The protein encoded by this gene is a member of the protein tyrosine phosphatase (PTP) family. PTPs are known to be signaling molecules that regulate a variety of cellular processes including cell growth|differentiation|mitotic cycle|and oncogenic transformation. N-terminal part of this PTP contains two tandem Src homolog (SH2) domains|which act as protein phospho-tyrosine binding domains|and mediate the interaction of this PTP with its substrates. This PTP is expressed primarily in hematopoietic cells|and functions as an important regulator of multiple signaling pathways in hematopoietic cells. This PTP has been shown to interact with|and dephosphorylate a wide spectrum of phospho-proteins involved in hematopoietic cell signaling. Multiple alternatively spliced variants of this gene|which encode distinct isoforms|have been reported.