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Yes, what you want to do is create a tournament where Team Selection is Fixed, and the Roster Source is "By Team Region". You'll have to manually set up all the teams for the tournament, but if you choose one per each region, then the AI will be able to select the players to represent each one.
The other way you could handle this would be to set up the team selection as "Fixed", and the roster selection as "By Affiliated Teams". In this case, you would have to affiliate the tournament with all the leagues, and then manually assign each team to one of the tournament teams. So it's a bit more work, but if you wanted to, say, create 2 teams for each of the leagues in question (maybe one team for each division of the league, for example), then this way would allow a little more flexibility (although it may miss players who are free agents in the league in question, for example).
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