diff --git a/src/domain/participant/index.js b/src/domain/participant/index.js
index bbeb0cd39..394508c63 100644
--- a/src/domain/participant/index.js
+++ b/src/domain/participant/index.js
@@ -59,7 +59,7 @@ const { destroyParticipantEndpointByParticipantId } = require('../../models/part
 
 const create = async (payload) => {
   try {
-    return ParticipantModel.create({ name: payload.name })
+    return ParticipantModel.create({ name: payload.name, isProxy: !!payload.isProxy })
   } catch (err) {
     throw ErrorHandler.Factory.reformatFSPIOPError(err)
   }
diff --git a/test/integration/domain/participant/index.test.js b/test/integration/domain/participant/index.test.js
index bf957c748..e74e3c938 100644
--- a/test/integration/domain/participant/index.test.js
+++ b/test/integration/domain/participant/index.test.js
@@ -38,7 +38,6 @@ const ParticipantService = require('../../../../src/domain/participant')
 const ParticipantCached = require('../../../../src/models/participant/participantCached')
 const ParticipantCurrencyCached = require('../../../../src/models/participant/participantCurrencyCached')
 const ParticipantLimitCached = require('../../../../src/models/participant/participantLimitCached')
-const ParticipantProxy = require('../../../../src/models/participant/participantProxy')
 const ParticipantHelper = require('../../helpers/participant')
 const ParticipantEndpointHelper = require('../../helpers/participantEndpoint')
 const ParticipantLimitHelper = require('../../helpers/participantLimit')
@@ -418,8 +417,7 @@ Test('Participant service', async (participantTest) => {
   await participantTest.test('create participant with proxy', async (assert) => {
     try {
       const getByNameResult = await ParticipantService.getByName(testData.proxyParticipant)
-      const result = await ParticipantHelper.prepareData(testData.proxyParticipant, testData.currency, undefined, !!getByNameResult)
-      await ParticipantProxy.create(result.participant.participantId, true)
+      const result = await ParticipantHelper.prepareData(testData.proxyParticipant, testData.currency, undefined, !!getByNameResult, true)
       participantProxyFixtures.push(result.participant)
 
       for (const participant of participantProxyFixtures) {
diff --git a/test/integration/helpers/participant.js b/test/integration/helpers/participant.js
index 004985684..9ba247e5d 100644
--- a/test/integration/helpers/participant.js
+++ b/test/integration/helpers/participant.js
@@ -42,13 +42,14 @@ const testParticipant = {
   createdDate: new Date()
 }
 
-exports.prepareData = async (name, currencyId = 'USD', secondaryCurrencyId = 'XXX', isUnique = true) => {
+exports.prepareData = async (name, currencyId = 'USD', secondaryCurrencyId = 'XXX', isUnique = true, isProxy = false) => {
   try {
     const participantId = await Model.create(Object.assign(
       {},
       testParticipant,
       {
-        name: (name || testParticipant.name) + (isUnique ? time.msToday().toString() : '')
+        name: (name || testParticipant.name) + (isUnique ? time.msToday().toString() : ''),
+        isProxy
       }
     ))
     const participantCurrencyId = await ParticipantCurrencyModel.create(participantId, currencyId, Enum.Accounts.LedgerAccountType.POSITION, false)
diff --git a/test/unit/domain/participant/index.test.js b/test/unit/domain/participant/index.test.js
index 66be4818a..003590965 100644
--- a/test/unit/domain/participant/index.test.js
+++ b/test/unit/domain/participant/index.test.js
@@ -199,7 +199,7 @@ Test('Participant service', async (participantTest) => {
     participantFixtures.forEach((participant, index) => {
       participantMap.set(index + 1, participantResult[index])
       Db.participant.insert.withArgs({ participant }).returns(index)
-      ParticipantModelCached.create.withArgs({ name: participant.name }).returns((index + 1))
+      ParticipantModelCached.create.withArgs({ name: participant.name, isProxy: !!participant.isProxy }).returns((index + 1))
       ParticipantModelCached.getByName.withArgs(participant.name).returns(participantResult[index])
       ParticipantModelCached.getById.withArgs(index).returns(participantResult[index])
       ParticipantModelCached.update.withArgs(participant, 1).returns((index + 1))
@@ -254,7 +254,7 @@ Test('Participant service', async (participantTest) => {
   })
 
   await participantTest.test('create false participant', async (assert) => {
-    const falseParticipant = { name: 'fsp3' }
+    const falseParticipant = { name: 'fsp3', isProxy: false }
     ParticipantModelCached.create.withArgs(falseParticipant).throws(new Error())
     try {
       await Service.create(falseParticipant)