Similar to other nuclear receptors, when activated, FXR translocates to the cell nucleus, forms a dimer (in this case a heterodimer with RXR) and binds to hormone response elements on DNA, which up- or down-regulates the expression of certain genes.

Rather, FXR induces expression of small heterodimer partner (SHP), which then functions to inhibit transcription of the CYP7A1 gene.

In this way, a negative feedback pathway is established in which synthesis of bile acids is inhibited when cellular levels are already high.

[citation needed] FXR has also been found to be important in regulation of hepatic triglyceride levels.

[9] Farnesoid X receptor has been shown to interact with: A number of ligands for FXR are known, of both natural and synthetic origin.