Importantly, the dealer typically agrees to execute these orders at the, as yet unknown, fix price and often does not charge either a fee or spread on the trade. These arrangements differ from standard principal-based risk transfer services offered by dealers, where the risk to the dealer is mitigated by using the current market price and applying a spread.
The arrangements for fix-related orders mean that the price risk on the transaction is transferred entirely from the client to the dealer without any compensation. The dealers then have to manage the risk associated with this flow.