From the ICANN website:
"Purpose: This public comment period is to gather community input on the proposed amendments to .XYZ, .COLLEGE, .RENT, .THEATRE, .PROTECTION, and .SECURITY Registry Agreements to allow XYZ.COM LLC, the Registry Operator of these six TLDs, to offer a new registry service, which is a proxy service that will provide secondary gateway access toSRS/EPP, RDDS (via Whois – port 43 –, web-based Directory Service, RDAP, or any combination of the three), or both for the purposes of operating these TLDs in local domain name markets.
"These Registry Agreement amendments are intended to implement the proposed new registry service for XYZ, .COLLEGE, .RENT, .THEATRE, .PROTECTION, and .SECURITY TLDs, which was submitted and evaluated through the Registry Services Evaluation Policy (RSEP) process.
"Current Status: As required by the Registry Services Evaluation Policy (RSEP), ICANN has undertaken a preliminary determination on whether this RSEP proposal might raise significant competition, security or stability issues. ICANN's preliminary review (based on the information provided) did not identify any such issues.
"ICANN is seeking public comments on the proposed Registry Agreement amendments that will allow XYZ.COM LLC to implement a Supplementary Registration Proxy service for .XYZ, .COLLEGE, .RENT, .THEATRE, .PROTECTION, and .SECURITY TLDs."
According to ICANN, "XYZ.COM LLC submitted an RSEP request to offer a similar service initially on 26 August 2015 and then on 9 October 2015, respectively, however the Registry Operator withdrew these requests to clarify the description of the service."
See also:
RSEP Webpage: https://www.icann.org/resources/pages/rsep-2014-02-19-en
RSEP Policy: https://www.icann.org/resources/pages/registries/rsep/policy-en
XYZ.COM LLC RSEP Request: https://www.icann.org/en/system/files/files/rsep-2014159-xyz-et-al-request-02dec15-en.pdf [PDF, 23 KB]
According to ICANN, "XYZ.COM LLC submitted an RSEP request to offer a similar service initially on 26 August 2015 and then on 9 October 2015, respectively, however the Registry Operator withdrew these requests to clarify the description of the service."
RSEP Webpage: https://www.icann.org/resources/pages/rsep-2014-02-19-en
RSEP Policy: https://www.icann.org/resources/pages/registries/rsep/policy-en
XYZ.COM LLC RSEP Request: https://www.icann.org/en/system/files/files/rsep-2014159-xyz-et-al-request-02dec15-en.pdf [PDF, 23 KB]
Although not mentioned by ICANN in its public comment notice, the purpose of the proposed service is to meet requirements of Chinese law, for domain name registrants, registrars, and the registry operator (XYZ) in China:
"4. Chinese Gateway. Subject to all of the terms of this Agreement, Registry Operator may offer to Chinese registrars an EPP gateway to be used by ICANN-accredited registrars located in China so that Registry Operator and the Chinese registrars may comply with applicable local Chinese laws." Source (pdf)