diff --git a/client/rpc/src/main/kotlin/net/corda/client/rpc/internal/RPCClientProxyHandler.kt b/client/rpc/src/main/kotlin/net/corda/client/rpc/internal/RPCClientProxyHandler.kt
index dce8fb99dd..bade7b368e 100644
--- a/client/rpc/src/main/kotlin/net/corda/client/rpc/internal/RPCClientProxyHandler.kt
+++ b/client/rpc/src/main/kotlin/net/corda/client/rpc/internal/RPCClientProxyHandler.kt
@@ -85,7 +85,7 @@ class RPCClientProxyHandler(
     private var reaperExecutor: ScheduledExecutorService? = null
 
     // A sticky pool for running Observable.onNext()s. We need the stickiness to preserve the observation ordering.
-    private val observationExecutorThreadFactory = ThreadFactoryBuilder().setNameFormat("rpc-client-observation-pool-%d").build()
+    private val observationExecutorThreadFactory = ThreadFactoryBuilder().setNameFormat("rpc-client-observation-pool-%d").setDaemon(true).build()
     private val observationExecutorPool = LazyStickyPool(rpcConfiguration.observationExecutorPoolSize) {
         Executors.newFixedThreadPool(1, observationExecutorThreadFactory)
     }