3, but this interaction is abolished in OTT-BSAC. Collectively, these functional and spatial changes of OTT and BSAC caused by the fusion might perturb their functions, culminating in the development of acute megakaryoblastic leukemia.Transcriptional activation of many genes depends on activities of the transcriptional factors that recognize specific target sequences but also the chromatin structures. Histone acetyltransferases and histone deacetylases (HDACs) 2 are recruited to target genes through association with specific transcriptional factors (1, 2). Histone acetyltransferases relax chromatin structures and activate transcription by acetylating histones, whereas HDACs condense chromatin structures and repress transcription by deacetylating histones (1, 2). So far, there have been three HDAC families identified (3). Class I HDACs (HDAC1, -2, -3, and -8) are closely related to the yeast transcriptional regulator RPD3 and expressed in most cell types. Class II HDACs (HDAC4, -5, -6, -7, -9, and -10) share domains with a similarity to HDA1, another deacetylase in yeast. Class III HDACs are related to the yeast silencing protein SIR2 and are dependent on NAD for enzymatic activity. HDACs exist in cells as a part of large molecular weight complex containing adaptor molecules, including Sin3A, SMRT (silencing mediator for retinoid and thyroid receptors), N-CoR (nuclear receptor corepressor), and/or SHARP (SMRT and HDAC1-associated repressor protein) (4). SHARP belongs to a family of RNA recognition motif proteins and also has a SMRT-interacting domain at the C terminus, which mediates the interaction with SMRT, N-CoR, and HDACs (5). The SMRT-interacting domain is also characterized as a SPOC (spen paralog and ortholog C-terminal) domain that was found in Drosophila spen and spen-like protein (6).The t(1;22)(p13;q13) is exclusively associated with infant acute megakaryoblastic leukemia. Two groups have been independently identified as a fusion transcript that is generated by this chromosomal translocation and composed of two novel genes, designated OTT (one twenty-two) or RNA-binding motif protein (RBM) 15 and megakaryocytic acute leukemia (MAL...