The mechanism of this enzyme is only speculate at this time, based on the known structural data. The first step is binding of peroxide into the active site, followed by the binding of a chloride ion to the activated peroxide. Three residues near the peroxide-binding site “deserve special interest, the hydrophobic side chains of Trp350 and Phe397 as well as the imidazole ring of His404. Both hydrophobic side chains provide a hydrophobic environment, which seems to be necessary to stabilize the chloride binding,” whereas the His404 appears to play a critical role as an acid-base group during catalysis
(4.) Without a definite picture of what the peroxide intermediate that is formed looks like, an actual understanding of the rest of the mechanism is hard to propose, but conjecture gives rise to the thought that the next step would be a nucleophilic attack by the chloride on the intermediate, since other peroxidases work in this fashion. “Whatever the exact mechanism, a short lived HOCl intermediate is formed by the enzyme, and it is likely that His404 acts as the proton donor”
(4.)