In over-the-counter (OTC) markets, liquidity providers propose quotes at which they are ready to buy or to sell securities. We propose a model for a dealer who fills orders from informed and uninformed traders and observes the price of their competition. The dealer uses the trading flow they receive and other sources of information to update the price around which they offer liquidity. To account for endogenous price formation and for competing venues, the dealer employs inventory-sensitive impact functions to update the price following trades filled in their trading venue. We solve the optimal market making problem in an infinite horizon setup. Finally, we show that the model can be used to generalise current designs of automated market makers where liquidity providers are currently providing liquidity at a loss.