So That Happened...What's Next After 'Brexit'

With less than an hour remaining ahead of the U.S. market open, it's well understood by the investment community that the United Kingdom will withdraw its membership from the European Union.

On the other hand, investors shouldn't blame themselves for not fully understanding the actual process of leaving the European Union. After all, this is a historic first.

What You Need To Know

Technically speaking, the British people voted to begin the process of withdrawing from the European Union. There will be zero impact or any changes in the immediate term.

Prime Minister David Cameron announced his resignation from office and a replacement is unlikely to be replaced until the fall. His successor will then invoke Article 50 of the Lisbon Treaty, which will formally begin the process of leaving the European Union.

Related Link: Brexit: Cameron Resigns, European Stocks Tank And Pound Hits 30-Year Low

The Article states, "Any Member State may decide to withdraw from the Union in accordance with its own constitutional requirements."

After the Article is invoked, the UK's leadership will begin a long process of negotiations with the European Union. As noted by CNBC, this process could take two years, if not more.

Entire trade agreements would need to be drafted, and other key issues such as immigration, trade, travel, etc. will need to be created from scratch.

The process of leaving the European Union is also seen as being irreversible.

After that, it may be anyone's guess as to what will happen. In the meantime, investors and traders might have to deal with severe volatility in not only the equity market, but currencies and futures.