Compromising exchanges foolishly flirting Fancy-Fancy at first dares to produce (5-4)

'compromising exchanges' is the definition.
(compromise between two parties)

'fancy-fancy at first dares to produce' is the wordplay.
'at first' says to take the initial letters.
'produce' indicates anagramming the letters.
The initial letters of 'fancy fancy' is 'ff'.
'ff'+'dares'+'to'='ffdaresto'
'ffdaresto' with letters rearranged gives 'TRADE-OFFS'.

'foolishly flirting' is the link.
This may not be right. Some or all of it may be part of another bit of the clue.