Involved in the specific maturation or degradation of a number of bioactive peptides. Release of a C-terminal dipeptide, oligopeptide-|-Xaa-Yaa, when Xaa is not Pro, and Yaa is neither Asp nor Glu. Thus, conversion of angiotensin I to angiotensin II, with increase in vasoconstrictor activity, but no action on angiotensin II. Binds 1 zinc ion per subunit. Expressed in the compound ganglion and in the posterior region of the midgut. Belongs to the peptidase M2 family.