The quotes/trading by market makers are done by computers in the OTC,correct?
For the most part, yes. I suspect when a large buyer or seller enlists the help of a market maker, it's a little more hands on.
Software or a human being places the quotes on the level II?
Software.
A human never see's or controls the majority of the trades?
Never would probably be a strong word. I would imagine there's some human oversight on the software programs to ensure they're working properly.
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