V(D)J recombination proceeds in two stages. Precise cleavage at the border of the conserved recombination signal sequences (RSSs) and the coding ends results in flush double-stranded signal ends and coding ends terminating in hairpins. In the second stage, the signal and coding ends are processed into signal and coding joints. Coding ends containing certain nucleotide homopolymers affect the efficiency of V(D)J recombination. In this study, we have tested the effect of small changes in coding-end nucleotide composition on the frequency of coding-and signal joint formation. Furthermore, we have determined the sequences of coding joints resulting from recombination of coding ends with different compositions. We found that the presence of two T nucleotides 5 of both RSSs, but not a single T, reduces the frequency of signal joint formation, i.e., interferes with the cleavage stage of V(D)J recombination. However, coding-joint processing is sensitive even to a single T. Both the sequence of the coding ends and the particular RSS (12-mer or 23-mer) with which the coding end is associated affect the final composition of the coding joints. Thus, the presence of P nucleotides, the conservation of one undeleted coding end, the formation of joints without any deletions, and the templatedependent insertion of nucleotides are strongly influenced by the coding-end nucleotide composition and/or RSS association. The implications of these results with respect to the processing of coding ends are discussed.Immunoglobulin (Ig) and T-cell receptor (TCR) genes are expressed in B and T lymphocytes, where they encode antibody and TCR molecules, respectively. Early in lymphocyte development, at the pre-B-and pre-T-cell stages, functional Ig and TCR genes are produced by the rearrangement of V, D, and J gene segments (19). The gene segments are flanked by recombination signal sequences (RSSs) that are composed of 7 and 9 conserved nucleotides separated by nonconserved 12-or 23-nucleotide spacers. During V(D)J recombination, a doublestrand cleavage occurs at the border of the signal and the coding ends. The signal ends join, forming a perfect signal joint, and the coding ends join, creating an imperfect coding joint. The imprecision in the coding junctions creates further diversity in the Ig and TCR genes. Imprecision at the coding ends is due to deletion and/or insertion of nucleotides. Two types of sequence insertions occur at the coding joint. The first, N nucleotide addition, is due to the action of terminal deoxynucleotidyl transferase (TdT), which adds nontemplated nucleotides. The second, P (for palindromic) insertion, denotes the presence of short inverted-repeat sequences adjacent to the nontruncated V, D, or J gene segments.V(D)J recombination can be divided into two phases: cleavage at the RSSs, followed by processing of the signal and coding ends into signal and coding joints. If the process is impaired at the cleavage step, neither signal nor coding joints are formed. If cleavage occurs but processing is completely inhibited...