Decius comments on Harry Potter and the Methods of Rationality discussion thread, part 20, chapter 90 - Less Wrong Discussion
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It's already true that Draco practiced magic underage and wasn't arrested. Whether that is because the trace doesn't apply to him or because the people who see the results of the trace ignore them is open to doubt...
I believe someone just upthread has explained that the trace only applies to Muggleborns.
Clearly not assigned to only Muggleborns (or even Muggle-raised) given that the Weasley twins openly lamented receiving the notices at the end of the first year reminding them not to cast magic over the break.
As to its effectiveness, both I (and apparently at least one other person) already spoke on it.
Draco didn't have a wand yet. Officially. No reason to be tracked.